‘OOH growth gathering momentum with DOOH, retail media expansion’

WOO President Tom Goddard provides an overview of the state of global OOH sphere, and the major catalysts for sustained business growth

Addressing the WOO World Congress in Hong Kong, Tom Goddard, President of the World Out of Home Organization (WOO) highlighted the positive trends in the OOH advertising sector for 2022 and 2023. During this period, there was a notable increase in OOH spending, jumping from $36.2 billion to $41.9 billion, signalling robust growth of approximately 15.7%. This growth indicates a strong recovery and expansion within the OOH advertising sector.  

Moreover, the share of total media spend attributed to OOH rose from 4.7% to 5.2%, suggesting that OOH is capturing a larger portion of the overall advertising market, reflecting its increasing value compared to other media forms. Factors contributing to this surge include advancements in DOOH, improved measurement techniques, and more precise audience targeting capabilities. 

Despite a drop in percentage share from 2019 to 2022, the absolute spend on OOH continued to rise, indicating overall growth in total media expenditures. However, the resurgence in the percentage share in 2023 suggests accelerated growth for OOH compared to total media spend. These findings paint a positive outlook for OOH advertising, emphasising its growing importance and effectiveness within the advertising landscape. 

Additionally, Tom highlighted that although the percentage share of OOH spending dropped from 2019 to 2022, the monetary valuation continued to increase, indicating consistent growth in total media spending. Regionally, Asia-Pacific (APAC) led in OOH spending for 2023 with $20.2 billion, followed by Europe with $10.3 billion, North America with $9.4 billion, Latin America (LATAM) with $1.2 billion, and Africa with $0.7 billion.

Global OOH Volume and % Share of Total Media (in $Bn) 

In 2023 DOOH advertising represented a notable percentage of the total OOH advertising spend across different regions. In North America, DOOH accounted for 33% of the total OOH expenditure, while in Europe, it reached 40%. The Asia-Pacific (APAC) region saw 36% of its OOH spend dedicated to digital formats. In Africa, the proportion was 20%, and in Latin America, it stood at 30%. On a global scale, digital penetration in the OOH sector averaged 35.7%.  

Top Global Digital Markets - Digital As A % Of Ooh

In 2023, several countries emerged as leaders in digital penetration within the OOH advertising market. Australia topped the list with digital formats making up 76.0% of its total OOH spend. The United Kingdom followed with 65.0%, and the Netherlands came in third at 54.1%. Brazil had a 47.8% digital share in its OOH advertising, while Germany's figure was 41.4%. Both Mainland China and South Korea had 40.0% of their OOH expenditure allocated to digital formats, highlighting their significant investment in digital advertising technologies.

Hot Activity Areas that Tom highlighted were: 

• Media Owner Consolidation: The industry is experiencing a wave of mergers and acquisitions as media owners seek to expand their reach and capabilities.
• Buy-side Media Agencies: Media agencies on the buy-side are playing an increasingly strategic role in the planning and purchasing of ad space, leveraging data and technology to maximize ROI.
• Measurement and Data: Accurate measurement and data analytics are becoming crucial for evaluating the effectiveness of advertising campaigns and informing future strategies.
• Sustainability - The Clock is Ticking: There is a growing urgency for sustainable practices within the advertising industry, driven by both regulatory pressures and consumer demand for environmentally friendly solutions.
• AdTech: Advances in advertising technology are transforming how ads are created, targeted, and delivered, making campaigns more efficient and effective.
• The Explosion of Retail Media: Retail media is rapidly expanding, with retailers leveraging their digital platforms to offer advertising opportunities that reach consumers directly at the point of purchase.
• The Rise of the Machines - AI in OOH: Artificial intelligence is revolutionizing Out-Of-Home (OOH) advertising, from dynamic, data-driven content creation to automated ad placement and performance optimization.

New Horizons in Audience Measurement & Data Suppliers

The field of audience measurement and data suppliers is witnessing significant advancements, with numerous companies leading the way in innovative solutions. Notable players include: 

• Ipsos: A global market research company providing insights into audience behaviours and preferences.
• All Unite: Specializes in audience measurement and engagement analytics.
• Motionworks: Focuses on movement data analytics to provide deeper insights into audience location and activity.
• Cuende: Known for its advanced OOH audience measurement solutions.
• Seventh Decimal: Offers precise data on audience demographics and behaviours.
• Moving Walls: Provides comprehensive solutions for OOH media planning and measurement.
• Quividi: Delivers real-time audience and engagement analytics for digital signage.
• AdMobilze: Utilizes AI to measure audience engagement and demographics for DOOH advertising.
• PSE: Offers detailed audience data to enhance ad targeting and measurement.
• ReLu AI: Leverages artificial intelligence to provide innovative audience measurement solutions.

 These companies are pushing the boundaries in understanding and quantifying audience interactions, enabling more effective and targeted advertising strategies, he said.

Retail media

Retail media is projected to constitute one-fifth of global digital ad spending in 2024. From 2019 to 2025, retail media ad spending has shown a Compound Annual Growth Rate (CAGR) of 21.9%, with expenditures increasing from $50.7 billion in 2019, representing 15.1% of total digital ad spending, to $68.0 billion in 2020 (17.4%). In 2021, spending reached $89.8 billion, accounting for 17.8% of digital ad spending, and grew to $98.2 billion in 2022, maintaining a 17.8% share. The trend continued in 2023 with $115.0 billion spent, making up 18.8% of the digital ad market. The forecast for 2024 predicts retail media ad spending will rise to $140.0 billion, capturing 21.8% of the total digital ad spending, and by 2025, it is expected to reach $165.9 billion, accounting for 21.6%.

Retail Media will make up one-fifth of worldwide digital ad spend in 2024 global retail media ad spending

2019 - 2025 CAR: 21.9% (Amount in Billions)