What is out-of-home advertising?
Anyone who has ever visited Times Square in New York or Piccadilly Circus in London has certainly in mind the dazzling lights coming from the myriad of billboards overlooking the street. Those majestic billboards are the manifestation of the out-of-home-advertising (OOH). OOH is a form of advertising that can be found outside of a consumer’s home. It includes everything from billboards – of various dimension – to bus shelter benches. If during your stroll around your neighborhood or during your daily commuting you are gazing at an advertisement that it is not on your mobile, it is likely you are get caught in the out-of-home advertising.
The turning point for OOH
OOH is all but new. Traditionally OOH has been always relegated to a minority share of wallet of advertising campaign. According to market expert, OOH claims around 7% of the total budget for advertising. Traditional means of communication like radio, TV and newspaper have dominated the advertising sector for decades. Nevertheless, the advent of social network and the platform revolution upended the hierarchy in the communication channel. Consequently, big corporations have redefined their marketing effort with the aim of following the shift in consumers’ behaviors and the increase usage of mobile data. Still, OOH remained below the radar.
Until now. The digitization of the physical billboard and the development of programmatic software have increased the appeal of the OOH segment.
The next stop: digital and programmatic advertising
The advent of digital screens instead of the old-fashioned printed paper walls have transformed the industry for the better. The captivating video messages or bright images drive the attention of potential customers in a way that is more engaging and far less intrusive than other advertising channels. Moreover, the technological innovation coming under the name of programmatic advertising has increased the appeal for advertisers. With the programmatic advertising, specific messages can be directed to a specific target audience, thus increasing the efficacy of the message. Moreover, specific advertising campaign can be swiftly implemented or modified at short-notice. A great opportunity for a world where consumers’ taste are changing even faster.
(D)OOH is here to stay and growing
Despite being one of the oldest form of advertising, the OOH sector is expected to reach $14.3 billion by 2028, rising 12% CAGR for the forecast period driven by an acceleration of the digital OOH. Europe and USA will be at the forefront for the next phase. In Europe, UK, France and Germany are the most fertile countries for the segment.