Out of Home Advertising Market by Platform, Type, and Geography - Forecast and Analysis 2023-2027

Out of Home Advertising Market Forecast 2023-2027

The Global Out of Home Advertising Market is forecast to increase by USD 11.02 billion, at a CAGR of 4.95% between 2022 and 2027. The market experiences growth driven by various influential factors. The rising penetration of LED mobile billboards and the popularity of vehicle wrapping for advertisements reflect a dynamic shift in outdoor advertising strategies. Additionally, the increasing advantages of outdoor advertisements over traditional methods underscore the effectiveness of reaching consumers in high-traffic areas. This evolving landscape highlights the pivotal role of out of home advertising in engaging audiences and driving brand visibility on a global scale. This market research and growth report also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

What will be the size of the Out of Home Advertising Market During the Forecast Period?

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Market Dynamics and Customer Landscape

The market encompasses various formats, including digital and traditional billboards, transit advertising, and experiential activations. Marketers utilize this medium to reach consumers outside their homes, often in high-traffic areas such as airports, bus stops shelters, and urban streets. Brands like Marquetters and Dowloads employ Billboards and Locations to display their messages, targeting specific demographics based on factors like age, income, and lifestyle. The Snapshot of this industry is diverse, with Fastest Transit and Displays providing significant growth opportunities. Advertisers invest in this sector to increase brand awareness, generate leads, and drive sales. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Market Driver

One of the key factors driving growth in the market is the growing penetration of LED mobile billboards. LED mobile billboards are devices that are placed by the side of a trailer or a truck for advertising. The primary advantage of these devices is their movability factor. Enterprises can place these LED screens in front of the target demography, which can help them to get more noticed. Also, mobile billboards are more likely to catch the eyes of the audience due to their good visibility day or night. Various Companies are offering LED mobile billboards to enterprises.

For instance, Nomadic Genius offers LED mobile billboards to provide high-impact advertising. These billboards are sent to tested routes and are placed at the best place at exact times of the day, such as morning drive, afternoon drive, and weekends. This increases the chances of visibility of the ad to the audience, which, in turn, will lead to an increase in demand for outdoor advertising.

Significant Market Trend

The use of analytics to increase ad effectiveness is another factor supporting the market share growth. Advertisers and marketers are looking to manage ad campaigns remotely from the office or home. They are implementing data analytics to analyze and track the engagement of the audience with outdoor advertisements. Also, they can customize advertisements as per the demography of the audience based on their insights. This is encouraging various Companies to invest and develop software and analytics that will help them increase efficiency as well as provide advertisers and marketers more time to market their products or services.

This, in turn, will enable them to focus more on marketing strategy. Initially, tOutdoorhis platform will be deployed in the UK and the US, which will be followed by Australia, Belgium, Hong Kong, Italy, and Spain. Thus, the increasing use of analytics in OOH advertising will boost the growth of the market during the forecast period.

Major Market Challenge

The growing popularity of digital marketing will be a major challenge for the market during the forecast period. Social media has become a major data source for many organizations because of its ability to provide instant feedback about content through blogs and social networking sites. The increasing importance of sentiment analysis and the advances in text analytics are encouraging organizations to include social media in their business processes. The cost-effectiveness associated with digital marketing provides it with an edge over other advertisement methods, which utilize the installation of LFDs.

Investing in social media digital marketing campaigns is cost-effective and controllable. Traditional marketing interventions, such as LFDs, lack a personal touch in the way they communicate to their target audiences. This ongoing disadvantage of conventional marketing techniques, along with the high cost associated with their installation, is anticipated to carve the way for digital marketing. This mitigates the rationale of using LFDs, thereby hindering the growth of the market.

Customer Landscape

The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Global Out-of-Home-Advertising Market Customer Landscape

Who are the Major Market Companies?

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.

Adams outdoor- The company offers out-of-home advertising services through digital marketing and billboard charts. Also, they offer outdoor advertising and media outreach through billboard charts, digital platforms, and online third-party ads.

The report also includes detailed analyses of the competitive landscape of the market and information about 15 market Companies, including:

• APG SGA Allgemeine Plakatgesellschaft AG
• Asiaray Media Group
• Burkhart Advertising-Inc.
• Captivate LLC
• CATCHA GROUP
• Clear Channel Outdoor Holdings Inc.
• CP Media Ltd.
• Daktronics Inc.
• Drury Displays Inc.
• Euro Media Group SA
• Fairway Outdoor LLC
• Global Media and Entertainment Ltd.
• IZON Global Media
• JCDecaux SE
• Lamar Advertising-Co.

