The global outdoor advertising market in 2021 stood at US$37.03 billion, and is likely to reach US$75.01 billion by 2027. In recent years, outdoor advertising has helped the advertiser to reach that audience who do not have access to traditional advertisements such as young generation, corporate guys and middle-class population thus allowing the advertiser to target particular demographics, ages, income, and ethnic groups.
Outdoor advertising is a type of advertising, which includes any type of advertisement which is done outdoor in order to publicize products and services. Outdoor advertising has several advantages, including the capacity to make a strong impression on viewers, boosting brand awareness, reach a large audience, and be available around-the-clock, 365 days a year. Last but not least, outdoor advertising improves the visual environment. The global outdoor advertising market is projected to grow at a CAGR of 12.3% during the forecast period of 2022-2027.
Market Segmentation Analysis:
By Product Type: The market report has segmented the global outdoor advertising market into two segments on the basis of medium type: traditional outdoor advertising, and digital outdoor advertising. The digital outdoor advertising segment is the fastest growing segment in outdoor advertising market in 2021, with a CAGR of around 14% during forecast period, attributable to innovation, expansion into new markets and locations, and improved outdoor advertising features.
By Region: According to this report, the global market can be divided into five major regions: Asia Pacific (China, Japan, India, Australia and Rest of the Asia Pacific), North America (the US, Canada, and Mexico), Europe (Germany, UK, France, Spain and rest of Europe), Middle East & Africa, and Latin America. 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.
Global Outdoor advertising Market Dynamics:
Growth Drivers: The demand for various types of outdoor advertising has increased significantly in recent years due to the booming tourism industry, as the tourism increases the footfall in airports and other attractive places such as shopping malls would increase resulting in more consumer visibility and brand awareness. Further, the market is expected to grow, driven by growing programmatic digital display ad spending, increasing urban populace, accelerating economic growth, improving consumer confidence, etc. in recent years.
Challenges: A person may use a phone call or video call to advertise products and services through outbound telemarketing. Since it takes less manpower, delivers messages with a high degree of personalization, and lowers indirect costs, this mode is increasingly more lucrative than out-of-home advertising media in developing countries. In the years to come, the need for outdoor advertising is projected to decline due to the increase in demand for this sector, posing a challenge to the market as a whole. Additionally, other factors like intense competition, stringent regulations, etc. are other challenges to the market.
Market Trends: AI is being used in both advertising and automation to boost productivity. It is also being used to optimize the enormous volumes of data at disposal to produce better campaigns and have a greater influence on the advertising industry. Therefore, it is anticipated that the use of artificial intelligence to the outdoor advertising industry would increase demand throughout the upcoming years. More trends in the market are believed to grow the outdoor advertising market during the forecasted period, which may include increase in mobile 5G subscriptions, embracing the power of storytelling, creativity-driven ads, rising applications of anamorphic & 3D billboards, software advancement, developing beacon technology fondness, etc.
Impact Analysis of COVID-19 and Way Forward:
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.
Competitive Landscape and Recent Developments:
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:
Clear Channel Outdoor Holdings
Str?er SE & Co. KGaA
Lamar Media Corp.
Outfront Media Inc.
Focus Media Information Technology Co Ltd
Asiaray Media Group
Global Media & Entertainment Ltd.
Al Arabia Outdoor Advertising
Atairos (Ocean Outdoor Ltd.)
Intersection Media, LLC.
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. Similarly, Stark Capital Solutions, Inc. announced the acquisition of Lamar Advertising.