Digital to account for all outdoor ad growth

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Global spending on digital out-of-home advertising (DOOH) is expected to grow 10.1 per cent each year between 2018 and 2021, accounting for the entirety of growth in the out of home (OOH) market, according to a new WARC report.

The latest Global Ad Trends focuses on digital out of home, defined as video content and/or digital signs located in high-traffic public locations such as high streets, airports, bus shelters, subways and malls.

It reports that digital’s share of total global OOH adspend is expected to hit 37.3 per cent – or $14.6 billion – in 2018 (up from 34.8 per cent in 2017, 32.4 per cent in 2016 and 22.7 per cent in 2012).

Spending on traditional sites will start to decline from next year while spending on DOOH will continue to rise as major providers like JC Decaux and Clear Channel accelerate their investment in digital sites which give advertisers the opportunity to combine data-driven targeting with powerful, dynamic creative.

Alongside the growing penetration of digital sites, growth in the value of DOOH spending is being driven by the higher cost-per-thousand (CPM) the format commands, the report adds.

The sector has seen a surge in interest, as digital has unlocked new possibilities – search is a key benefactor when included in the mix with OOH, for example. Mobile click-through rates (CTRs) increase by up to 15 per cent when supported by OOH, and research has indicated that 46 per cent of US consumers used a search engine as a result of seeing an OOH ad.

Widespread use of smartphones also enables marketers to tap into location data for better targeting and measurement, although there are privacy concerns around that.

James McDonald, Data Editor, WARC, observed that: “The combined power of digital out of home and mobile location data can be used to add greater targeting capabilities to a broadcast medium, serving programmatically-traded creative by the hour to the right people, in the right place, at the right time. This is an enticing prospect for advertisers looking to leverage digital’s strengths without the risks of ad blocking, fraud, and negative adjacency.”

A related development is a growing consumer preference for streaming audio which has attracted new players: Global, UK’s largest commercial radio group, recently moved into the DOOH sector by acquiring Exterion, Primesight and Outdoor Plus, gaining 30 per cent in market share.


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