Global Digital OOH Market Size and Share Outlook - Forecast Trends and Growth Analysis Report (2024-2032)

Digital OOH Market Growth

Digital OOH advertisements are placed at airports, medical waiting rooms, bus shelters, railway stations, retail stores, shopping malls, movie theatres, and major roads. Advertisers are using digital displays, motion graphics, projectors, graphics, and video content to target specific audiences with increasing internet penetration. This has culminated in the proliferation of physical and online marketing outlets worldwide. As a result, companies are gradually embracing such advertisements to sell their products in the market and boost the growth of digital OOH market.

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Key Trends and Recent Developments

Programmatic advertising, data analytical techniques and increased interactivity and engagement are a few factors propelling the digital OOH market dynamics and trends.

April 2024

VIOOH, a premium digital-out-of-home supply-side platform, with all its operations across the globe, announced its second programmatic media owner partnership in mainland China. VIOOH will enable real-time trading on local programmatic DOOH inventory in partnership with Beijing Top Result Metro Advertising Co., Ltd. Upon the launch, VIOOH will be offering prDOOH across metro audiences in the top two metro systems in China: Shanghai Metro and Beijing Metro.

Programmatic Advertising

The programmatic digital out-of-home is going to garner further ground within the digital out-of-home market, allowing purchase of ads in real time and automated, data-driven targeting. This is driving ad relevance, optimised inventory management, and dynamic content delivery against audience behaviour and environmental conditions.

Data Analytical Techniques

Digital Outdoor Advertising is now becoming a key trend in digital OOH market and also being integrated with mobile and data analytical techniques. This is to ensure that the delivery process of the advertisement is done in a contextual and personalised manner. Indeed, advertisers have the opportunity to apply their targets' location and mobile interaction in creating a focused campaign that is executed according to real-time factors and behavioural insights.

Increased Interactivity And Engagement

More and more, the market is clearly tending towards interactive displays: touch-sensitive screens, augmented reality, and others. These kinds of improvements increase viewers' engagement through immersive experiences and interactive content as a way to stimulate brand recall and consumer interaction with the advertising message, thereby boosting digital OOH market opportunities.

Digital OOH Market Trends

In the current business situation, the use of powerful in-transit marketing systems is critical due to the increased production of multiple tools and applications for user engagement. Digital OOH is a cost-effective platform for any product or service marketing and advertising, which are fuelling the global digital OOH market growth. Digital OOH uses real-time displays and live data streams to serve the public interest. The key factors hampering this market include variance in digital OOH marketing regulations such as content and volume across various regions, high advertising costs, and the lack of real-time and accurate information on consumption. The ability to build awareness and produce impressive results is easier through digital OOH as the internet has now gained popularity, thus, propelling the digital OOH industry growth.

Industry Outlook

Growing Investment in Digital Advertisement to Augment Demand for OOH Advertising.

In 2023, the United States of America led in global digital ad spend with an expenditure of $263.89 billion. This underlines the economic might to the U.S. digital market, big in size due to a high degree of e-commerce development, widespread internet penetration, and a large base of technological and advertising companies, with advanced digital platforms and data-driven marketing strategies.

Running closely at second was China, which ran at a high of USD 136.10 billion digital ad spend. The Chinese phenomenon is buttressed by the large population, rising internet user count, and, not to forget, the power of digital giants Alibaba, Tencent, and ByteDance. Growth in China's spending will act as a driver as mobile and social media continue to gain traction, heading at really swift speeds compared to all other nations in this region. This will be a key trend of the digital OOH market, propelling the global demand.

The United Kingdom followed with USD 32.66 billion in digital ad spending, indicating that it was the largest market in Europe. A strong market for digital ads in the UK should be supported by a mature online retail environment and relatively continued high spending on the country's digital platforms. Japan spent 21.20 billion US dollars on digital advertisements, underlining a country with more advanced technological infrastructure and strong e-commerce market, although far behind other major markets to the relatively slow adoption of technologies for digital advertising.

Germany spent $11.74 billion on digital ads, making it the largest market in mainland Europe. With such a huge industrial base and a huge investment in digital transformation, the country justifies this high digital ad spend. Under the same conditions of developed economies with high internet penetration and digitally developed infrastructures, the numbers for Canada and Australia are $10.77 billion and $10.52 billion, respectively. Such figures will be the main reason behind the augmented digital OOH demand growth.

France represented digital ad spending of USD 7.97 billion, depicting an increase in the digital focus, though currently it lags some big European markets like the UK and Germany. Digital ad spending in Brazil of USD 7.73 billion makes it the biggest market in Latin America, driven by increasing penetration in the internet and the rapid development of social media platforms. South Korea, on the other hand, recorded a digital ad spend of USD 5.81 billion, indicative of the country's tech-savvy nature plus a high level of consumption of digital media, particularly in the mobile and gaming sectors.

