You've been hearing all the buzz of digital growth over the past two weeks. When it comes to industry predications, December is always when the prognosticators release their forward-thinking articles, taking a stab at the next big trend. Their opinions are either verified or debunked in February, the month when analyst groups release research-backed predictions and reviews of the previous year.

This year's analyst reports pointed to some particularly optimistic data for the digital out-of-home and mobile sectors, pointing to a convergence of the two technologies that will offer marketers effective advertising options for the future. As these markets continue to grow, their scale and ability to reach captive and transient consumers at the point of decision will set them up well to serve as viable competitors to traditional media outlets.

Here are three growth areas that point to this trend:

1. Growth of digital place based networks

PQ Media's annual Global Digital Out-of-Home Media Forecast is always very anticipated each spring. This year, the firm found that U.S. DOOH operator revenue for digital place-based networks grew at an accelerated 15.1% in 2010 to $2.07 billion. PQ also projects network operator revenue to expand another 16.7% in 2011. http://www.pqmedia.com/about-press-20110222-dooh2011.html

This is good news for the DOOH industry, as the network operator landscape has been traditionally fragmented, making it difficult for brands and agencies to manage. Even after some consolidation in 2010, PQ Media found that there were still 220 network operators running 468 networks in the U.S. PQ expects more consolidation in the future, making it easier for agencies to work with networks and gain a national reach.

2. Growth of outdoor digital advertising and signage

PQ Media also included outdoor digital signage (encompassing digital billboards) in its report, saying that the overall revenue for that sector in the U.S. increased 15.4% to $532 million in 2010. As for 2011, the outdoor sector is predicated to grow at 18.8%.

The growth is further reinforced by metrics by the Outdoor Advertising Association of America released in late February. Digital billboards and outdoor digital signage are a subset of out-of-home advertising, which saw a slowdown in recent years attributed to the recession. 2010 was more positive, however. The OAAA said OOH advertising had a revenue increase of 4.1% in 2010, accounting for more than $6.1 billion. http://www.oaaa.org/press/news/news.aspx?NewsId=1200

3. Growth of mobile internet and smartphone data use

On another front, the mobile industry saw a big increase in the use of smartphones and data use in 2010 as more users began connecting to the Internet with their phones to access media. According to comScore, in December 2010 nearly 47 percent of mobile subscribers in the U.S. were mobile media users. This is largely powered by the popularity of smartphones which enable that access - In the U.S in 2010, 4 of the top 5 acquired devices in 2010 were smartphones, according to comScore.

http://www.comscore.com/Press_Events/Presentations_Whitepapers/2011/2010_Mobile_Year_in_Review

To complement, a February 2011 report from mobile consultancy Chetan Sharma showed that mobile data traffic grew 132%, increasing 2-5 times on major U.S. networks, with revenues from that traffic growing 23% to $55 billion. That’s predicted to go even higher this year, up 22% in 2011 to $67 billion.

http://www.chetansharma.com/usmarketupdate2010.htm

Convergence of the two technologies is the key to growth

When combined, digital out-of-home and mobile integration have the potential to present advertisers with an interactive advertising solution that can combat the stagnancy of traditional media. PQ Media says that this multichannel approach is what helped U.S. cinema networks, the world's largest and most consistently growing DOOH venue category, begin its decade-long ascent in the 2000s.

By using digital screens to initiate an interaction between a consumer and brand via a smartphone, advertisers can now access elusive target audiences in areas they normally couldn't. Shoppers can now be notified to receive coupons and loyalty discounts in-store at the point of decision. Waiting travelers can be told to access games, videos or articles in points of wait or points of transit.

Both DOOH and mobile technologies are on the rise, now it's time to make them work together.