Market

Outdoor advertising is as old as advertising itself, but new life is being breathed into the old medium. In fact, as digital, video and wireless technologies redefine the sector over the next few years, it will rank second only to Internet advertising in advertising spending growth. Unlike TV or radio, out-of-home advertising is immune to channel or Web surfing and digital and video technologies are making the medium more compelling and effective. As an example of the opportunities that new technologies are opening up, out-of-home video advertising networks will comprise the largest component of what is described as the “alternative” out-of-home advertising sector. Out-of-home video, also known as narrowcasting, is video content and advertising distributed to captive audiences.

The outdoor advertising market, which has traditionally involved pasting large pieces of paper on billboards or bulletins, is capitalizing on the growing adoption of technology: outdoor video delivered through LED screens. This, in turn, is attracting advertisers who now have a new tool to reach consumers. As outdoor advertising really means out-of-house, consumers are beginning to see video billboards in a growing number of places such as stores, office buildings, malls, gas stations, bars and restaurants. Driven by the growing popularity of out-of-home lifestyles as well as technology advancements leading to innovations in signage, the total global market for all types of outdoor advertising is projected to reach $30.4 billon by 2010. While major, and mature, markets such as Europe, United States and Japan are slowing down, emerging markets like Asia-Pacific, and the Middle East and Africa are expected to help drive the market, with a growth potential of 12%, and 10% respectively, according to Global Industry Analysts, Inc.

Other data from the report titled “Outdoor Advertising: A Global Strategic Business Report”:

• World billboard advertising market, the largest mode of outdoor advertising, is expected to increase by $2.85 billion from 2007 to 2010.
• Europe dominates the billboard market with a 31% share, while Asia-Pacific turbo-charges global growth with a compound annual growth rate (CAGR) of 12.3% for the forecast period.
• By region, the world outdoor advertising market is dominated by Europe, in part because of the highly lucrative Russian market, which is forecast to grow at a robust double-digit CAGR of 30.2% over the analysis period. ViGlazeTx is patented in Russia, where a huge level of new building and refurbishment is currently under way, and in other Eurasian countries.
• Outdoor advertising expenditures in the two other fast-growing European markets, Hungary and Norway, together are expected to rise by $119.9 million from 2007 to 2010.
• In Asia-Pacific, unbridled growth is forecast in Indonesia, Thailand and China: Together, these regional markets are expected to corner close to 65% of the total expenditures on outdoor advertising in Asia by 2010.
• In the Middle East, UAE and Turkey are expected to generate the highest growth, with expenditures in these markets, together, projected to reach $214.03 million by 2010.
• In the US, consumers spend twice as much time away from home than they did 30 years ago and the average daily commute has doubled to about an hour. It is projected that US outdoor advertising revenues will rise from $7.4 billion in 2007 to $10.2 billion in 2011.

The nature of traditional outdoor advertising makes it difficult to communicate product details, competitive advantages, and specific consumer benefits. ViGlazeTx will allow an extended graphic message to be communicated.

Construction of new billboards is restricted by cost, space availability, and rigid municipal codes and environmental regulations that have eliminated, reduced, or limited the volume and placement of outdoor advertising. Due to the unique transparency of ViGlazeTx, a billboard will no longer have to be just an add-on to a building or other location, but an actual extension of a structure’s facade already in place. ViGlazeTx has a unique ability to widen the outdoor advertising market as it allows the transformation of new areas into advertising space which wouldn’t be possible to use otherwise. ViGlazeTx can be positioned in many locations where typical billboards have never been seen, allowing for greater dynamic exposure and message retention.

Initial market penetration of ViGlazeTx will be mainly through the retro fit of exterior building facades, skylines or transparent inner walls. Incorporation of the system into new build structures will be subject to longer lead in times but that would have the added advantage of being triple glazed. In both cases the use of ViGlazeTx systems could help finance a building to install a more thermally efficient exterior.

Another key area is digital re-branding of point of sale sites, such as fast food and fuel outlets.

In markets where digital outdoor media use is low the business may consider broadening its product line to include conventional opaque billboards and temporary digital facade nets. In sophisticated markets such as Europe and North America it’s worth concentrating only on the supply of core products and services.

The transparent digital media system that Alchemie Technology and its technology partners have developed is currently known as ViGlazeTx, however a review of branding will be taken in the Stage 2 of the investment plan to ensure the name, trademarks and logos are developed optimally.

The ViGlazeTx business is “exploiting high growth market sectors” with at least 10% annual growth in a multi billion dollar market.