Digital Out-of-home Advertising Industry Overview
The global digital out-of-home advertising market size is expected to reach USD 16.8 billion by 2028, registering a CAGR of 13.8% from 2022 to 2028, according to a new report by Grand View Research, Inc. The growing rapid urbanization in emerging economies is accelerating market growth. The increasing popularity of digital outdoor advertising among the various industries in recent years to offer information about their company and products is expected to accelerate the market growth. Moreover, the rising effectiveness of digital out-of-home advertising in developing countries due to variables like creative ad design, consumer perception, and geo-location is up surging the market growth in the upcoming years.
Digital out-of-home Market Segmentation
Grand View Research has segmented digital out-of-home advertising based on format, industry vertical, and region:
Based on the Format Insights, the market is segmented into Billboards, Street Furniture, Transit & Transportation, Place-based Media
- The billboards segment contributed to the largest market share of around 40% in 2021 and has expected to expand at a CAGR of 12.2% from 2022 to 2028. The growing smart advertisement has enabled digital outdoor billboards to interact with the target audience is expected to accelerate the market growth.
- The transit & transportation segment is expected to expand at the fastest CAGR of 15.7% from 2022 to 2028. The rising adoption of the LCD screen in the taxi, buses, or trains for displaying multiple advertisements on a single display is accelerating market growth. Moreover, the increasing preferences for public transport like buses, and trains for daily traveling by the consumer are the major driving factor for the market growth. Furthermore, the rising adoption of digital transit & transportation advertising for branding and spreading awareness regarding products is expected to accelerate market growth.
- The street furniture segment is expected to expand at the second-fastest CAGR of 15.0% from 2022 to 2028. The growth of the segment is attributed to its high usage by various advertisers as they get easily noticed by consumers or by-passers. Street furniture can provide coverage to the targeted neighborhood as well as a coverage area with a broad base as a result of which it is highly used for advertising by entertainment, high-end fashion, finance, and packaged goods brand. Thus, due to the aforementioned factors, the adoption of street furniture is increasing and contributing to more revenue generation.
Based on the Industry Vertical Insights, the market is segmented into Automotive, Financial Services, Government, Media & Entertainment, Retail, Real Estate, Restaurants, Others
- The real estate segment contributed a share of around 15% in the global digital out-of-home advertising market in 2021. The rising spending on outdoor advertising by construction industries to promote their properties and to build brand awareness is accelerating market growth. Moreover, the increasing popularity of digital out-of-home advertising for real estate marketing due to the high conversion rate of the ads is accelerating the market growth. Furthermore, digital outdoor advertising provides real estate brands an opportunity for creative flexibility to contextually relevant and timely messaging is accelerating the market growth over the forecast period.
- The government segment of the digital out-of-home advertising market is expected to register the fastest growth, with a CAGR of 15.6% from 2022 to 2028. The rising adoption of digital out-of-home advertising by various governments to bring awareness about schemes and newly introduced policies is accelerating market growth. Moreover, the increase in politically spending on out-of-home advertising during the election campaign and various protests adds to the market growth.
- The automotive segment is expected to expand at a significant CAGR of 14.6% from 2022 to 2028. The growth of the segment is attributed to the elevated use of digital out-of-home advertising in the industry. With the use of digital out-of-home advertising automotive businesses have the ability to launch campaigns in a faster, flexible, and accessible manner to raise the level of awareness among the consumers regarding dealerships and vehicles. This helps in driving the sales of automotive due to which its adoption is increasing hence boosting the market growth.
Digital Out-of-home Advertising Regional Outlook
- North America
- Asia Pacific
- Central & South America
- Middle East & Africa (MEA)
Key Companies Profile & Market Share Insights
The market is characterized by the presence of various established market players of digital out-of-home advertising across the globe. Companies are focusing on launching new functions to meet consumers’ expectations by offering a trending outdoor advertisement format. Moreover, vendors are expanding their reach across the globe with an innovative business model.
Some of the key players operating in the digital out-of-home advertising market include: –
- Stroer SE & Co. KGaA
- Clear Channel Outdoor Holdings, Inc.
- Outfront Media
- oOh!media Ltd.
- Lamar Advertising Company
- Broadsign International LLC.
- Focus Media
- Global Outdoor Media Limited
Order a free sample PDF of the Digital Out-of-home Advertising Market Intelligence Study, published by Grand View Research.