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Ad Spending On Out-of-Home Media Up 63% In Two Years

Mobile technology has untethered consumers from homes and offices, but hasn?t put them out of advertisers? reach.

Advertisers in 2006 spent $1.7 billion — a 27 percent increase over 2005 — to reach consumers in captive environments such as retail, transit, cinema, and office sites, according to new research from PQ Media LLC, Stamford, Conn. In 2007, spending on alternative outof-home media, such as video advertising networks and digital billboards, will rise by 28 percent, to $2.2 billion, PQ Media said.

“Americans spend twice as much time outside their homes and workplaces today than they did just a few decades ago,” said Patrick Quinn, PQ Media president and CEO. That trend is electrifying the market, he said. “Unlike its mass media peers, alternative out-of-home advertising is impervious to channel or Web surfing and is immune to audience fragmentation.”

Advertisers see the new media as an efficient, cost-effective way to deliver their message, and the data backs them up, the PQ Media survey found.

Because most consumers view the alternative media more positively than they do conventional media, companies can launch digital advertising platforms that generate higher revenue than the conventional formats they replace, the report said.


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