Outdoor advertising is a sort of advertising that encompasses any type of advertisement done outside to promote products and services. Outdoor advertising offers various benefits, including the ability to create a great impact on viewers, increase brand recognition, reach a big audience, and be available 24 hours a day, 365 days a year. Finally, outdoor advertising enriches the visual environment.
In recent years, outdoor advertising has assisted advertisers in reaching audiences who do not have access to traditional advertisements, such as the younger generation, corporate executives, and the middle-class population, allowing advertisers to target specific demographics, ages, income levels, and ethnic groups. The global outdoor advertising market is likely to escalate to US$47.23 billion in 2023, witnessing growth at a CAGR of 12.26%, during the forecasted period.
According to this report, the global market can be divided into five major regions: Asia Pacific, North America, Europe, Middle East & Africa, and Latin America. The countries covered in North America region are the US, Mexico and Canada, while Europe includes Germany, UK, France, Spain and rest of Europe. Moreover, China, Japan, India, Australia and Rest of the Asia Pacific are included in the Asia Pacific region.
Asia Pacific is the region with the fastest rate of growth due to the region's growing urban population and rising purchasing power. The Asia Pacific outdoor advertising market is also largely being driven by the growing digitization across a variety of end-use sectors, including banking, transportation, recreation, etc.
Top Impacting Factors:
Driver: Booming Tourism Industry
Statistics have shown a progressive correlation between the tourism and outdoor advertising industry, as most of travelers are explorers. They search for products and other necessary surrounding information from the displays. Also, with the recent innovations in the advertising industry, the out-of-home promotion has become an affordable business strategy for investors to create brand awareness about their respective product among foreigners and surge revenue. However, amid the lockdown in 2020, the market declined due to the lack of mobility across the border but in 2021 it has rose again as the movement is allowed due to loosening of travel restrictions.
This advertising form allows a person to promote the goods & services via phone call or video call. In developing regions, this mode is becoming more profitable than out-of-home ad mediums as it is less-labor intensive, transfers message with high personalization and reduces indirect-cost. Also, due to favorable regulations in telecom-sector, outdoor telemarketing has become popular among the start-ups advertising agencies. Hence, this factor is directly hampering the OOH industry revenue.
Expanded personalized communication options, two-way conversations with target audiences, more current information, impressive augmented reality competences, more accessible elaborate campaigns, better graphics, faster response time, and the ability for advertisers to make split-second decisions would all benefit from the rapid adoption of 5G. Further, the location is more precise under the 5G network. Hence, through mobile GPS tracking, mobile ads may be connected to geo-located pinpoints. Main goal of outdoor advertising is to improve the user experience. Some firms have combined mobile and outdoor advertising to boost customer interaction. Potential customers may interact with adverts and provide useful data to brands in real-time by using technology. Therefore, it can be expected that the potential of 5G would further create significant synergies that yield digital transformation in outdoor advertising market in the coming years.
The COVID-19 Analysis:
The COVID-19 brought many changes to the world, including a lack of consumer visibility, lack of cross-border mobility, labor shortage, and halted economic activities across the world, caused by the COVID-19 pandemic, resulting in the downfall in demand for outdoor advertising in various end-use industries which eventually had a negative impact on its market growth globally. However, the post-pandemic market is anticipated to gain momentum as more people get vaccinated, there has been an increase in mobility at many touch-points, such as airports and shopping malls, and brands are gradually launching their campaigns. As people started returning to work, outdoor advertising exposure is also anticipated to increase.
Analysis of Key Players:
The market for outdoor advertising has typically been fragmented. Businesses are concentrating on introducing new features to satisfy customer expectations by providing a popular outdoor advertisement style. Additionally, vendors are extending their global reach thanks to a cutting-edge business strategy. Major business activities are being undertaken by market participants, including mergers and acquisitions, collaborations, agreements, the launch of new products, international expansion, and others. Further, key players in the outdoor advertising market are:
Every day, newer and newer inventions are added to the huge realm of advertising. Impacts increase when innovation and satisfaction are combined. The amazing billboards that will be placed at roadside constructions will alter the outdoor advertising market in the future. Some of the strategies among key players in the outdoor advertising market are mergers and acquisitions (M&A), affiliations, collaborations, and partnerships. For instance, in 2022, JCDecaux SA announced the signature of a strategic alliance, including the acquisition of a majority stake, with Displayce, the DSP (Demand Side Platform) leader specializing in the purchasing and optimization of digital outdoor advertising (DOOH). This alliance would support the international expansion of Displayce, via the implementation of a commercial acceleration plan and JCDecaux would significantly strengthen its commercial approach, offering its national but also its local customers a full-stack solution, from DSP to SSP, as well as simple and efficient access to new purchasing methods and smart planning.