‘Ad tech can also provide new opportunities for classic OOH’

Charles Parry-Okeden, Co-Founder and Global CEO, Executive Channel Network & Independent Chair, OMA & MOVE Australia, offered his perspective on the dynamic between DOOH (Digital Out-of-Home) and classic OOH (Out-of-Home) advertising.  He shared his observations on global trends within the OOH-DOOH space.

The expanding reach of DOOH

Charles acknowledged the significant growth of DOOH.  He noted that while the global OOH advertising market was forecast to reach USD 50 billion last year with DOOH as a key growth driver, DOOH’s share of global OOH revenue has increased substantially over the past 5 years.   Specifically, Charles stated that DOOH’s share has grown from 28% to 41%, indicating a strong appetite from media owners and advertisers.

DOOH impact on classic OOH varies by market

Charles pointed out that DOOH is indeed impacting the classic OOH market, but the extent of this impact varies.  He explained that regulatory requirements play a significant role in this variation.  According to Charles, mature OOH markets like Australia and the UK, which have seen considerable DOOH development, now have DOOH revenue shares exceeding 65%-70%.  In contrast, he cited markets like France, where regulatory restrictions limit DOOH development, resulting in a lower growth potential for DOOH (21% in France).

OOH’s increased share of media spend

Charles indicated that the OOH sector is capturing a larger share of the global advertising market.  He highlighted that OOH surpassed a 5% share for the first time in 2024 and mentioned the global OOH industry’s ambitious target of achieving a 10% share.   He believes this target is achievable, referencing Australia’s success where the OOH share has steadily increased to over 7%.  Charles attributed Australia’s OOH share growth to a strong unified approach to industry standards, including audience measurement, and the recognition of DOOH innovation as a key driver for higher industry revenue.   He also acknowledged that programmatic trading of DOOH has contributed to incremental growth by enabling the sector to participate in digital omnichannel campaigns.

The ideal mix: DOOH and Static OOH

Charles believes that brands can maximize their OOH plans by strategically combining DOOH and static OOH.  He emphasized that determining the right mix depends on the client’s campaign objectives and the specific OOH market landscape.   Drawing an analogy, he compared it to the different attributes of linear TV and connected TV.  Charles suggested that classic OOH remains effective for broadcast reach and making a bold brand statement, while DOOH is an effective option for contextual impact and campaign flexibility.  He also noted the enduring role of well-positioned classic OOH due to its unavoidable nature.   Charles referenced an Australian study by Neuro-insight, stating that it showed DOOH was 68% more impactful than classic OOH, while classic OOH has a 100% share of time amongst its audience.

Classic OOH can Compete with DOOH

Charles addressed how OOH media owners operating in the static space can compete with DOOH.  He acknowledged that most OOH media owners have both classic and DOOH inventory but emphasized the role of technology in enabling classic OOH to compete.   He cited the evolution of audience measurement using technology like location data, which provides OOH operators with more detailed insights into audience behavior.  Charles also pointed out that well-positioned classic OOH posters can reach valuable customers and be sold for long-term holdings.   Furthermore, he noted that ad-tech developments like automation create new opportunities for classic OOH by expanding access for advertisers across borders and territories.

Leveraging real-time data

Charles discussed the advantage of real-time data capture with DOOH and how static OOH can leverage real-time data.  While static OOH can’t change its creative message in real-time, Charles suggested using technology like QR codes to direct audiences to a brand’s digital assets for real-time information.  He explained that engaging with digital assets allows for data capture (with permission) and retargeting on mobile.   Additionally, Charles mentioned that location-based data can be used for measurement and attribution to assess the impact of classic OOH on metrics like brand health, footfall, and sales.  He concluded that classic OOH can be effective by leveraging digital ad-tech to drive engagement and measure effectiveness.

Collaboration and future Projections

Charles sees greater collaboration between OOH and DOOH players.  He emphasized that classic OOH remains an important part of the industry, representing 60% of total OOH revenue globally.   He highlighted the benefits of industry collaboration, drawing from his experience with the Outdoor Media Association (OMA) and MOVE in Australia, where collaborative efforts have improved the industry.

Looking ahead, Charles projects that DOOH’s share of the total OOH market will exceed 50% of total OOH spend globally.  He identifies regulation as the primary threat to this growth, while technological advancements and cost-effectiveness continue to create more opportunities.  Charles believes that DOOH’s ability to integrate with omnichannel campaigns and the growth of programmatic trading are key factors in opening up the OOH sector to a wider range of brands in the digital space.