-By Katy Bachman

Digital out-of-home advertising will reach $2.2 billion this year, hitting $3.7 billion by 2013.
According to a BIA/Kelsey forecast released Wednesday (Nov. 4), the segment, which includes digital billboards and place-based networks, will grow at an annual rate of 13.5 percent, outpacing traditional out of home’s 1.4 percent growth rate.

Traditional out-of-home is forecast to inch up from $4.4 billion this year to $4.6 billion in 2013. In 2010, DOOH will increase 9 percent to $2.4 billion, while traditional will dip 2 percent to $4.3 billion.

Unlike the traditional segment, which is heavily concentrated with three firms commanding 85 percent of traditional billboard revenue, the DOOH segment is highly fragmented among more than 2,100 companies, making the business ripe for consolidation.

“DOOH must get easier to plan, buy and measure in order to reach scale. With consolidation, partnerships and interoperable platforms, we see the buying process becoming more integrated, which will spur growth,” said Rick Ducey, chief strategy officer for BIA/Kelsey.