Digital Out-Of-Home Advertising Market Soar to 60 Bn by 2033

Introduction

According to Market.us, The Global Digital Out-Of-Home Advertising Market is projected to reach a value of USD 60 billion by 2033, increasing from USD 19 billion in 2023. This growth reflects a robust CAGR of 11.8% during the forecast period from 2024 to 2033. The North America region dominated the market, contributing to the largest market share of 36% in 2023, driven by factors such as resource availability, funding, government support, and other favorable conditions.

Digital Out-Of-Home (DOOH) advertising refers to digital media used for marketing purposes outside of the home. This form of advertising typically involves digital displays that are found in various public locations, including transit areas, commercial spaces, and on major roadways. The content can be dynamically changed and updated remotely, offering advertisers flexibility and timeliness in their campaigns. The technology powering DOOH includes, but is not limited to, LCD, LED, and projection to display content such as digital images, video, and information.

The market for DOOH advertising has seen significant growth due to its ability to reach consumers outside their homes where traditional media cannot. The flexibility and technological advancements of DOOH allow for real-time content updates and audience targeting, making it a potent tool for advertisers. The rise in urbanization, improvements in infrastructure, and increasing digitalization of public spaces worldwide are key drivers for this market.

Additionally, the integration of advanced technologies such as facial recognition, real-time audience measurement, and interactive displays enhances viewer engagement and allows for more personalized advertising, further propelling market growth. Advertisers value DOOH for its ability to reach large audiences in specific locations with tailored, impactful visual messages. The market is also benefiting from the incorporation of interactive elements and audience measurement technologies, which enhance engagement and provide valuable insights into ad performance and viewer demographics.

Demand for DOOH advertising is driven by advertisers seeking innovative ways to capture audience attention and engage with them in various out-of-home settings. The effectiveness of DOOH advertising in generating high visibility and recall rates has made it increasingly popular among brands and marketers. The trend towards digitalization, combined with the high penetration of mobile devices, enhances the effectiveness of DOOH campaigns through mobile interactivity. The ability to connect DOOH campaigns with mobile and online marketing strategies amplifies their reach and impact, meeting the demands of modern, connected consumers.

There are numerous opportunities within the DOOH advertising market, particularly through the use of data analytics and connectivity. By leveraging consumer data, advertisers can optimize their content based on real-time audience analytics and environmental factors. The convergence of DOOH with mobile and online channels offers a seamless cross-platform advertising strategy that enhances consumer engagement and campaign measurability. Furthermore, the expansion of programmatic advertising platforms in the DOOH space is streamlining the buying and selling process, making DOOH advertising more accessible and efficient for marketers.

The DOOH advertising market is expected to continue its growth trajectory, driven by advancements in display technologies, increased advertiser confidence, and more sophisticated audience targeting capabilities. As urban environments become more digitized, opportunities for placing DOOH displays grow, particularly in emerging markets where digital infrastructure is expanding rapidly. The ongoing evolution of smart cities and the integration of Internet of Things (IoT) technologies provide a robust infrastructure for the expansion of DOOH advertising, making it a crucial component of future urban advertising strategies.

Key Takeaways

• The Global Digital Out-Of-Home (DOOH) Advertising Market is projected to reach a valuation of USD 60 billion by 2033, up from USD 19 billion in 2023, growing at a compound annual growth rate (CAGR) of 11.8% during the forecast period from 2024 to 2033.
• In 2023, North America held a dominant position in the global DOOH advertising market, accounting for over 36% of the market share, with revenues amounting to USD 6.98 billion.
• The Billboards segment led the market in 2023, capturing more than 42% of the total market share.
• Additionally, the Retail segment maintained a significant market presence in 2023, holding more than 30.6% of the overall market share within the DOOH advertising sector.

