The boost will see total revenue for out of home advertising reach £1.5 billion, almost doubling its current level of £880 million, the company say.
Kinetic say outdoor digital signage will account for almost a quarter of the total outdoor revenues by the end of the decade. James Copley, UK chief operating officer at Kinetic, said: “Rather than being a disruptive force, digital technology will create enormous opportunities for out-of-home media.
“Our analysis, consultations and research suggest the poster industry is entering a transformative period, one in which it will gain market share by integrating technology and delivering a wider range of effective and engaging propositions.”
Kenetic’s research also revealed that consumers already see value of interacting with, and that 66% expect to see digital screens in most city centres and nearly three-quarters believe digital posters are beneficial in high-dwell locations.
The Move to Outdoor
While nobody can deny the success of indoor digital signage, with signs becoming ubiquitous in locations such as shopping malls, retail parks and in airports, digital signage has already boosted the out of home advertising sector to its current level. But outdoor has always trailed behind as the cost if implementing screens outside has proved too expensive for anyone other than the big advertising companies.
This, however, is changing for a number of reasons.
Firstly, outdoor screens have fallen in price and the use of hardware such as LCD enclosures make installing a screen in an outdoor environment a less expensive devour than it used to be.
Secondly, the audience reach and amount of views outdoor screens get, in comparison to indoor screens, is far higher and makes any additional costs involved with outdoor digital signage worthwhile.