The rise of social media and other digital platforms have displaced the market share of traditional channels such as TV and radio. Yet out-of-home (OOH) advertising has evolved into a commercial medium that straddles online and offline advertising.
Where is the out-of-home (OOH) advertising industry headed? With digital on the rise, and traditional channels like television and radio on a decline, the future of billboards and other forms of signage may seem bleak.
Yet the numbers tell a different story: in a 2017 report conducted by marketing intelligence firm MAGNA Global, OOH advertising remains a popular medium, accounting for US$29 billion of advertising spending worldwide. It is also projected to grow 3 to 4% for the next 4 years, reaching up to $33 billion by 2021. This is in part due to the emergence of digital OOH (DOOH), more commonly known as digital signage, as a platform that’s rapidly boosting revenues.
DOOH creates more opportunities for marketers in premium locations such as malls and airports, increasing the revenue per panel several times. Today, it already generates 14% of total OOH advertising revenues, and is predicted to grow up to 24% globally by 2021.
The State of OOH and DOOH in The Philippines
In a global study conducted by the Outdoor Advertising Association of America (OAAA), the Philippine OOH market is generating $293 million worth of revenue, with DOOH having already captured a 21% share.
OOH is lucrative because it remains accessible to the masses. According to the MAGNA Global Report, OOH reaches at least half of consumers in most markets, and as much as 90% in some, while also being immune to the erosion and fragmentation experienced by television, radio, and print.
In light of these statistics, today, brands and organizations around the world are already coming up with interesting ways to use digital OOH advertising.
DOOH examples around the world
1. McDonald’s, London
McDonald’s in London surprised consumers with their own version of a weather forecast, taking eight famous menu items and transforming them into various weather icons. Displayed on multiple digital billboards around the city, each signage broadcasts real-time data from the UK’s Met Office, all while expanding the McDonald’s brand experience in a uniquely engaging way.
2. Metropolitan Transportation Authority, New York
DOOH advertising has also made its way into public transportation, with networks such as the New York City Subway installing dynamic digitized displays. This opens up more possibilities for brands to create engaging content for commuters – as well as many cities around the world to follow suit.
3. Verum, Stockholm
Digital signage has also become a compelling platform for brand activations, as seen here with dairy company Verum in Sweden. To kick off their latest campaign, they invited commuters at the Stockholm Metro to experience their brand new packaging – which they can personalize with the use of an interactive digital display.
The shift of OOH towards digital shows its resilience in weathering the changes of the advertising industry. But beyond that, it also provides a highly personal yet profitable means for businesses to connect with their consumers.