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.

Market Segmentation

The market share growth by the physical outdoor advertising segment will be significant during the forecast period. Physical OA is the largest segment of the market and wil continue to remain the largest segment during the forecast period. Physical OA is one of the primary methods to market a product or a service in the outdoor advertising category for many companies. It is a form of media that offers enterprises a solution to promote their product or service 24/7 at a low cost. Hence, it is more effective in spreading brand awareness about any company to the customers. Such factors will increase segment growth during the forecast period.

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The physical outdoor advertising segment was valued at USD 18.25 billion in 2017 and continue to grow by 2021. The physical OA also consists of tri-vision boards such as bulletins, which contain some additional features. They can move as well as carry more than one marketing message. A tri-vision board is divided into vertical strips. These strips rotate about every eight seconds, which helps in providing three messages on one billboard. The movement in these billboards also makes them attractive and effective in getting attention from consumers when compared with normal billboards. However, these physical outdoor advertisements are less interactive with customers when compared with digital outdoor advertisements. Hence, the physical OA segment is expected to lose its market share when compared with the digital OA segment during the forecast period.

Key Regions

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North America is estimated to contribute 30% 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. In North America, the rising demand is encouraging Companies to focus on strategic alliances to expand their market reach and increase their customer base. Also, intense competition in the market is expected to drive established market Companies to adopt new technologies to increase their market presence. Companies that offer OOH advertising are investing extensively in strategic partnerships, joint ventures, and acquisitions to capture a major share of the global market and expand their presence in new regions.

Market Analyst Overview

The market encompasses various forms of advertising that reach consumers outside their homes. This includes Billboards, Bus Shelters, and Transport ads. The evolution of technologies has led to the emergence of Digital Out of Home (DOOH) advertising, which offers more flexibility and interactivity. Models and trends in the OOH market include Corporate Licensing, Commuter Interactive, and In-store Lines. Renowned brands utilize these platforms to Reach and Trend audiences, fostering consumer engagement and increasing brand awareness. Food Service and Retail sectors are significant contributors to the market, with Businesses seeking to Usher in new customers and Lines offering unique advertising opportunities. Overall, the market continues to evolve, providing innovative solutions for advertisers to connect with consumers on the go.

In the market, Consumer behavior plays a pivotal role. Brands use various strategies, such as Simplified messaging and Placement in high-traffic areas, to engage audiences. The Use of technology, like Digital billboards and Proximity marketing, has significantly transformed this industry. Accessibility and Consumer preferences are key factors driving the growth of this market. Trends like Sponsored content and the commercialization of public spaces are shaping the future of Out of Home Advertising. Renowned brands and small businesses alike invest in this medium to reach their target audience effectively. The market is a dynamic and evolving space, with a focus on innovation and engagement. The market is witnessing remarkable growth driven by changing consumer habits and evolving lifestyles. With increased internet usage and smartphone accessibility, brands are leveraging online platforms to enhance ad exposure and gauge brand sentiment.

Innovations like simplified e-banking and improved food courier logistics have reshaped the business model, leading to a surge in website visits and app downloads. Real-time meal delivery tracking and personalized home food delivery services cater to the rising demand for convenience, while the rise of cloud kitchens is revolutionizing the restaurant delivery service market. Extensive food research and foodservice research further inform strategies, with various licensing options like single user, team, corporate, and commercial licenses accommodating diverse infrastructural and institutional needs. The market witnesses substantial growth, fueled by shifting consumer habits and the booming Online Food Delivery Market. Integration of location data enhances advertising precision, targeting audiences with high purchase intent. A comprehensive market snapshot unveils trends and growth prospects. Licensing options, including Single User License, Team License, and Corporate License, cater to diverse business needs, facilitating market access and expansion strategies.

Segment Overview

The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. 

• Platform Outlook 
  • Physical outdoor-advertising
  • Digital outdoor-advertising

• Type Outlook 
  • Billboards
  • Shelters
  • Transit displays
  • Street furniture

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Argentina
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2023 and 2027
• Precise estimation of the market size and its contribution to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Market growth analysis across North America, APAC, Europe, South America, and Middle East and Africa
• Thorough analysis of the market’s competitive landscape and detailed information about companies
• Market forecasting of factors that will challenge the growth of the key companies

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