alternative outofhome media booming

While advertising spending in out-of-home media is healthy, alternative out-of-home media is booming, according to an analysis released Monday from PQ Media.

Compared to total out-of-home, which grew 10.6 percent last year, alternative out-of-home media (video advertising networks and screens, digital billboards and displays and place-based advertising), grew 27 percent in 2006 to $1.69 billion. For 2007, alternative out-of-home is forecast to grow at an accelerated 27.7 percent rate.

"Alternative out-of-home media is being electrified by what could be dubbed a perfect storm," said Patrick Quinn, president and CEO of PQ Media. Ironically, the trends impeding traditional media, consumer fragmentation and control, advertising accountability and the emergence of digital technology, are the very catalysts stimulating the tremendous growth in alternative out-of-home advertising."

Among the three segments of alternative out-of-home media identified by PQ Media in its latest forecast report, video advertising networks is the largest sub-segment, accounting for 60 percent of total spending against media provided by companies such as National CineMedia (NASDAQ:NCMI) , Premiere Retail Networks and Gannett's Captivate Network. Spending in the video sub-segment grew 28 percent in 2006 to just over $1 billion.

Digital billboards and displays rolled out by companies such as Clear Channel Outdoor (NYSE:CCO) ,Lamar Advertising (NASDAQ:LAMR) and Reactrix Systems, is the fastest-growing sub-segment, with spending up 55.4 percent in 2006 to $232.2 million.

Place-based media, the second largest segment of alternative out-of-home media, grew 14.1 percent to $446.4 million.