Surface Computing - Future opportunity for Digital Ads

Microsoft announces new computer. This is good insight into how we'll be able to interact with computers in the future.

One application that this doesn't highlight is the ability to interact with different types of potential ads and measure the level of interaction between the user and the ad.

This video provides a good overview.




You can see Jeff Hans presentation when he presented this software on TED talks in August 2006.

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I came across this awhile back and thought it was impressive. Was interesting to see him appear in the video above and that Microsoft is marketing hardware with some (all?) of his software.

Alternative Out-Of-Home Media Spending Accelerates - May 9, 2007

Alternative out-of-home media spending in Video Advertising Networks, Digital Billboards and Ambient Advertising surged 27.0% to $1.69 billion in 2006 and is projected to grow at an accelerated 27.7% rate in 2007. According to the PQ Media Alternative Out-of-Home Media Forecast 2007-2011, alternative out-of-home advertising is one of the fastest-growing segments of the media industry, expanding at double-digit rates every year from 2001 to 2006 and posting compound annual growth of 22.6%.

These out-of-home media are distinguished by the use of innovative technology and concepts, such as video advertising networks and digital billboards, to connect with more elusive consumers in captive environments, including retail, transit, cinema and office locations.

Patrick Quinn, President and CEO of PQ Media, said "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. Unlike its mass media peers, alternative out-of-home advertising is impervious to channel or web surfing and is immune to audience fragmentation."

The growth of alternative out-of-home media far outpaced that of the overall advertising industry as well as the total out-of-home media sector, which was one of the fastest-growing advertising sectors in the 2001-2006 period. The overall advertising industry expanded 6.4% in 2006, while total out-of-home advertising increased 10.6%, amplified by the 27.0% growth in alternative out-of-home media, according to the report.

Among the key trends PQ Media cites as driving the rapid expansion of alternative out-of-home media are:

• The perception among advertisers that these media provide high engagement, targeting options, proximity to point-of-sale, measurable impact and cost effectiveness
• Exposure to and recall of these media growing as Americans spend more time commuting to work, walking in urban areas, waiting in transit hubs, and shopping at retail outlets
• Research suggesting that the vast majority of consumers view alternative out-of-home media as favorable and educational
• New technology enabling companies to launch digital advertising platforms that generate higher revenues than the conventional formats they replace

The PQ Media Alternative Out-of-Home Media Forecast 2007-2011, says the video advertising networks is the largest subsegment of out-of-home media, accounting for 60% of total spending, led by companies like National CineMedia, Premiere Retail Networks and Captivate Network. Spending on video advertising networks & screens grew 28.0% in 2006 to $1.01 billion, with high double-digit growth in all four markets: in-theater, in-office, in-store and in-transit.

Digital billboards & displays is the fastest-growing subsegment, as spending soared 55.4% in 2006 to $233.2 million, the report says. Each of the four markets; at-road, at-retail, at-transit and at-events, expanded at accelerated rates and is fueled by companies such as Lamar Advertising, Clear Channel Outdoor, and Reactrix Systems.

Ambient advertising, also called place-based media, increased 14.1% in 2006 to $446.4 million, according to the PQ Media Alternative Out-of-Home Media Forecast 2007-2011. The double-digit growth in alternative ambient advertising was driven by leaders like Floor Graphics, Montage Billboards, and Alloy Media + Marketing.

Alternative Out-of-Home Media Spend, 2001-2006 ($ Millions)
Segment	2001	2002	2003	2004	2005	2006	CAGR
Overall % Growth	$607.5	$719.6	$874.1	$1,057.4	$1,327.5	$1,685.5
		18.5%	21.5%	21.0%	25.5%	27.0%	22.6%
Video Ad Networks/Screens % Growth	$324.5	$396.9	$498.3	$612.5	$786.1	$1,005.9
		22.3%	25.5%	22.9%	28.3%	28.0%	25.4%
Digital Billboards/Displays % Growth	$43.9	$56.7	$74.9	$102.0	$150.1	$233.2
		29.2%	32.1%	36.2%	47.2%	55.4%	39.7%
Alternative Ambient Ads % Growth	$239.1	$266.0	$300.9	$342.9	$391.3	$446.4
		11.3%	13.1%	14.0%	14.1%	14.1%	13.3%
Source: PQ Media

Quinn concluded that, "Americans spend twice as much time outside their homes and workplaces today than they did just a few decades ago... Digital technology and creative positioning enable alternative out-of-home media to stay in tune with today's fragmented and fast-paced consumer market"

Special Note:

The Alternative Out-of-Home Media (AOOH) sector includes advertising vehicles developed or upgraded over the past decade through new technology and methods in an effort to target more mobile and captive demographics in less cluttered locations outside the home. The AOOH media sector is composed of three major segments: video advertising networks & screens, digital billboards & displays, and alternative ambient advertising, also known as placed-based media. The AOOH segment does not include traditional static billboards, posters, furniture, point-of-purchase displays, sampling, coupons, business-to-business promotional products, event marketing, sponsorships, word-of-mouth marketing, guerilla marketing, broadcast radio, satellite radio, or consumer digital and wireless media devices.

For more information, please visit PQMedia here.