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Digital OOH Industry Segmentation

“Global Digital OOH Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

The industry can be broadly categorised based on format type into:

• Digital Billboards
• Video Advertising
• Ambient Advertising
• Others

The industry can be divided on the basis of its application sectors as:

• Indoor
• Outdoor

The industry can be divided based on end-use as:

• Automotive
• BFSI
• Entertainment
• Food and Beverages
• Personal Care and Households
• Retail
• Telecom
• Others

Based on region, the market is divided into:

• North America
• Latin America
• Europe
• Middle East and Africa
• Asia Pacific

Digital OOH Market Share

Digital Billboard Segment Is Anticipated To Gain Traction Owing To Dynamic Features

As per digital OOH market analysis, the digital billboards segment is likely to gain significant traction due to their high visibility, dynamic content capabilities, and flexibility. Unlike static billboards, digital billboards can display multiple ads and update content in real-time, making them more appealing to advertisers seeking to engage diverse audiences. Their ability to integrate with programmatic advertising and data analytics further enhances targeting and effectiveness. As advertisers increasingly prioritise data-driven and interactive approaches, digital billboards offer a compelling solution for reaching large audiences with relevant, timely messages.

What Drives the Growth of the Global OOH Market?

• Using OOH media for advertising can help get to a part of the audience that is unreached by digital media.
• The repetitive exposure can empower brand recall and efficiently enforce marketing messages.
• With the new age digital screens adopted in OOH advertising, the activity can afford more dynamic and interactive advertisements. 
• Programmatic buying integration in DOOH can provide a real-time optimization of campaigns by the advertisers due to audience data and engagement metrics, accelerating the digital OOH market growth.

What Challenges are Impacting the Global OOH Market?

• The OOH market lacks effectiveness and reach measures and is one of the largest weaknesses in the industry.
• OOH media usually calls for very high initial investments, especially in premium sites or large formats like billboards.
• OOH advertising, especially for outdoor advertisements, is open to damage from wear and tear, effects of weather, and easily being vandalised, which means it may require some additional expenses for repair.
• AR and VR innovations introduce new advertisement platforms that can be highly immersive and engaging.
• Economic downturns may lower industrial activity and investment, which injures the digital OOH market revenue over the time. 
• Emerging strict regulations on placement and content potentially lead to the unavailability of prime locations for advertisement and higher compliance costs.

What opportunities are driving the growth of the global OOH market?

• Obsolete static displays are being substituted for digital signs, billboards, and interactive displays, enabling advertisers to communicate more dynamic content.
• OOH is latching on to programmatic, growing in significance and providing advertisers with automated, data-fuelled buying and placement of ads.
• Smart city programs will see digital signage and potentially interactive kiosks doubling up as advertising media.
• According to digital OOH industry analysis, improvement in measurement technology is making OOH more potent.

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Digital OOH Market Regional Analysis

The digital OOH market in Asia-Pacific is likely to be a significant industry for OOH, driven by the rapid urbanisation, increasing infrastructure development, and growing focus on modern advertising solutions. Digital advertising technologies for brand display and engaging a tech-savvy consumer base form a significant part of investments by major metropolitan cities in the region. Opportunities for digital billboards and interactive displays arise in increasing numbers with rising smart cities and sophisticated public conveyance systems. DOOH solutions find increasing demand due to the growing adoption of digital technologies and economic growth in the Asia-Pacific region.

Competitive Landscape

Key players in the digital OOH market are scaling digital billboard networks using advanced technology, in a bid to move towards targeted advertising, optimise with data analytics, and form strategic partnerships to facilitate market reach and effectiveness for revenue.

JCDecaux SA, founded in 1964 and headquartered in Neuilly-sur-Seine, France, deals with a comprehensive range of digital out-of-home solutions. This will involve everything from digital billboards and transit displays to interactive kiosks within a global network. Their network is spread globally, providing high-visibility advertisement coverage in the heart of cities and transportation hubs.

Based in San Antonio, Texas, Clear Channel Outdoor Holdings Inc. is a company founded in 1901 that now deals with digital billboards, transit displays, and airport advertising. From high-impact and large-format screens, their digital OOH offerings are purposed to provide dynamic and targeted advertising in key cities across the globe.

Lama Advertising Company is based in Dubai, UAE, and was founded in 2005 as a provider of digital billboards and transit advertising across the Middle East. The firm offers leading high-visibility displays and digital innovation for regional markets and high-traffic areas.

Other key players in the digital OOH market report includes Outfront Media Inc, Daktronics Inc., Prismview LLC NEC Display Solutions Ltd., oOhmedia! Ltd., and Ströer SE & Co. KGaA, among others.

Global OOH Market Competitive Factors

• It is indeed an Oligopolistic market with a few major goliaths and many regional based players. So, there is competition in each market segment and regional markets.
• The companies which can invest in cutting edge technologies can offer better engagement, dynamic content updating, real-time updating based on data analytics for targeted advertisement purposes.
• Striking and memorable advertisements place companies in a good place for crowded urban environments.
• Cost-efficiency is an extremely important factor for both Out-of-Home providers and their clients as well as companies capable of offering high quality at competitive prices are most likely to both attract and, in the long-term, also retain clients and boost the digital OOH industry revenue. 
• Sustainability initiatives also tie in with broader corporate social responsibility goals, which enhances a company's competitive positioning.
• Companies that offer great customer service, clear communication, and personalised solutions are most likely to retain their clients and source referrals from them.