The global digital out-of-home (DOOH) advertising market was valued at approximately US$ 6,084.1 million in 2018 and is projected to expand at a compound annual growth rate (CAGR) of 11.3% from 2019 to 2027, reaching an estimated US$ 15,905.7 million by 2027. Out-of-home advertising (OOH) has traditionally been a significant medium for marketing; however, the increasing trend towards digitalization has led consumers to favor digital out-of-home advertising. This form of advertising allows for precise targeting based on various factors such as location, consumer behavior, time of day, and demographic information. These elements are contributing to the growing popularity of digital out-of-home advertising worldwide, thereby propelling the market forward. The global digital out-of-home sector is experiencing remarkable growth, driven by the widespread adoption of digital platforms across diverse industries and regions. Companies operating in this market are consistently investing in innovative advertising strategies to capture consumer attention effectively. Digital out-of-home advertising excels in its ability to target audiences based on demographics, geographic location, and behavioral patterns, further enhancing its global appeal and market growth.
The segmentation of the global digital out-of-home market by type includes billboards, transit advertising, street furniture, and place-based advertising. The transit segment encompasses advertising spaces found in various modes of transportation, including railways and air travel, while street furniture refers to advertising infrastructure located in pedestrian-heavy areas, such as bus stops and phone booths. Place-based digital out-of-home advertising includes screens situated in high-traffic venues like shopping malls and stadiums. Among these segments, billboards command the largest market share, as they represent the most prevalent form of advertising, with many companies opting for billboard placements.
A significant portion of marketers is anticipating an increase in advertising budgets, particularly within the financial services, automotive, and technology sectors, which are expected to show promising growth. The retail sector held the largest market share in 2019, with recent trends indicating substantial investments in digital advertising aimed at boosting online traffic. As competition intensifies within the retail industry, marketers are expected to expand their offerings to better serve retail brands. Retailers are not only investing in programmatic advertising campaigns but are also refining their strategies to better target shoppers and guide them through a more streamlined purchasing process. For example, many brands are transitioning some or all of their programmatic buying functions in-house to achieve improved return on investment (ROI) on their campaigns and to gain greater control over first-party data. This shift allows retailers to connect with relevant audiences through personalized messaging and tailored offerings. The growing trend of integrating search with social media channels and enhancing display targeting reflects a broader focus on innovative practices designed to engage the right consumers at optimal times across various platforms.
One of the key trends anticipated to influence the digital out-of-home market in the near future is the potential of programmatic advertising. Programmatic advertising is emerging as a crucial trend within the digital out-of-home landscape, introducing innovative automation that is reshaping the OOH industry. Digital out-of-home advertising is increasingly surpassing traditional OOH methods, driven by the rise of programmatic digital OOH, which is transforming static outdoor advertisements into dynamic, automated experiences for consumers. The North American region currently dominates the digital out-of-home market, supported by several factors, including its advanced technological infrastructure and high standard of living among consumers. These elements are expected to continue to drive growth and significantly impact the digital out-of-home market in the future.
Key players in the digital out-of-home market include Clear Channel Outdoor, Inc., Lamar Advertising Company, JCDecaux, Outfront Media Inc., Fairway Outdoor Advertising, Lightbox OOH Video Network, Bell Media, Ayuda Media Systems, Signagelive, and Real Digital Media, among others.
The overall size of the digital out-of-home market has been determined through a combination of primary and secondary research methods. The research process begins with comprehensive secondary research utilizing both internal and external sources to gather qualitative and quantitative data related to the digital out-of-home market. Additionally, numerous primary interviews are conducted with industry participants and experts to validate the data and analysis. Participants typically include industry professionals such as vice presidents, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the digital out-of-home sector.