PQ Media published its estimates for the DOOH market in Europe during the recent Screenmedia Expo. According to the company, the European digital signage advertising market grew by 13.4% in 2010 to reach $1.68 Billion (1.18 Billion). It is expected to continue to grow at a CAGR of 15.9% during the period 2010 – 2015 to reach $3.51 Billion (€2.5 Billion).

These figures also include revenues from cinema advertising.

That would be all well and good if PQ Media didn’t reveal that it doesn’t have a clear understanding of the European market, as its shows in its Press Release.

Here is a prime example:

- “The U.K. is the most developed European market, accounting for about one-third of revenue, while Russia surpassed Germany in 2010 as the third-largest market.” and “Germany’s DOOH industry is not as advanced as that of Russia or France. Strict government regulations, such as the prohibition of roadside billboards on the AutoBahn, and the lack of an aggressive strategy by market leader Storer (sic), have squelched growth […].”

The truth: The UK is indeed the strongest market in Europe. However, the German DOOH market, in the strictest sense of the term (i.e. excluding cinema) is historically well ahead of the French market. Digital out of home revenues in 2010 were 40 – 50% higher in Germany than they were in France.

To claim that Ströer hasn’t been aggressive in the sector is, to say the least, misleading. During the last year, Ströer has invested several millions (reportedly a height-figure sum) in deploying its Out-of-Home Channel, which will become the most important digital signage network in the country during the course of 2011. Furthermore, Infoscreen, a Ströer affiliate, is already the country’s leading operator.

Following PQ Media’s rankings, if Germany appears in 4th place and France is second, then it’s simply because last year cinema advertising revenues in Germany were particularly weak, whereas in France they rose sharply. Unfortunately, PQ Media’s analysis of the structure and dynamism of the DOOH markets in these countries is quite different.

- “Meanwhile, France was the fastest-growing European market in 2010, expanding 34.5%, primarily due to several large DBB (digital billboards & signage) transit contracts awarded during the year.”

The truth: So what are these several large deployments in the transport sector quoted by PQ Media?

In 2010, the only significant new network was that deployed by Metrobus in the Paris underground system. The only other sizeable installations in 2010 were rather to be found in the retail sector.

- “Large global OOH companies are prevalent in Europe, particularly Clear Channel and JCDecaux. Clear Channel is in 18 European markets, including the six leading markets, and has rolled out digital or Spectacolor DBB networks in Austria, Belgium, Czech Republic, Denmark, Finland, Hungary, Poland, Portugal, Romania and Switzerland.”

The truth: Outside of the major European markets, Clear Channel only has digital activities – in the strictest sense of the term – in Denmark Finland, and Switzerland – as well as in Norway (overlooked by PQ Media).

In the other countries mentioned (Austria, Belgium, Czech Republic etc…) it appears to us that Clear Channel (though its Defi affiliate) rather deploys signage (e.g. Samsung or LG Logos on buildings or tower blocks) or large format billboards, which may or may not occasionally be linked to digital installations. But under no circumstances could they be considered as digital out of home networks.