| Source: ReportLinker ReportLinker
New York, July 04, 2022 (GLOBE NEWSWIRE) — Reportlinker.com announces the release of the report “Global Digital Out-of-home Advertising Market Size, Share & Industry Trends Analysis Report By Format, By Vertical, By Regional Outlook and Forecast, 2022 – 2028” – https://www.reportlinker.com/p06289235/?utm_source=GNW
Since data is displayed on digital screens in real-time, digital out-of-home commercials give unique and original material, which becomes more interactive and creative. This feature improves the visibility of digital displays. As the desire for interactive commercials among consumers grows, so does the adoption of digital out-of-home advertising, propelling the market forward.
Developed countries continue to dominate the industry, with the highest screen penetration, while demand in underdeveloped countries is growing. The rise in urban population and economic development are contributing to the growing demand. Because of the expansion in the urban population, there has been an increase in spending power, and as a result, firms are heavily targeting those locations to increase their penetration. The Asia-Pacific region has the largest middle-class population, and the region’s economic expansion is expected to stimulate advertising spending.
Furthermore, the money spent on advertising has been steadily increasing. For example, the United States of America led the list, followed by China and Japan. When it comes to ROI per screen, the United States of America has been ranked first. Advertisers are also developing more imaginative and interactive street furniture, which allows them to engage their audiences while simultaneously collecting data about them.
Brands can utilize DOOH to effectively advertise products even if they are not equally available everywhere with the right technological partner. For example, if a company wants to launch a new frozen pizza line – initially in a few cities, then nationally – it could utilize DOOH to target each market individually. One might need a campaign stating that the pizzas are currently available, while another might need to emphasize that the new range will be available shortly. Technology allows for fast adjustments based on different locales, DMAs, zip codes, or even audiences, ensuring that overall messages are received locally. A planning process that used to take weeks may now be completed in minutes, with success tracked using indicators like attributable sales and foot traffic.
The COVID-19 outbreak has had a severe impact on the digital out-of-home advertising industry. In reaction to the pandemic and the serious health threat posed by the virus, governments around the world instituted quarantines, lockdowns, travel bans and restrictions, and work-from-home directives to try to contain the virus. These measures have had a severe impact on the digital out-of-home advertising industry’s workforce and operations, as well as the behaviors of advertising clients and consumers and the operations of raw material suppliers. Various markets have been negatively impacted by the COVID-19 pandemic as a result of the impact on companies’ operating profits.
Market Growth Factors
Widespread Adoption of Displays and Popularity of the Digital Medium
The increased use of commercial displays in the advertising industry is expected to accelerate the growth of the digital-out-of-home market. The advent of relatively low-cost digital displays can be credited for the growth. The industry is expected to benefit from increased usage of virtual reality and augmented reality, cloud-based platforms, and the growing demand for IoT. In addition, combining DOOH with VR and AR allows businesses to increase the engagement and reach of their initiatives. Cloud-based solutions offer benefits such as flexibility, connection, and improved content management, which are fueling industry demand.
Combination of DOOH and User Generated Content (USG)
On DOOH, user-generated material leaves a long-lasting impression on the consumer. It provides the kind of relatability that consumers look for in popular advertising. A corporation can efficiently show adverts with the goal of increasing recognition, exposure, and engagement. Placing DOOH in areas where passersby have more idle time, such as bus stops, train stations, or travel mediums, can increase the number of people who see the advertisement. Almost every brand employs expert model airbrushing. The consumer would be enticed to interact more if they saw a peer as a brand’s advocate. Not only that, but it will be relatable and memorable to them.
Market Restraining Factors
DOOH is Expensive to Implement
Along the highways, there are numerous billboards. Drivers are more focused on the road than on advertisements on the side of the road. Many billboards are only seen for a second or two at most. Thus, the biggest problem with digital out-of-home advertising formats is their fleeting nature. Companies have to pay large sums of money for their advertisement to be looked at for only seconds on average. As a result, the cost of advertising per exposure may be higher than with other approaches. This factor makes it somewhat unfeasible for small and medium-sized enterprises. Billboards cost more per panel than other types of digital out-of-home advertising, such as shopping center 6-sheets or post office screens.
Based on Format, the market is segmented into Billboards, Transit & Transportation, Street Furniture, and Place-based Media. The transit and transportation segment procured a substantial revenue share in the digital-out-of-home advertising market in 2021. The growing usage of LCD screens in taxis, buses, and trains to display several adverts on a single screen is propelling the market forward. Furthermore, consumer preferences for public transportation such as buses and trains for everyday travel are a crucial driving force for market expansion. Furthermore, the increasing use of digital transit and transportation advertising for product branding and awareness is likely to propel market expansion.
Based on Vertical, the market is segmented into Real Estate, Financial Services, Government, Restaurants, Media & Entertainment, Automotive & Transportation, Retail, and Others. The real estate segment acquired the highest revenue share in the digital out-of-home advertising market in 2021. The construction industry’s increased spending on outdoor advertising to showcase their properties and generate brand awareness is propelling the market growth. Furthermore, the growing popularity of digital out-of-home advertising for real estate marketing is speeding market growth due to the high conversion rate of the commercials. Additionally, digital outdoor advertising allows real estate brands to be more creative with a contextually relevant and timely message, which is expected to drive segment growth during the forecast period.
Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa. North America acquired the highest revenue share in the digital out-of-home advertising market in 2021. This is due to increased urbanization and increased consumer awareness of the product’s branding. The North American region is one of the most economically developed regions, and thus, there is adequate infrastructure for the boom of DOOH in the region. The Times Square area in New York of the US is one of the most premium examples of DOOH done well. In addition, rising investment in digital out-of-home advertising is likely to fuel regional market growth.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include JCDecaux Group, Ströer SE & Co. KGaA, Clear Channel Outdoor Holdings, Inc., OUTFRONT Media, Inc., oOH!Media Limited, Broadsign International, LLC, Focus Media Information Technology Ltd., and Global Media Group Services Limited.
Strategies Deployed in Digital Out-of-home Advertising Market
May-2022: JCDecaux entered into a partnership with Yahoo, an American web services provider. The partnership is expected to make planning, targetting, deriving insights, and measuring campaigns across screens easier for marketers. The partnership enabled brands and marketers to re-engage consumers exposed to JCDecaux’s programmatic and direct DOOH advertising throughout multiple channels like video, display, native, audio, and mobile.
Feb-2022: oOh!media entered into a partnership with Qantas, Australia’s largest airline by fleet size, international flights, and international destinations. Under the partnership, advertisers were connected to premium Qantas customers across their entire travel journey. The partnership enabled oOh!’s advertising partners to seize the attention of premium Qantas business professionals and leisure travelers as they move throughout Australia’s airports, through the terminals, into the Qantas lounges, on the aircraft, and when they land. Thus it created chances for regular messaging at each level of the journey and for extended periods of time.
Feb-2022: Clear Channel formed a partnership with Broadsign, the leading out-of-home marketing platform. Under the partnership, both companies allowed media buyers to tap into Clear Channel’s 3000+ digital Out of Home (OOH) screens in the UK via Clear Channel LaunchPAD. Clear Channel’s premium UK OOH inventory was made available through more than 30 omnichannel and OOH demand-side-platforms (DSPs) integrated with the Broadsign Reach supply-side-platform (SSP).
Jul-2021: Outfront Media completed the acquisition of Icewerx Consulting, a fast-growing digital outdoor provider in Canada. The acquisition solidified Outfront’s dominant presence in the Edmonton market, adding key assets to OUTFRONT’s existing inventory in this top five market.
Jun-2021: JCDecaux released its programmatic offering. JCDecaux’s digital inventory in cities and airports was made available for programmatic buying via VIOOH, a global digital out-of-home marketplace. VIOOH’s platform put the advertising buyers and sellers together in a premium marketplace and as a result, made JCDecaux France’s digital out-of-home (DOOH) inventory conveniently accessible. This initiative connected the outdoor advertising sector to the programmatic digital ecosystem.
Apr-2021: Clear Channel released Clear Channel LaunchPAD, a dedicated new programmatic offering. The product helps connect digital buying channels with the company’s vast Digital Out of Home (DOOH) inventory.
Mar-2021: Ströer Group entered into a partnership with Hivestack, one of the world’s leading programmatic digital out-of-home (DOOH) adtech companies. Under the partnership, Ströer continued to use Hivestack’s Ad Server, SSP, and Storefront products for an extended period of four years.
Feb-2021: Outfront Media formed a partnership with Axios, a media company that delivers vital, trustworthy news, and analysis. The partnership was launched in Boston in December and was live on digital displays throughout the NYC area in February. Under the partnership, Axios’s editorial content was featured on digital billboards and transit displays throughout cities in the US.
Jun-2020: JCDecaux formed a partnership with S4M, the drive-to-store platform, allowing advertisers to integrate their Out-of-Home (OOH) and mobile advertising activations to propel store footfall. Under the partnership, an offer was released that allowed advertisers to buy drive-to-store campaigns both on JCDecaux’s OOH network, and on mobile using S4M’s platform. The offer was made available only in 8 markets globally, including the USA, France, Italy, Spain, Belgium, Netherlands, Singapore, and Mexico.
Scope of the Study
Market Segments covered in the Report:
• Transit & Transportation
• Street Furniture
• Place-based Media
• Real Estate
• Financial Services
• Media & Entertainment
• Automotive & Transportation
• North America
o Rest of North America
o Rest of Europe
• Asia Pacific
o South Korea
o Rest of Asia Pacific
o Saudi Arabia
o South Africa
o Rest of LAMEA
• JCDecaux Group
• Ströer SE & Co. KGaA
• Clear Channel Outdoor Holdings, Inc.
• OUTFRONT Media, Inc.
• oOH!Media Limited
• Broadsign International, LLC
• Focus Media Information Technology Ltd.
• Global Media Group Services Limited
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Read the full report: https://www.reportlinker.com/p06289235/?utm_source=GNW
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