Digital signage has been staring across the chasm for years…

PQ Media’s new study says digital out-of-home media may be on the verge of its long-awaited industry breakout.

After momentum in recent years through increased consumer exposure and operator revenues, digital signage is now the world's second fastest-growing ad medium—and a vital part of the transitioning media ecosystem.

PQ Media's Consumer Exposure to Digital Out-of-Home Media Worldwide 2014 reports the average global consumer was exposed to various DOOH media for 14 minutes per week in 2013, a 75% increase from only eight minutes in 2007.

Key growth drivers included consumers spending a record amount of time with media outside their homes due to more wireless devices, longer work commutes, increases in leisure travel and longer shopping hours.

PQ Media's data shows improved designs, content, interactivity and mobile couponing extend the public “dwell time” with screens.

DOOH media is now the second fastest-growing ad medium worldwide based on average weekly consumer exposure projected through 2017. DOOH trailed only mobile media in 12 of the 15 largest markets where exposure results were compared with other media (including traditional OOH, television, radio, newspapers, magazines, Internet and mobile).

Consumer DOOH exposure is forecast to increase at a compound annual growth rate of 8.6% to 20 minutes on average per week in 2017, fueling higher spending on DOOH inventory and a 14.2% CAGR in operator revenues in the forecast period.

Traditional OOH revenues, meanwhile, will rise at a 4.1% CAGR over the next five years, as static billboards decline at a 1.6% CAGR to 44 minutes weekly in 2017. Key growth drivers will include steady rollouts of dynamic signage to replace lower-margin traditional displays in choice metros, improved content, stronger measurement and tactics geared to boost engagement via links between DOOH messages and mobile and social media.

While the U.S. remains the world's largest DOOH market by revenues, it ranks fourth in consumer DOOH exposure behind Australia, the UK and Canada, all of which have high concentrations of people near a few major cities where most DOOH engagement occurs.

Bolstered by the successful results during the UK-hosted Summer Olympics in 2012 and high expectations for the 2016 summer games in Brazil, DOOH exposure is projected to exceed that of traditional OOH in both countries in 2017. Key drivers will include innovative uses of new technologies, more interactive content and DOOH placement in the highest-traffic locations. Nearly 50% of the U.K.'s digital signage is positioned at the busiest sites in London, offsetting exposure time from infinitely more static billboards nationwide.

While China is the second-largest DOOH market by revenues, it features wide swaths of land where digital and wireless technology can't be deployed yet, either due to regional topography or areas where inhabitants are too far from major cities or not trained to use new technologies. Consequently, Asia's emerging economic giant has a huge population off the radar, which places China near the bottom of the world's leading markets.

In 2013, Australia became the first global market in which consumers were exposed to DOOH for more than one hour per week, fueled by a surging digital signage industry in a country where 90% of the population lives near the largest cities (and therefore, most of the DOOH media).

Go Consumer Exposure to Digital Out-of-Home Media Worldwide 2014