The pie slices keep getting thinner

Joe Mandese over at MediaPost has another chilling piece today about where the advertising money is going. This time, it’s what are called “out of home networks,” like the video screens you find at some gas stations, convenience stores, rest rooms, digital billboards and in-cinema advertising. The article cites a report by consultants Profitable Channels (who are active in this space).

The report estimates that the 700 digital out-of-home networks launched since 2002 will account for $1.2 billion in national ad spending this year, making it the size of a major network TV daypart.

…The growth is being spurred by a combination of entrepreneurial zeal from venue operators looking to tap the fast-growing advertising sector, as well as from increasing demand form advertisers and agencies seeking alternatives to traditional media. Much of the growth is coming from retail-savvy marketers such as packaged goods companies seeking to get closer to where their consumers are making their purchase decisions…

PQ Media estimates that in-store networks are growing at an annual rate of 45 percent, and remember, this is ad money that used to go to traditional media, such as television.

Follow the money, folks. Follow the money.

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