As per the reports by Out of Home Advertising Association of America, brands such as Facebook, Pepsi, Pfizer, Uber, and others are leveraging outdoor advertising to a great potential. And their advertising spending on outdoor media is doubled every year.
Other categories include government, politics, private organization, insurance, and Real estate which saw spending growth of 14.6%
Educational Institution such as Schools, camps, and seminars saw an upward trend of 13.2% in 2018.
While in automotive and restaurant sector, the spending declined by 5.4% and 5.1%.
The Reason for Growth Of Out Of Home Advertising
Outdoor advertising growth is unparalleled; that is why it has been so much reliable for advertisers over the years. Another important reason for the success of outdoor advertising is discussed below. Take a look!
- Targeting:Outdoor advertising is extremely targetable to multiple demographic audiences. As most of the outdoor ads are placed where a large number of people came across it; hence, it is likely to be seen by people from all walks of life. Plus, the advertising is placed in public spaces where a sudden burst of people happens. Thus, it rapidly flows in the mind of the people, which in turn makes it pretty fast to work.
- Consumption: The ads are incredibly engaging and interactive, which is why people consume them a lot in comparison to print, television, and digital ads which are easy to skip and ignored. As the ads are quite large, they catch more sets of eyes which in tandem causes more advertising message consumption.
- Cost: Although the start-up advertising cost is pretty high, the ad spending per view is quite low. This reason makes outdoor advertising quite cost-effective and easy to reach a varied type of audience for the brands.
- Reliability: Outdoor advertising has viewed to win a great deal of trust of marketers in producing effective results and meeting their advertising goal. This is pretty much the reason marketers continue to pour in more and more money in targeting customers via a medium such as billboards, transit advertising, outdoor signs, and POS displays.
- Innovation: Out of home advertising continues to work more effectively with more and more change taking place in the outdoor display advertising. Revolutionary advert solutions such as digital billboards, Digital displays, posters, signs completely transform how the prospective customers react and take action by viewing ads. Therefore, this is one of the primary reasons for propelling the growth of outdoor advertising.
Outdoor Advertising Spending Forecast for Coming Years 2020 and Ahead
According to the Reports published by CNBC, global advertising spending is slowing down but will rapidly pace in 2020. This report includes ads spending on digital, print and outdoor advertising channels.
A report by the World Advertising Research Center projected that internet advertising would swallow the majority of global media by 2020. The report highlights internet advertising spending is going to grow 5 X faster than other media. Display ads are the most crucial ones for growth.
However, these numbers are entirely far away from reality, at least, what the figures are shown in the research publication highlights.
The more believable Forecast from GroupM supported the prediction and projected that outdoor advertising would outpace ad spending of newspapers in 2020. And, the expense will grow to $40 billion, which is $4billion more compared to the previous one.
This data brings in outdoor advertising into the limelight, which is dominating the media spending. And eventually, garner the attention of marketers to put their advertising dollars more on OOH media than print ads.
Further, the ad spending is projected to surpass print and magazine advertising till 2024 ultimately. This spending will see a growth of 2.5 to 4% in the coming years.
Final Words
Outdoor advertising medium such as billboards has a long history of 5000 years which is still rising to the peak. And as more and more innovation and technological advancement take place, the advertising landscape will witness outdoor advertising taking more shares in global media spending. This growth is a positive signal for companies small, medium and large size that are heavily reliant on traditional outdoor media until they can afford other forms of advertising. Moreover, the results that the OOH brings win itself unwavering attention whatever the case may be.
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