Digital Out-Of-Home (DOOH) Advertising Statistics

• In 2023, more than 4 out of 10 marketers purchased Digital Out-Of-Home (DOOH) campaigns directly, and 3 out of 10 used programmatic buys.
• Programmatic Digital Out-Of-Home (prDOOH) campaigns accounted for 57% of all DOOH campaigns in 2023.
• 62% of consumers noticed digital billboards, enhancing engagement through DOOH ads based on metrics like location, weather, and contextual targeting.
• Post-pandemic, DOOH gained popularity, with 71% of consumers showing increased interest in walking around their town or neighborhood, making DOOH highly visible.
• DOOH advertising spends less than online advertising. For example, Alfi‘s CPM ranges between $1.50 and $5.21, while Facebook’s average CPM exceeds $14.
• Global advertisers plan to increase their ad spend by 31% over the next 18 months, with 33% shifting budgets from other digital channels to prDOOH, and 13% creating new budgets specifically for prDOOH.
• Projections for DOOH campaigns show 13.2% year-on-year growth in 2023, with the global market reaching $11.5 billion. DOOH is expected to represent 29.4% of global Out-Of-Home (OOH) spend, up from 17.8% in 2020.
• Over the next five years (2024-2029), the DOOH market is forecasted to grow at an annual rate of 5.18%, reaching a market volume of $24 billion by 2029.
• In 2024, the average DOOH spending per capita is projected to be $2.41. The United States is expected to lead, with a projected market volume of $5.277 million.
• DOOH ads will account for 31.4% of all US out-of-home ad spending this year, reflecting a strong recovery to pre-pandemic levels.
• 33% of US advertisers are reallocating budgets from other digital channels to DOOH.
• The EMEA region’s DOOH market ad spending is expected to reach $3.89 billion in 2024.
• Exposure to premium DOOH, featuring large, high-quality screens, increases brand trust by 13% compared to brands with no exposure.
• Contextually relevant content on DOOH screens, triggered by time, weather, or live updates, boosts ad effectiveness by an average of 17%.
• 55% of Gen Z respondents are drawn to dynamic billboards, making this a valuable demographic target for DOOH campaigns.
• 52% of viewers engage in smart device actions, such as visiting a website or making a purchase, after seeing a DOOH ad.
• 85% of adults look at OOH ads at least sometimes, and 65% take action like a store visit or social media post after seeing a DOOH ad.
• 49% of consumers noticed digital street-level OOH advertising in the past month.
• 62% of viewers engaged in mobile actions after seeing a digital street-level ad, including visiting websites, scanning QR codes, or making purchases.
• During the pandemic, 38% of consumers used OOH ads for COVID-related updates, and 23% found out about promotions or offers via OOH ads.
• Additionally, 23% of consumers used OOH ads to learn something new, and 20% discovered updates to business hours or services.

DOOH Ad Spending by Region

Source:eskimi.com

Emerging Trends

• Programmatic Advertising Expansion: The DOOH space is seeing a significant shift towards programmatic advertising, which is expected to become mainstream. This trend is driven by the benefits of real-time bidding and broader access to premium inventory, enhancing the efficiency and scope of campaigns​.
• Integration with the Metaverse: DOOH is beginning to bridge into virtual environments like the metaverse, offering new realms for interactive and immersive advertising experiences. This trend is propelled by the adoption of technologies that connect digital billboards with virtual worlds, enhancing brand engagement in innovative ways​.
• Sustainability Focus: More DOOH campaigns are incorporating eco-friendly practices, such as using screens powered by renewable energy and emphasizing recyclable materials, reflecting a broader commitment to environmental responsibility​.
• Enhanced Data Analytics: Advanced data analytics are increasingly employed to optimize DOOH advertising. This includes using data for precision targeting, audience behavior analysis, and the integration of AI to refine campaign strategies and measure effectiveness more accurately​.
• Creative and Interactive Formats: There is a rise in the use of dynamic and interactive formats within DOOH advertising. These include anamorphic 3D videos and audio-integrated OOH ads, which create more engaging and memorable experiences for consumers.

Top Use Cases for DOOH Advertising

• Retail Promotions: Retailers are leveraging DOOH for dynamic advertising that promotes in-store specials or events, directly influencing consumer behavior at points of sale or high-traffic areas like shopping malls and urban centers.
• Public Information and Awareness: Governments and NGOs are using DOOH for public information campaigns, from health advisories to community events, benefiting from the wide reach and visibility of digital billboards.
• Event Promotion and Engagement: Event organizers utilize DOOH to promote concerts, sports, and other live events, enhancing visibility with timely and geographically targeted messages that attract attendees.
• Brand Launches and Rebranding Campaigns: Companies launching new products or undergoing rebranding initiatives are adopting DOOH to broadcast their campaigns widely, leveraging high-traffic locations to maximize brand exposure.
• Interactive Campaigns and Consumer Engagement: Brands are creating interactive DOOH campaigns that engage consumers directly through QR codes, social media integrations, and real-time content updates, fostering a two-way communication channel and enhancing consumer engagement.

