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The digital OOH market share is expected to increase by USD 5.08 billion from 2020 to 2025, and the market's growth momentum will accelerate at a CAGR of 5.00%.
This digital OOH market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers digital OOH market segmentations by type (in-store advertising and outdoor advertising), application (retail, recreation, banking, transportation, and others), and geography (APAC, North America, Europe, MEA, and South America). The digital OOH market report also offers information on several market vendors, including APG SGA Allgemeine Plakatgesellschaft AG, Clear Channel Outdoor Holdings Inc., Focus Media Information Technology Co. Ltd., Global Radio Services Ltd., JCDecaux SA, OOH!media Ltd., OUTFRONT Media Inc., Plan B Media Public Co. Ltd., Stroer SE and Co. KGaA, and VGI Public Co. Ltd. among others.
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Based on our research output, there has been a positive impact on the market growth during and post COVID-19 era. The decline in competition from print advertising is notably driving the digital OOH market growth, although factors such as complex implementation requirements may impede market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the digital OOH industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.
Key Digital OOH Market Driver
One of the key factors driving the digital OOH market growth is the decline in competition from print advertising. Primary raw materials used in print advertising are substrate and ink. Currently, there are several raw materials suppliers that offer their products to vendors; however, based on market conditions, this could change in the future. Printing ink is primarily produced using raw materials such as binders, pigments, solvents, and additives. These raw materials are procured from specialty chemical vendors. Pigments are considered the principal constituent of the ink and contribute a significant percentage to the production cost. Moreover, the oil and gas industry is one of the principal suppliers of raw materials used in printing ink. Digital advertising is increasing rapidly because of the decreasing adoption of print/physical media. Digital media advertising has developed and is taking up the share of print advertising. Print advertising is losing its share due to intense competition from the digital platform. In addition, the growing replacement of physical billboards with interactive billboards is driving market growth. The above factors indicate that digital OOH advertising has a promising future.
Key Digital OOH Market Trend
Another key factor driving the OOH market growth is the market consolidation. In December 2018, Lamar Advertising announced the acquisition of Fairway Outdoor Advertising s billboard operations in five US markets from GTCR LLC (GTCR) for a purchase price of $418.5 million. This acquisition adds more than 8,500 billboards, which includes more than 135 digital displays, in North Carolina, South Carolina, Georgia, and Wisconsin. Lamar Advertising anticipates that this transaction contributed approximately $70 million in terms of revenue by early 2020.In October 2018, JCDecaux announced that JCDecaux ANZ Pty Ltd, a wholly-owned subsidiary of JCDecaux, had completed the acquisition of APN Outdoor, an Australia-based OOH advertising company. The acquisition of APN Outdoor represented a significant milestone in JCDecaux s global growth strategy, making Australia their fourth-largest market and helped them enter a new market, namely New Zealand. These consolidation strategies implemented by major digital OOH companies focus on increasing their market share in the global market. Hence, this trend is expected to drive growth in the global digital OOH market during the forecast period.
Key Digital OOH Market Challenge
Complex implementation requirements is one of the key challenges hindering the OOH market growth. The cost of displaying a digital advertisement varies based on factors such as campaign length, exposure time and period, and the region. The high implementation cost of digital OOH advertising and ROI acts as a concern that many companies need to focus on before adopting this medium of advertisement. In addition, advertisers are required to take permission from local authorities or governing bodies for projecting advertisements through advertising media such as billboards, shelters, and transit displays in public places. One such instance is the implementation of digital advertising in the transit system. Advertisers need permission from transportation authorities to display an advertisement. These transport authorities face high pressure to offer their services without any increase in fare under an inflating global economy. Therefore, digital OOH vendors need to bear all the costs, including all necessary hardware and software installation, as well as labor expenses. All of these factors are likely to hinder the revenue inflow of the market in focus during the forecast period.
This digital OOH market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2021-2025.
Technavio categorizes the global digital OOH market as a part of the global interactive media and services market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the digital OOH market during the forecast period.
The report analyzes the market's competitive landscape and offers information on several market vendors, including:
This statistical study of the digital OOH market encompasses successful business strategies deployed by the key vendors. The digital OOH market is fragmented and the vendors are deploying growth strategies such as acquisitions and strategic alliances between vendors to compete in the market.
To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.
The digital OOH market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.
Our report provides extensive information on the value chain analysis for the digital OOH market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.
The report has further elucidated on other innovative approaches being followed by service providers to ensure a sustainable market presence.
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75% of the market's growth will originate from APAC during the forecast period. Japan and China are the key markets for digital OOH in APAC. Market growth in this region will be faster than the growth of the market in other regions.
The digital OOH market in APAC is expected to grow as vendors from other regions are investing in APAC to expand their operations and introduce their product offerings in this region. This also includes the acquisition of regional vendors with a focus on increasing the customer base. An instance is the acquisition of APN Outdoor Group Ltd. (APN Outdoor), an Australian company by JCDecaux SA (JCDecaux). This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.
COVID Impact and Recovery Analysis
The country imposed a total lockdown in the first half of 2020 to prevent the community spread of the disease. India, Australia, and New Zealand were among the countries in APAC which imposed lockdowns to restrict the spread of COVID-19 in 2020. This led to a temporary halt in the services offered by domestic and international flights, retail stores, education facilities, recreational areas, transit hubs, and shopping complexes that use digital OOH and negatively affected the revenue generated from the digital OOH market, as advertisers preferred using mobile and Internet advertising instead. However, in late 2020, operations in various industries were gradually restarted with limited capacity while maintaining social distancing norms. Operations in end-user industries are expected to slowly normalize in 2021 with the initiation of large-scale vaccination drives across APAC.which, in turn, is expected to increase the demand for digital OOH in APAC during the forecast period.
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The digital OOH market share growth by the in-store advertising will be significant during the forecast period. In-store advertising basically refers to advertisements within enclosed surroundings, such as supermarkets, drug stores, and convenience stores. It is adopted by installing display monitors at checkout counters and at other places such as above-aisle or end-aisle displays. The in-store advertising segment of the global digital OOH market is likely to register stagnant growth during the forecast period because of the popularity of e-commerce websites is impacting the growth opportunities for in-store advertising.
Besides the above-mentioned factors, the post COVID-19 impact has brought forth a slowdown in or fast tracked the demand for the service or product. This report provides an accurate prediction of the contribution of all the segments to the growth of the digital OOH market size and actionable market insights on post COVID-19 impact on each segment.
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Digital OOH Market Scope |
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Report Coverage |
Details |
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Page number |
120 |
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Base year |
2020 |
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Forecast period |
2021-2025 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 5.00% |
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Market growth 2021-2025 |
$ 5.08 billion |
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Market structure |
Fragmented |
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YoY growth (%) |
4.24 |
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Regional analysis |
APAC, North America, Europe, MEA, and South America |
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Performing market contribution |
APAC at 75% |
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Key consumer countries |
Japan, US, China, UK, and Germany |
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Competitive landscape |
Leading companies, Competitive strategies, Consumer engagement scope |
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Key companies profiled |
APG SGA Allgemeine Plakatgesellschaft AG, Clear Channel Outdoor Holdings Inc., Focus Media Information Technology Co. Ltd., Global Radio Services Ltd., JCDecaux SA, OOH!media Ltd., OUTFRONT Media Inc., Plan B Media Public Co. Ltd., Stroer SE and Co. KGaA, and VGI Public Co. Ltd. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Five Forces Analysis
5 Market Segmentation by Application
6 Market Segmentation by Type
7 Market Segmentation by Category
8 Customer landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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