Out-of-Home Advertising Market:
WiseGuyReports.com adds “Global Out-of-Home Advertising Market Research Report 2021 Analysis and Forecast 2030” reports to its database.
The global OOH (Out-of-home) advertising market is expected to grow from $25.29 billion in 2019 to $25.49 billion in 2020 at a compound annual growth rate (CAGR) of 0.8%. The slowed growth is mainly due to the COVID-19 outbreak that has led to restrictive containment measures involving social distancing, remote working, and the closure of industries and other commercial activities resulting in operational challenges. The entire supply chain has been disrupted, impacting the market negatively. The market is then expected to recover and reach $31.05 billion in 2023 at a CAGR of 6.8%.
The OOH (Out-of-home) advertising market consists of the sales of advertising services and related goods by entities (organizations, sole traders and partnerships) that plan, develop, create and manage advertisement and promotional activities at out-of-home advertisement facilities. Only goods and services traded between entities or sold to end consumers are included.
North America was the largest region in the OOH advertising market in 2019. Asia-Pacific is expected to be the fastest-growing region in the forecast period.
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In September 2018, the Australian outdoor ad operator oOh!media acquired Adshel, an out of home advertising company, for a deal amount of $570 million. The acquisition of Adshel is expected to complement the oOh!media business. oOh!media is entering into new segments of street furniture and rails in Sydney and Melbourne. The company is looking forward to fast-tracking innovation across their entire network to build engagement with the audience and to make their offering more compelling for advertisers.
The OOH market covered in this report is segmented by type into billboard; transport; street furniture; transit displays; others. It is also segmented by platform into static; digital and by application into food and beverage industry; vehicle industry; health and medical industry; commercial and personal services; consumer goods; others.
The volatile cost of advertising is expected to limit the out of home advertising (OOH) market’s growth. The billboard advertising costs are volatile and are affected by several factors such as circulation (total volume of traffic that passes the billboard), demographics, and impressions. Additionally, the cost of designing an ad and the cost of building the physical one also influences the overall cost. According to Fit Small Business, a digital resource company, costs of average physical billboards in US rural areas are $250, in the range of $1,500 – $4,000 in mid-size cities, and $14,000 and above in large cities. For instance, physical billboard cost in Cedar Rapids is $550 – $4,000 per month for a population of 209,658, and in Los Angeles is $1,000 – $10,000 for a population of 10 million. These costs include only the rent, while the cost of designing an ad varies. Therefore, the volatility of the cost of advertising harms the out of home advertising market.
Companies are increasingly using artificial intelligence to advertise their product. The major applications and benefits of artificial intelligence for digital out of home advertisement are agile and trigger data-driven campaigns. For instance, McDonald’s used data like weather and time of day to remind the consumers to promote ice creams sundaes on a hot day, and on the other hand Coca-Cola promoted smart water when the temperature exceeded 21 degrees. Virgin trains also used real-time traffic data to show motorists how much quicker their journey could have been by using trains. Therefore, AI and automation can optimize ads and update them creatively according to the data.
The rising urban population contributed to the growth of the out of home (OOH) advertising market. The increase in population in urban cities increases traffic congestion and waiting time. According to INRIX 2019 Global Traffic Scorecard, Boston is ranked as the most congested city in the US losing 149 hours per year to congestion, followed by Chicago (145 hours), Philadelphia (142 hours), New York City (140 hours), and Washington D.C. (124 hours). With people spending more time outside their home in traffic and other areas, OOH advertising holds the utmost importance in advertising. According to the UN World Urbanization Prospects 2018 revision, 55.71% of the world’s population live in urban areas and is expected to increase to 68% by 2050. Over a third of expected urban growth will occur in just three countries – India, China and Nigeria, and by 2050, the expected urban dwellers in India could be 416 million, China 255 million, and Nigeria 189 million. The rise in the urban population in developed and developing countries, which is contributing to the increasing traffic congestion, is driving the OOH advertising market.
Major players in the OOH (Out-of-home) advertising market are Daktronics Inc., JCDecaux SA, Lamar Advertising Co., OUTFRONT Media, Inc., Ströer SE & Co. KGaA, Clear Channel Outdoor Holdings Inc., Exterion Media, oOh!media Limited, Intersection and Watchfire Signs.
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