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A survey of more than 100 senior advertising professionals in the UK, US, France, Germany and Asia has found that almost half believe Digital Out of Home (DOOH) advertising spend is set to soar as a portion of Out-of-Home (OOH) investment over the next four years.
With DOOH accounting for around 28.3% of OOH spend in 2019, 48% of respondents to the survey, by AI enterprise SaaS advertising platform Alfi, believe it will reach 33% by 2025.
One in 20 think OOH will account for more than 40% of spend.
The global DOOH advertising market was worth approximately $41.06 billion in 2020, and, by 2026, 81% of surveyed advertising executives predict it will rise to between $50 billion and $60 billion.
Reflecting a broad trend
The research is in broad agreement with other findings. Stefan Jansen, Product Director, Mindshare UK, says, “Our latest GroupM ‘This Year, Next Year’ forecast had the global OOH market at $49bn by 2026 so I would tend to agree with the majority from the survey – 65% estimating in the region of $50bn-$55bn.”
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The attraction of DOOH is being driven by greater integration of digital technologies in people’s lives and the ways in which they interact with advertisers. The arrival of yet more Smart Cities offering lightspeed connectivity and mountains of data on consumers are also key drivers.
Stefan says, “As Smart Cities start to become a reality, the volume and richness of this data on which to make buying decisions increases vastly; with a lot of the signals around footfall, businesses, traffic, and the environment – along with the interaction between these things – particularly relevant for OOH advertising.
“This data flow will also help to close the loop for optimisation – including dynamic creative – and measurement to further prove the effectiveness of OOH in the connected age.”
DOOH equals variety
Among the reasons behind the expected greater share of investment in DOOH cited in the survey, 56% highlighted the importance of the added variety DOOH advertising offers, which they expect to increase dramatically between now and 2024.
Fifthy-three percent said the same about the campaign relevancy it delivers. Half (51%) said they expect the benefit of DOOH having fewer restrictions such as no ad-blockers, which personal devices can have, to increase dramatically.
“DOOH advertising is one of the fastest growing and most dynamic trends in the advertising sector and it will only intensify in the coming months and years,” said Paul Pereira, CEO of Alfi.
“Its ability to deliver high impact and tailored campaigns, with comprehensive and detailed reporting means more advertising executives are looking to use it in their strategies and programmes.”
With OOH revenues almost halving during the covid-19 lockdowns of 2020, agencies like MindShare are expecting “strong, double-digit growth” in the next couple of years.
“We are expecting steady growth from then onwards with OOH being the fastest growing media channel outside of pure-play digital, aided by ongoing investment in technology and infrastructure which, in turn, creates new opportunities for advertisers,” adds Stefan.
He adds, “I believe that large advertisers will still recognise the traditional strengths of OOH: the mass-reach and brand fame that ‘one-to-many’ advertising delivers. But as the move to ‘one-to-few’ happens – in a way that is respectful and considered when it comes to consumer privacy – it opens up opportunities for existing spenders and new entrants, including ‘digital native’ brands, to tap into an increasingly effective media channel.”