Mobile and digital out-of-home advertising works when place, timing and message fit the same situation. Test the choice described in “The growth of Place-based Digital Out-of-Home Advertising” against current terms and your own measurements. Technology expands targeting and scheduling options, but reach without relevant context says little about effect.
To understand the growth of Digital Out-of-Home advertising (DOOH), it helps to start with its origins. Traditional Out-of-Home advertising (OOH) uses physical media in public spaces and predates digital screen networks by many decades.
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.
The chart reflected an expectation that the total OOH market would keep growing while the digital share increased. Its estimates of roughly 4% annual OOH growth and 11% DOOH growth came from an older forecast and should not be presented as current rates.
How to assess growth now
Market revenue and digital share do not fully describe the quality of a DOOH network. Buyers can also examine usable screen count, occupancy, audience methodology, programmatic availability and proof of play. The 2017 forecasts discussed here are historical expectations, not current market measurements.
Assess placement and measurement first
Define who can see the placement and how much time that person has to understand the message. Choose a suitable next step, such as a store visit or website action. Compare results across the same period and location, and document the assumptions behind reach or visitation measurements.
