Research & Data 2 minutes, 12 second read Just.Marketing
A global study among senior executives and CEOs has found that adspend in TV and newspapers will shift to Digital Out of Home (DOOH) in the next 12 months.
The study by Alfi, an AI enterprise SaaS advertising platform, also showed that the entertainment and media sector will see the biggest increase in DOOH spend over the same period.
Investment by sector
The global study found 66% believe entertainment and media will see rapid increases in the use of DOOH followed by 62% who point to the Government campaigns sector and 61% who highlight the retail industry.
The finance industry will also begin to increase its use of DOOH advertising with 58% forecasting this sector will see the biggest rise, which was followed closely by 52% who believed telecoms would lead the way.
As many as 57% of the 101 executives questioned, who were based in the UK, US, France, Germany, Canada, Australia and the UAE, believe advertising in TV will be the hardest hit – losing out on investment as budgets shift in these sectors towards DOOH. Meanwhile, 53% believed newspapers would suffer the greatest loss of revenue as a result of the trend.
Just 15% of executives questioned in the research believe Out of Home budgets will be diverted to DOOH. Only 12% believe online advertising will suffer as a result of the switch to DOOH.
Innovation by brands in the DOOH space has been lacking in recent years with creative failing to take full advantage of its dynamic capabilities. But features such as its cost-effectiveness, flexibility and ability to be made relevant to each unique environment have attracted growing investment.
Digital ad investment in public spaces across high and low-income countries is one of the drivers expected to increase market share for DOOH.
Entertainment and media to use DOOH
Commenting on why entertainment and media sectors were forecast to see the biggest rise in investment, Peter Bordes, Interim CEO, Alfi, says, “Entertainment and media is ideally suited to DOOH as advertisers can make full use of the technology to provide additional content and the same applies to Government campaigns and the retail sector.”
He adds, “Advertising budgets are increasing but the rise of DOOH does mean other areas will potentially suffer as money is moved to where advertising can be more effectively measured and analysed.”
The findings are broadly in line with other research into the expansion of DOOH investment, including research in June that projected investment in the US is expected to expand at a compound annual growth rate of 10.67% from its USD 5.21bn in 2022 to USD 8.65bn in five years.