Enjoy complimentary customisation on priority with our Enterprise License!
The Digital Out-of-Home (OOH) Market size is estimated to grow by USD 16.92 billion at a CAGR of 10.51% between 2023 and 2028. The digital out-of-home advertising market is witnessing significant growth due to the increasing utilization of interactive advertisements, which merge digital technology with physical spaces to captivate audiences. Brands are leveraging enhanced features like full-motion video and animation to create immersive and interactive displays that boost brand awareness. This trend is evident in Nike's 3D billboard campaign, showcasing dynamic visuals and engaging content.
Moreover, the integration of AI in OOH advertising enables advertisers to analyze audience engagement remotely, utilizing real-time data to tailor ads based on demographics and preferences. As a result, advertising agencies are investing in technological innovations to enhance the visibility and effectiveness of OOH campaigns, driving market growth during the projection period.
The in-store advertising segment is estimated to witness significant growth during the market 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 digital OOH market is likely to register stagnant growth due to the popularity of e-commerce websites is impacting the growth opportunities for in-store advertising.
Figure 2: Market by Type 2024-2028
Get a glance at the market contribution of various segments View the PDF Sample
The in-store advertising segment was the largest segment and was valued at USD 13.90 billion in 2018. Furthermore, one of the major challenges that the in-store advertising segment of the market faces is monetizing the needs of the audience. The digital single screens implemented for in-store advertising lack the attraction of outdoor advertising as they deliver advertising messages in a continuous, content-driven loop that can be customized using software programming. Additionally, the biggest advantage of in-store advertising is that it ensures that advertisers get the screen time they require to advertise their product. Therefore, the in-store advertising segment is expected to witness growth in the global digital OOH advertising market during the forecast period.
Billboards advertising includes advertisements displayed in open and public spaces such as roads, flyovers, street furniture, sports arenas, malls, transit hubs like airports and bus stops, as well as food courts. Further, the surge in the number of air travelers has resulted in the need for new airports and the expansion of the existing ones. Airport expansion helps to improve existing infrastructure that is incapable of supporting heavy passenger traffic. Furthermore, with the steady development of mobile application networks, vendors get the opportunity to target customers accordingly. However, the billboards segment is expected to witness growth in the global digital OOH advertising market during the forecast period.
For more insights on the market share of various regions Download PDF Sample now!
APAC is estimated to contribute 40% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The market in APAC is expected to grow as market players 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. Further, the adoption of new technologies, such as augmented reality and virtual reality, in OOH advertising in China is estimated to drive the digital OOH market in APAC.
Furthermore, the spending on digital OOH advertising in countries such as the Philippines, Singapore, and Thailand has been increasing. Countries such as Japan, China, and India offer a high growth opportunity for digital advertising due to the increase in spending by advertisers on digital OOH advertising in the country. Additionally, high urbanization in APAC is increasing the adoption of digital OOH advertising. This enables companies to target a wider audience comprising corporate workers and shoppers, among others. Hence, such factors are expected to drive digital out-of-home market growth in this region during the forecast period.
In the realm of digital out-of-home advertisements, advertisers are leveraging innovative strategies to captivate audiences and maximize the utilization of outdoor advertising spaces. With increasing expenditure in the outdoor advertising sector across various industries, digital OOH presents the unparalleled ability to enhance brand awareness through diverse advertising types and enhanced features. Creative and interactive displays, incorporating elements such as full-motion video and animation, are reshaping the landscape of outdoor advertising, offering real-time data display and heightened visibility. The adoption of digital OOH is on the rise, driven by its ability to provide extensive geographical coverage and accommodate various production and capacity needs.
However, challenges persist, including optimizing network layouts and streamlining the supply chain to meet demand. Embracing technological innovations, such as interactive advertisements, is key to overcoming hurdles and ensuring effective engagement across channels. Whether targeting people in offices or homes, digital OOH offers unparalleled reach and impact during its projection period.
Increasing adoption of interactive OOH advertising is the key factor driving market growth. Most businesses are adopting strategies by incorporating interactive digital OOH, blending digital technology with physical spaces, and creating immersive interactions that capture attention. This might include interacting with the signage and seeing their creative photos or tweets using hashtags showing up on the screen. For instance, in August 2023, Nike, Inc., a leading footwear brand, was promoting its air sneakers in a 3D billboard. The advertisement included a visual of hitting robots, lasers, lightning bolts, and a giant scorpion across two screens.
