NSW has banned ads with moving or video images within sight of roads, citing them as a distraction to drivers, but the Outdoor Media Association said Queensland was testing new digital outdoor platforms and NSW was close to doing so.
Nir Hadad, head of independent outdoor operator Octopus, which has rolled out a suite of LED-screen outdoor advertising sites in Victoria, said local and state government fears that digital signage could cause accidents was unfounded and he hoped that NSW would soon approve such displays.
Mr Hadad said Octopus had conducted research in Victoria that had shown digital signs did not lead to an increase in accidents.
"Digital advertising in general is growing around the world," Mr Hadad said.
"In Sydney, part of the problem is that obviously they have taken a conservative view. I think there is a lot of change happening all over the world in the way people look at outdoor and the way people are looking at interactive."
The OMA industry body is drafting new digital advertising guidelines it would like to see adopted in NSW.
OMA chief executive Charmaine Moldrich said that the final hurdle for digital ads was dwell times. OMA wants signs to be able to change every eight seconds but the authorities want 90 seconds.
The government was also seeking different dwell frequencies for different roads depending on the time of day, a request Ms Moldrich said made the supporting algorithms unworkable.
"It is holding us back from investment," Ms Moldrich said.
"Queensland is running a trial program allowing a couple of digital platforms for APN, and in NSW we are close," she said.
In Victoria a number of major sites featuring dynamic digital advertising have been launched by different companies, including a massive digital structure on the top of Melbourne's famed Young & Jackson's Hotel, run by APN outdoor.
"We are looking at all sorts of innovations now," Mr Hadad said. "Bluetooth, putting up multiple creatives, live updates.
"There is also the cost factor - it is better through digital."
Mr Hadad said such innovation had kept the outdoor industry on a growth trajectory while events such as the investment by private equity in rival OohMedia, and the subsequent purchase of Ten's Eye Corp outdoor operations by Ooh, had put the industry in the media spotlight.
He did not see Octopus as a takeover target but said the privately held company would continue to invest in upgrading its existing sites to digital, as well as acquiring more sites.
The ability to develop digital sites in Sydney in particular was crucial to the growth of the business and Mr Hadad predicted that within five years the outdoor industry would be largely digital in nature.
"Right now the challenge will be always to get approval," he said.
"In two to three years' time what you are going to see is that digital is going to grow because of demand, but also because businesses are looking to lower costs."
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