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Digital Place-based Media Growth Accelerates

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Digital Place-based Media Growth Accelerates

Increased Client Investment in Sector Results in Record Growth

New York, October 4, 2010 – The Digital Place-based Advertising Association (DPAA) announced today that growth rates for the industry sector are accelerating. Using information collected by Miller Kaplan Arase, the association announced that advertising revenue for the Digital Place-based sector has grown a very strong 25% during the first half of 2010, building on a growth rate of 1% in 2009 when most major media suffered steep declines. The growth rate of 25% in the first half of 2010 is notably without the benefit of the short term infusion of political advertising which other media enjoy, further evidence of strong momentum in the Digital Place-based market. Overall, advertising revenue in the Digital Place-based sector is estimated to be in excess of $1 billion today. 

 “This industry is coming together and increasingly advertisers are embracing the ability to engage consumers on the go, where they work, shop, dine, travel and play, closer to the point of purchase than the sofa in their living rooms” said Mike DiFranza, President of Captivate Network and DPAA Chairman. This sector enables advertisers to replace TV impressions lost to DVR’s as well as engage Light TV viewers with content relevant to their activities outside the home. 

“This momentum will no doubt continue given the plethora of research that has been done over the past two years validating the engagement of consumers with Digital Place-based media and helping advertisers understand its impact and justify increasingly greater investments” adds Susan Danaher, President of the DPAA.  The Nielsen Company currently publishes The Fourth Screen Audience Report quarterly, giving advertisers a single report that covers multiple Digital Place-based networks and sizes their audiences.  Arbitron measures the sector annually with its Digital Place-based Video Study.  Just in the last several weeks, both MRI and The Ipsos Mendelsohn Affluent Survey published information on the sector. Simmons will soon follow in the spring, and Scarborough is including Digital Place-based media in their upcoming study.

“The growth rates and activity in this sector are very encouraging,” said Kris Magel, Executive Vice President, Director of National Broadcast at Initiative. ”It’s an indication that Place-based media is moving beyond the “start-up” phase and becoming a viable medium that is here to stay – and one that is very complementary to more traditional video media options.”

Advertising Revenue Growth

Media

2010 YTD Growth (%)

2009 Growth (%)

Digital Place-based

+25

+1

Cable TV

+13

+7

National Newspapers

+11

-14

Network TV

+6

-11

Outdoor

+2

-13

National Magazines

+2

-19

Network Radio

+1

-10

Internet

0

+1

Local Newspapers

0

-10

Spot Radio

-2

-9

Spot TV

-4

-16

Syndicated TV

-4

-17

Sources:  Miller Kaplan Arase for Digital Place-based and The Nielsen Company for all other. 2010 YTD, January through June.

 

About DPAA

Founded in 2007, the Digital Place-based Advertising Association (DPAA), formerly OVAB,  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.

For more information contact:

Ajay Durani, VP Marketing, DPAA

646.205.8520, ajay.durani@dp-aa.org

Susan Danaher, President, DPAA

646.205.8519, susan.danaher@dp-aa.org

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