Consolidation of players, growth in global brand spending on outdoor advertising and market forecasts — from the joint analysis by Magna and RAPPORT.
The report examines the state of and trends in the OOH advertising market in 70 countries (total spending, spending by segment, «digital» vs. «analog»), including an in-depth analysis of the 20 largest markets (USA, UK, China, India and others).
Outdoor advertising is the only traditional medium whose share of advertisers' global budgets has grown steadily, the report says. Today it is the last advertising format that consumers cannot skip or block, and it can still reach young, active city dwellers.
Over the past eight years, global outdoor advertising revenue grew by an average of 4.1% and reached $31 billion in 2018. Meanwhile, the entire segment of traditional non-digital media (TV, radio, print, outdoor) grew by 0.4% over this period, and shrank by 1.5% over the last four years.
The share of outdoor advertising in total global traditional media sales rose from 7% in 2010 to 10% in 2018.
Taking all media sales into account (traditional and digital), the OOH share remained at 6%. Other media are losing ground. TV's share of advertisers' global spending fell from 41% to 33% between 2010 and 2018, and print's — from 28% to 10%.
Over the next five years (2019–2023) outdoor advertising revenue will grow by an average of 2.8% per year, while total brand spending on traditional non-digital media will decline by 1.7% per year.
Digital — the main growth driver
According to experts, one of the reasons for the growth of outdoor advertising is its ability to place a brand in a «safe» environment, while digital media may show advertisers' ads next to inappropriate content. The segment's further development will be driven by more digital billboards, which will help measure OOH audiences and optimize cross-platform media campaigns in real time.
Digital structures brought the outdoor advertising segment almost $6 billion in revenue in 2018 — 18% of global brand spending on this medium. Back in 2010, digital accounted for 6% of the segment. There are now more than 300,000 digital structures worldwide, compared with 160,000 four years ago. From 2019 to 2023, brand spending on digital outdoor advertising will grow by an average of 12% per year.
In many markets, internet giants such as Google, Amazon, Facebook, Apple and Netflix have entered the top ten OOH advertisers. This trend will also drive the development of outdoor advertising, as global tech companies' promotional spending will only grow.
The market will consolidate
The global outdoor advertising industry is going through a period of consolidation. At the end of 2018, the three leading OOH providers controlled an average of 63% of total outdoor advertising sales in the 20 leading markets. In the UK and Australia, this figure was 90%.
Experts expect further consolidation as traditional media join forces to match the scale of the internet giants. In addition, outdoor advertising needs funding for further digitalization and higher return on investment. In turn, traditional media players are now also interested in OOH assets.
The report was based on research of the outdoor advertising market in 70 countries, (total spending, spending by segment, «digital» vs. «analog»), including an in-depth analysis of the 20 largest markets (USA, UK, China, India and others).