The global outdoor digital advertising market size is expected to reach $14.3 billion by 2028, with the market growing at 11.9% CAGR during the forecast period, according to a new report from Research and Markets .
Digital Outdoor Advertising (DOOH), which combines both digital and traditional outdoor advertising components, is displayed in real time, delivering unique and original material, which becomes more interactive and creative.
Brands can use DOOH to effectively advertise their products even if they are not equally available everywhere with the right technology partner. For example, if a company wants to launch a new line of frozen pizzas — first in a few cities, then nationwide — they could use DOOH to target each market individually. One might need a campaign stating that the pizzas are currently available, while another might need to point out that the new range will be available shortly.
According to the report, increasing urban population and economic development are contributing to growing demand, with money spent on advertising steadily increasing.
The United States of America leads the pack, followed by China and Japan. When it comes to ROI per screen, the United States was ranked first. Advertisers are also developing more imaginative and interactive street furniture, allowing them to engage their audiences while simultaneously collecting data about them, the report adds.
A downside is that DOOH is expensive to implement.
“Along the highways, there are many billboards. Drivers are more focused on the road than on roadside advertisements. Many billboards are only visible for a second or two at most,” Research and Markets said in a statement.
“So the biggest problem with digital outdoor advertising formats is their ephemeral nature. Companies have to pay large sums so that their advertising is watched for only a few seconds on average. Therefore, the advertising cost per exposure may be higher than with other approaches. This factor makes it somewhat impractical for small and medium businesses.
They added that billboards cost more per panel than other types of digital outdoor advertising, such as 6-sheet displays in shopping malls or post office displays.