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DPB Media Revenue Growth RATE for 2011 exceeds overall u.s. ad INDUSTRY by 16:1

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(Revised 5/23/2012)

NEW YORK, April 24, 2012-- The Digital Place-based Advertising Association (DPAA) announced today that growth rates for the industry sector remained strong in 2011, exceeding overall US ad industry growth by more than a 16:1 margin.

Based on information collected by Miller, Kaplan, Arase on behalf of DPAA and in conjunction with PQ Media, advertising revenue for the digital place-based sector grew 13.2% for the full-year 2011 compared with 2010, more than 16 times the 0.8% growth rate for the overall U.S. ad industry, as reported by Kantar Media. Among all media segments, growth for digital place-based media was second only to that of syndication, which recorded a 15.4% gain. Digital place-based networks’ strong showing in 2011, including cinema advertising, boosted total industry revenue to an estimated $1.4 billion, according to comprehensive data compiled, analyzed and published by PQ Media, which also includes the contribution of Miller, Kaplan, Arase data.

DPAA and PQ Media in early 2012 developed a data-sharing relationship in an effort to not only strengthen the industry's revenue and growth data, but also provide a consistent data source for strategic planning.

Digital place-based networks remained one of the fastest-growing US ad-based media in 2011 despite cyclical events that negatively impacted the overall media business in the second half of the year, and the cinema ad category in particular. Excluding cinema, however, combined 2011 operator revenue in the other four venue categories – retail, corporate & healthcare, entertainment & education, and transit – increased 13.2% to $736 million, according to PQ Media’s data released in April.

While a record broadcast and cable TV upfront and the sudden change in economic sentiment in the second half of 2011 impacted most ad-based media, including digital place-based, PQ Media’s data reveals that economic and advertising indicators in the first quarter of 2012 are encouraging and, therefore, the firm is forecasting a relatively stable economic recovery in the second half of 2012. Concurrently, TV's inventory scarcity will become more apparent, as a record increase in political and Olympics ad spend may force major brands to consider investing in other high-quality video platforms, such as digital place-based.

 “2011 was a challenging year across the media landscape, but it was also a year that further solidified digital place-based as a highly desired media choice because of its ability to engage consumers on the go,” said Mike DiFranza, president of Captivate Network and DPAA chairman. “With the advent of new measurement tools and growing recognition among agencies that place-based media is an effective tool to influence consumer behavior, we expect to see a continuation of strong growth in 2012.”

Susan Danaher, president and CEO of the DPAA, said, “Digital place-based media engages consumers at the right time, in the right place and in the right mindset. In today’s fast-paced world, it’s easy to see why the ability to reach on-the-go consumers in contextually relevant settings resonates more powerfully than ever among advertisers.”

 

Advertising Revenue Growth

Media

2011 vs 2010

Growth (%)

Syndicated TV

+15.4

Digital Place-based

+13.2

Cable TV

+7.7

Outdoor

+6.5

Network Radio

+2.7

Internet

+0.4

National Magazines

 0.0

Network TV

-2.0

National Newspapers

-3.6

Local Newspapers

-3.8

Spot TV

-4.5

Spot Radio

-5.4

Total U.S. Advertising: +0.8% 2011 vs. 2010

Sources: PQ Media and Miller, Kaplan, Arase for digital place-based media; Kantar Media for all other media

About DPAA

Founded in 2006, the Digital Place-based Advertising Association (DPAA) represents leading digital placed-based networks and the advertising community that is actively engaged in planning, buying and evaluating the effectiveness of the medium. On behalf of its members, DPAA seeks to foster ongoing collaboration between agencies and digital place-based advertising networks; provide standards, best practices and industry-wide research; and promote the effectiveness of digital place-based advertising. For more information please visit www.dp-aa.org.

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