Research from Alfi reveals 95 per cent of advertising executives expect the Digital Out of Home (DOOH) advertising sector to grow over the next two years, with 51 per cent anticipating dramatic expansion.
At the end of 2020, the DOOH advertising market was estimated to be worth $41.06 billion, but by 2026, nearly two out of three (65 per cent) advertising executives interviewed predict this will rise to between $50 billion and $55 billion. A further 16 per cent expect it to be worth between $55 billion and $60 billion, and 14 per cent estimate it will be even bigger.
Out-of-home (OOH) advertising is traditional (i.e., non-digital and non-programmatic) outdoor advertising, targeting consumers when they are in public places, commuting to work, or for example in specific commercial locations. Digital out-of-home (DOOH) advertising is OOH powered by technology that provides a number of features including tracking, retargeting, personalising of adverts, and greater attribution and measurement of campaigns.
Alfi, an AI enterprise SaaS platform company powering computer vision with machine learning models to allow content publishers and brand owners to deliver interactive, intelligent information without violating user privacy commissioned research with senior advertising executives across the US, UK, France, Germany and Asia.
In terms of how advertising spend on DOOH will change between now and 2026, 50 per cent of respondents anticipate it will rise dramatically and a further 40 per cent expect it to increase slightly.
The main reason for this growth is that there will be a bigger general spend on digital advertising – the view of 66 per cent of senior advertising professionals interviewed.
This was followed by 62 per cent who said advances in technology mean that digital out of home advertising will be able to provide even more analysis around campaigns run on them. Other reasons given for the anticipated increased spend include the general growing focus on evaluating advertising campaigns and the strength of the DOOH market here, and a rapid increase in the number of advertising digital screens being rolled out.
Kevin Buchler, Vice President- UK Operations, Alfi said: “There is little doubt that the DOOH advertising market is enjoying strong growth. Society, as a whole, is becoming increasingly digitised, and the advertising sector is looking to make greater use of technology to deliver stronger more personalised and effective campaigns, and greater transparency around results. The unique qualities of DOOH advertising in meeting these trends helps to explain why the sector is enjoying such strong growth.”