Also, another creative OOH advertisement appeared in the US in 2023 for International Womens Day. This advertisement featured a bruised and battered face of a woman and used facial recognition technology. The interactive session included the faster healing of the cuts and bruises as more people looked at the womans face. Additionally, advertising agencies and marketing companies are coming up with new and innovative ideas, which will surely boost the market growth during the forecast period.
The use of AI in OOH advertising is the key primary trend shaping market growth. Advertising agencies and marketing companies are implementing data analytics to analyze and track the engagement of the audience with OOH advertisements remotely. The incorporation of AI provides information about customer time, place, likes and dislikes, as well as social and purchase history. These data are also used to customize advertisements as per the demography of the audience based on their insights. This is encouraging digital out-of-home (OOH) market players to invest and develop software and analytical tools that will help them increase the efficiency of advertisements as well as provide effective deployment of their advertisements.
For instance, on February 1, 2024, Netflix announced that it would promote its series called Griselda with a virtual OOH activation. Additionally, the information technology (IT) companies came together to test a digital OOH advertisement. In this test, a camera had been installed in an urban motorway in Tokyo, which surveyed all passing vehicles. Consequently, the growing adoption of AI in digital OOH advertising will enhance the effectiveness of digital OOH, which is expected to drive market growth during the forecast period.
The high cost of implementing digital OOH in advertisement is a challenge that affects market growth. The cost of displaying a digital advertisement varies based on factors such as campaign length, exposure time and period, and the region. In addition, advertisers are required to get permission from local authorities or governing bodies to project 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 advertise. These transport authorities face high pressure to offer their services without any increase in fares under an inflating global economy.
Furthermore, the market players need to ensure this expenditure is later recovered by the advertising sales organization through the advertisement sales revenues. Further, digital displays in a retail environment run throughout the work hours. Their battery capacity is limited because of their large size and weight. Most display devices at retail outlets consume a large amount of power because of their big screens and high resolutions. The use of high-resolution displays requires more power, which increases the power rating of the device. Thus, such factors may impede market growth during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The market analysis and report includes, qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The Digital OOH Market witnesses a surge in digital out-of-home advertisements, offering cost-effective and measurable advertising solutions targeting mass audiences. With the utilization of digital signage solutions and interactive commercials, brands enhance brand awareness and customer engagement.
Outdoor advertising experiences a transformation with the rise of digital presentations and interactive advertisements across various modes of advertisement, including billboards, kiosks, and public transportation infrastructure. The advent of programmatic digital out-of-home (DOOH) platforms like Hivestack's SSP facilitates real-time verification and data-driven audience targeting for live campaigns.
In smart cities, digital out-of-home (DOOH) channels integrate seamlessly, leveraging augmented reality and virtual reality technologies for smart advertisements. The transit & transportation segment witnesses a shift towards digital transit & transportation advertising, utilizing LCD screens and LED displays to capture consumer preferences.
Indoor segments such as shopping centers, airports, and cinemas embrace dynamic content delivery and interactive digital signage, ensuring the relevance and impact of advertisements. Market growth and trends indicate an increasing adoption of digital OOH solutions globally, driven by urbanization and infrastructure development.
Leading players like JCDecaux and VIOOH Limited dominate the programmatic digital out-of-home (DOOH) offerings, catering to global brands and domestic players alike. As the market expands, strategic decisions and technological innovations continue to shape its trajectory, offering promising market research and growth opportunities.
Market Scope |
|
Report Coverage |
Details |
Page number |
189 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 10.51% |
Market growth 2024-2028 |
USD 16.92 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
9.79 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 40% |
Key countries |
US, Canada, China, Japan, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
360Hoardings, ADmyBRAND Inc., Adonmo Pvt. Ltd., AllOver Media LLC, Blue Outdoor, Broadsign, Capitol Outdoor LLC, Captivate LLC, Clear Channel Outdoor Holdings Inc., Euro Media Group, Excellent Global Endeavors LLP, Focus Media, JCDecaux SE, Lamar Advertising Co., Lightbox OOH Video Network, OUTFRONT Media Inc., Perion Network Ltd., Primedia Pty Ltd., Stroer SE and Co. KGaA, Times Innovative Media Ltd., and Vistar Media |
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, and market condition analysis for the forecast period. |
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. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Product
8 Market Segmentation by Application
9 Customer Landscape
10 Geographic Landscape
11 Drivers, Challenges, and Trends
12 Vendor Landscape
13 Vendor Analysis
14 Appendix
Get lifetime access to our
Technavio Insights
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.