Alfi Inc., an AI enterprise SaaS platform company powering computer vision with machine learning models to allow content publishers and brand owners to deliver interactive, intelligent information without violating user privacy, commissioned market research company PureProfile to survey 100 senior advertising executives across the US, UK, France, Germany and Asia. Interviews were conducted online in June 2021.
This research reveals that 95% of advertising executives expect the Digital Out of Home (DOOH) advertising sector to grow over the next two years, with 51% anticipating dramatic expansion. At the end of 2020, the DOOH advertising market was estimated to be worth $41.06 billion, but by 2026, nearly two out of three (65%) advertising executives interviewed predict this will rise to between $50 billion and $55 billion. A further 16% expect it to be worth between $55 billion and $60 billion, and 14% estimate it will be even greater.
Out of Home (OOH) advertising is traditional (i.e., non-digital and non-programmatic) outdoor advertising, targeting consumers when they are in public places, commuting to work or for example in specific commercial locations. Digital Out of Home (DOOH) advertising is OOH powered by technology that provides a number of features including tracking, retargeting, personalising of adverts, and greater attribution and measurement of campaigns.
In terms of how advertising spend on DOOH will change between now and 2026, 50% of respondents anticipate it will rise dramatically and a further 40% expect it to increase slightly. The main reason for this growth is that there will be a bigger general spend on digital advertising – the view of 66% of senior advertising professionals interviewed.
This was followed by 62% who said advances in technology mean that Digital Out of Home advertising will be able to provide even more analysis around campaigns run on them. Other reasons given for the anticipated increased spend include the general growing focus on evaluating advertising campaigns and the strength of the DOOH market here, and a rapid increase in the number of advertising digital screens being rolled out.
|Reasons for an expected increase in advertising spend on DOOH over the next five years||Percentage of advertising executives who think this is a reason for expenditure on DOOH advertising increasing|
|There will be a bigger general spend on digital advertising||66%|
|Advances in technology means the DOOH market will be able to provide more analysis on campaigns||62%|
|Growing focus on evaluating advertising e.g., how many people watched an advert, how long did they look at them||60%|
|Rapid increase in the number of digital screens available||56%|
|Price of LCD and LED display technology is falling||26%|
|Decline in readership of print media||25%|
Kevin Buchler, Vice President – UK Operations at Alfi said: ‘There is little doubt that the DOOH advertising market is enjoying strong growth. Society, as a whole, is becoming increasingly digitised and the advertising sector is looking to make greater use of technology to deliver stronger more personalised and effective campaigns, with greater transparency around results. The unique qualities of DOOH advertising in meeting these trends helps to explain why the sector is enjoying such strong growth.’
Advertisers are increasingly demanding improved performance and capabilities from the ad technology they utilise.