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Inside Network
Home Marketing & Tech Advertising

The growth of Place-based Digital Out-of-Home Advertising

by Inside Network
June 18, 2020
in Advertising, Marketing & Tech
The groeth of DOOH

In order to determine the growth of Digital Out-of-home Advertising (DOOH), we will first have to look at when DOOH originated. OOH or the traditional outdoor advertising with posters and pamphlets is one of the oldest forms of advertising. The Egyptians already used this form of advertising on high stone obelisks to make the laws known to the public.

In the nineties the USA experimented for the first time with Digital-place-based-screens, these were actually ennobled TV screens that were used for this purpose. The first digital billboards were only installed in 2005. As of 2010, this concept has been embraced worldwide and this market is showing strong growth figures. If we delve a little deeper into the growth figures, there are two important things that are being looked at to determine the growth of DOOH.

Worldwide growth and expectations of DOOH

Let’s first look at the total expenditures worldwide from 2017 to 2027. First to 2017 until 2019 and then to 2027. Remarkably, the past few years have been characterized by a fairly stable growth of the DOOH market of about 10% to 11% per year. In the graph below, an annual growth rate of approximately 11% per annum for the Digital out of home market is assumed for 2020 to 2027. Given the current Covid-19 circumstances and the expected global recession that is yet to come, it is likely that the expectation for 2020 may not be met. However, given the investments being made in DOOH and the stable growth of recent years, we expect the chart below to be a good guide for future growth.

The growth of DOOH compared to OOH

The other method that is often looked at to measure the growth of DOOH is share of DOOH compared to the OOH and of course the total Out of home advertising market as a whole. The graph below comes from a report by Magna from 2017. But even though this data from 2017 is the reflection between the proportions of OOH and DOOH are still up to date.

This graph shows that the Out of home advertising market (including DOOH) as a whole will continue to grow and that the share of Digital will increase year by year. The annual growth rate of OOH is roughly 4% and the growth rate of DOOH is about 11% per year.

Tags: BrandGrowthGuideOutdoor advertisingTargetingVideo

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