Major Challenges

• Technological Adaptation: The rapid evolution of technology, including 5G, augmented reality, and holograms, demands continuous upgrades and investments in DOOH infrastructure to stay competitive and relevant​.
• Sustainability Concerns: The DOOH industry faces increasing pressure to reduce its environmental footprint. This includes using energy-efficient technologies, minimizing light pollution, and incorporating renewable energy sources​.
• Data Privacy and Regulation: As DOOH becomes more data-driven, especially with programmatic DOOH, issues around data privacy and adherence to evolving regulations pose significant challenges​.
• Fragmentation in Measurement Standards: There’s a lack of uniform standards for measuring the effectiveness and reach of DOOH campaigns, which complicates performance assessment and comparison across different platforms and regions​.
• High Initial Investment Costs: The initial setup cost for DOOH technology, including high-resolution screens and interactive elements, can be prohibitively high, limiting entry for smaller players.

Top Opportunities

• Enhanced Consumer Engagement: Interactive and personalized advertising capabilities of DOOH, such as touchscreens and gesture-based controls, significantly enhance consumer engagement and experience, offering advertisers creative ways to capture attention and increase impact​.
• Integration with Mobile and Online Channels: The convergence of DOOH with mobile and online advertising platforms offers a seamless omnichannel experience, allowing for more cohesive and synchronized marketing campaigns that enhance customer retention and engagement​.
• Programmatic Advertising: Leveraging programmatic DOOH enables real-time bidding and ad placements, optimizing ad spend and targeting effectiveness. This flexibility allows for dynamic content changes based on viewer demographics and environmental factors like weather or traffic​.
• Expansion in Retail Media: DOOH is increasingly being integrated into the retail media networks, providing advertisers opportunities to engage consumers at crucial decision-making moments, especially in high-traffic retail environments like malls and grocery stores​.
• Data-Driven Campaigns: Improved data analytics and targeting technologies enhance the relevance and efficacy of DOOH advertisements. Advertisers can leverage first-party data and location analytics to deliver highly targeted and contextually relevant advertising messages​.

Recent Developments

• August 2023: Clear Channel Outdoor announced a partnership with Vistar Media to strengthen its programmatic digital out-of-home (DOOH) capabilities. This collaboration focuses on improving targeting and measurement for advertisers by leveraging Clear Channel’s extensive inventory across various markets. The partnership is expected to enhance the precision of campaigns and increase the effectiveness of ad placements.
• June 2023: JCDecaux SE secured a six-year exclusive advertising agreement for public transport in the greater Oslo region. The contract includes rights for all trams, buses, metro stations, and trains, featuring approximately 345 digital panels. This agreement will help JCDecaux increase its market share in Norway’s DOOH sector and expand its reach within the public transportation advertising space.
• Lamar Advertising Company: In July 2023, Lamar announced the launch of new digital billboards featuring Dynamic Creative Optimization (DCO) technology. This allows for real-time changes to ad content based on local factors such as time, weather, or traffic​.

Conclusion

In conclusion, the Digital Out-Of-Home (DOOH) advertising market is poised for sustained growth due to the convergence of technological advancements and evolving consumer behaviors. As advertisers seek innovative ways to captivate and engage audiences, DOOH advertising stands out for its ability to deliver targeted, impactful, and interactive content in real-time and at scale.

The integration of technologies such as AI, IoT, and connectivity with mobile devices opens new avenues for personalized and interactive campaigns, making DOOH an increasingly essential part of contemporary advertising strategies. With its proven effectiveness in reaching diverse audiences in dynamic urban environments, DOOH advertising is set to remain a key player in the advertising landscape, offering lucrative opportunities for growth and innovation.

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