Outdoor Advertising LED Display is Still the Core Channel for Brand Advertising
The global advertising market recovered by 22.5%. Outdoor advertising will grow by 14.9% in 2022.
GroupM Global released its "This Year, Next Year" industry forecast report on the 7th, which shows that the growth rate of the global advertising industry is significantly higher than expected, and the growth momentum mainly comes from the United States, the United Kingdom and China. Data show that the global outdoor advertising led display market in 2021 will grow by 22.5% over the previous year (excluding U.S. political advertising), while Zenith expects an increase of 15.6%, both of which are higher than the previous expectations of the two companies. The companies also expect the global advertising market to grow by about 9% in 2022, excluding U.S. political advertising, up from a forecast of 8.8% in June.
Outdoor Advertising LED Display is Still the Core Channel for Brand Advertising
For its part, GroupM said its underlying growth trends are concentrated in the United States, the United Kingdom and China, which contribute about 70% of the industry's growth and account for about 60% of the industry's market share. Looking at the top ten outdoor advertising led display markets in the next five years, it is expected to return to median or high-digit growth, while China is expected to grow at an average annual rate of 6-8%. In terms of breakdown types, the growth rate of outdoor advertising led screen may reach 30.5% by the end of 2021, which is higher than the 26% forecast in June. Digital advertising accounts for 64.4% of the total global advertising in 2021, which is higher than 60.5% in 2020. In terms of TV advertising, the growth rate is expected to be 11.7% in 2021, which is higher than the 9.3% forecast in June. Considering the 13.7% decline in 2020, it is expected to return to the level of 2019 in 2023. Due to the continuous transformation of advertising channels of large advertisers, TV advertising in most major markets in the world will basically maintain an average annual growth of 1% -2% in the next few years to 2026. Overall, smart TVs will account for 10% of total TV advertising in 2022 ( $17 billion of $171 billion spent) and are expected to double by 2026.
Return to brand advertising from traffic advertising. Outdoor advertising led billboard is still the core channel. We found that the impact of outdoor advertising was mainly caused by the reduction of people's outdoor behavior during the epidemic. WARC mentioned that the outdoor advertising led message sign market in 2021 was due to people's isolation at home, which led to a 28.2% decline in outdoor advertising led billboard investment. But according to the Harris poll, the relevance of outdoor advertising is expanding as post-pandemic consumer mobility returns. The data showed that 42% of respondents said they noticed outdoor advertising more than before the pandemic, and consumers noticed outdoor advertising "more", an increase of 9 percentage points over 2020. While the study is good news for outdoor advertising, this ad fatigue has devastated many brands when it comes to online advertising, where many people often skip online ads, making brand placements less effective. In fact, 62% of respondents said they often ignore ads on digital devices. In addition, 66% are concerned about the impact of online advertising on personal security and data. This means that advertisers and brands are indeed actively seeking secure, privacy-compliant solutions. Under the guidance of the policy, outdoor advertising, which is rooted in people's real-life scenes, has been recognized by more brand owners and consumers in terms of more legal compliance, more creativity, and a better experience.
According to the data of CTR Media Intelligence, in October this year, the cost of traditional outdoor advertising dropped by 21.3% year-on-year, but rose by 2.6% year-on-year; elevator LCD and elevator posters rose by more than 20% year-on-year; cinema video advertising increased significantly, rising by 70.3% and 120.9% year-on-year and year-on-year respectively. Outdoor advertising led display TOP10 brands mainly come from eight industries, including beverages, cosmetics/bathroom products, IT products and services, and household appliances. The advertisements of Junlebao, Mengniu and Tmall cover more than four channels; Skincare products brand Mofa Family, beverage brand adopting a cow, household appliances brand singing bar, beauty care brand Unlike all focus on advertising in the elevator scene, and the advertising expenditure of App and Jiannanchun in the elevator LCD also accounts for more than 90%.
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