Outdoor fixed led screen global digital media huge market

Outdoor fixed led screen global digital media huge market

 

Global outdoor fixed led screen advertising revenue has grown every year for the past nine years (2010-2018), with a compound annual growth rate of 4.1% and reaching $31 billion by 2018.

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OOH (outdoor advertising) is the only traditional media branch market that can achieve advertising revenue growth. Global outdoor advertising revenue has grown every year for the past nine years (2010-2018), with a compound annual growth rate of 4.1% and reaching $31 billion by 2018. At the same time, advertising revenue from traditional non-digital media (television, print media, broadcast and OOH) has stagnated (-1.5% over the past four years).

Therefore, in the total sales of traditional media, the share of OOH increased from 7% in 2010 to 10% in 2018. From the perspective of all media sales (traditional and digital), OOH's share remained stable at 6%, TV's share fell from 41% to 33%, and print share dropped from 28% to 10%.

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OOH is superior to other traditional media formats for a variety of reasons:

The number of audiences. As consumers become more mobile, OOH will not be affected by the scope or brand safety issues affecting digital media. Technical help. Digital innovation has driven OOH's performance and appeal in many ways. High-yield digital billboards are built on classic websites and new cities, with better audience measurement and data usage, enabling real-time optimization of cross-media activities. MAGNA expects OOH advertising revenue (+ 2.8%) in the next five years (2019-2023) to once again exceed global growth rates, while traditional media advertising overall declined by 1.7%.

The largest contributor to retail OOH advertising revenue. Other vertical industries include entertainment (pay TV and movie distribution), fast food service, travel and beverages. Over the past two years, the Internet and technology giants have increased their advertising budgets for traditional branded media, driving OOH growth. The increasing use of OOH by digital media giants demonstrates the efficiency of OOH and is a factor in future growth as marketing spending in this area is bound to increase.

OOH stocks are stable, but due to regulatory pressures and media owner strategies, roadside billboards are slowly declining, while sales of other parts (transports, street furniture and shopping malls) are growing.

Digital outdoor advertising units generated nearly $6 billion in revenue in 2018, accounting for 18% of global outdoor advertising sales, three times (6%) in 2010. In the past five years, DOOH sales have increased by 16% annually. There are now more than 300,000 digital ad units worldwide, compared to 160,000 four years ago.

Some markets are far ahead of DOOH's revenue share, with UK and Australia's DOOH share reaching 50%. The United States is close to the global average (17%). MAGNA predicts that the share of DOOH will reach 23% by 2023, and the compound annual growth rate of 2019-2023 will be 12%.

The OOH industry is undergoing integration. By the end of 2018, the top three outdoor advertising providers controlled 63% of OOH sales in the top 20 markets. In the UK and Australia, the proportion of the top three jumped to around 90%.

China's advertising sales champion, the global Chinese president's excellent marketing instructor and the first person in China's advertising media training, brand competition and cutting leadership art founder and head coach Peng Xiaodong instructor: "The media is unbounded, the competition is Absolutely necessary, because all traditional media industries must compete to match the size of the Internet giant."

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In the age of Internet advertising, your every move is under "monitoring". It seems that the whole city is tracking you, and each browser and platform is even more aware of your needs than you.

Surprisingly, outdoor advertising, this old-fashioned form of advertising is also in the heyday of the industry.

Funds used to advertise on billboards, buses, and baseball fields are expected to set a new record this year. According to Zenith, an advertising analytics company, global outdoor advertising spending is expected to reach $38 billion this year, up 3% from last year and 35% from 2010.

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This is the fastest growing non-Internet advertising medium besides movies, and its smaller size makes the percentage increase more obvious, and this growth is mainly concentrated in China. In the past six years, outdoor advertising accounted for 7% of total advertising spending, which outperformed other non-Internet media, including TV. The Outdoor Advertising Association of America data showed that it was consumed in the US last quarter. The most companies include McDonald's, Chevrolet and Coca-Cola, as well as major online companies Facebook, Apple and Netflix.

Technology companies have begun to anti-customer. Netflix and Alibaba have recently invested heavily in outdoor advertising companies. According to reports, Google has launched advertising products for billboards and other outdoor displays.

Why is it now?

This old-fashioned form of advertising is thriving because digital advertising is too common. It is an effective and comprehensive way of covering all digital noise.

Mark Boidman, director of media services at investment bank PJ Solomon, said: “It’s hard for companies to get in touch with the public today, because we’re still unclear who is watching other more classic media channels, or who is watching Internet advertising, even if we figure it out These, we also have difficulty judging whether the user is clicking, not automatically generated by the machine.” PJ Solomon advises companies and investors on the acquisition and sale of media companies, including outdoor advertising companies.

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In fact, digital technology is also driving the growth of outdoor advertising.

Our mobile and digital footprints help us understand our location and our spending more accurately. In turn, advertisers can better understand the impact of outdoor fixed led video wall advertising, such as the number of people who walked before the ad, their demographics, and their purchases.

John Laramie, CEO of Project X, an outdoor fixed led display media trading agency, said: "Without mobile devices, we wouldn't have this level of location data. Most of our work is planned and utilized for large demographics. The data analyzes the audience, where they go and where they are."

Direct-to-consumer brands such as Glossier, Everlane, and Homepolish are the fastest growing brands in the vertical sector. Online brands want to find customers outside the Internet. (Many of these companies also invest in physical retail stores, and some call them "profitable billboards.")

In addition, as the market becomes more and more programmed, outdoor advertising becomes easier to buy. This means that people can use software to buy and sell advertising, which is less labor intensive and more data-driven than offline purchases.

Jonathan Barnard, head of Zenith forecasting, said: "Offline transactions are more and more like Internet transactions."

The actual outdoor fixed led billboards have also become more digital. Advertisers can place multiple ad rotations on one billboard or can tailor an ad to a specific event.

When a blizzard hit Chicago, Project X updated the digital ad for Kmart to show off the snow shovel. Its CEO Laramie said: "You can make a forward-looking response to the incident."

Other brands and agents have also changed the length of the text in digital messages to match the speed of information delivery or to consider the content of the message based on time.

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What is the next step?

More data means more targeted advertising in real life. “By knowing where people go and how they behave in general, we can use data to determine activity: where they go, what they are doing, and which applications they are using,” CMO Stephen Freitas, American Outdoor fixed led screen Advertising Association “We can start to distinguish like-minded people and where they might go or gather. Then we can start advertising in specific places where it is more likely to find such consumers.