“Classic Out of Home is the medium’s ‘sleeping giant’”

Out of Home (OOH) advertising is experiencing a dynamic transformation, particularly in Europe, where digital advancements are propelling the industry forward. At the recent WOO Europe forum in Milan, Tom Goddard, President of the World Out of Home Organization (WOO), highlighted the significant role digitisation plays in this growth. Despite digital OOH now generating 40% of revenues in Europe, up from less than 10% of locations, Tom pointed out that a vast opportunity still lies untapped in classic (static) formats.

Classic OOH: the untapped potential

While digital formats have surged in popularity, classic OOH continues to dominate in terms of reach. In the UK, for example, classic OOH formats reach 90% of all adults within a week at a mere 20% of the cost of digital formats. This underlines the untapped potential and cost-effectiveness of traditional static advertising, positioning it as the “sleeping giant” of the industry, according to Tom.

Classic as a branding powerhouse

Tom emphasised that classic OOH serves as an exceptional branding and directional tool. He illustrated this by pointing out that major fast-food chains like McDonald’s and KFC often secure prime static billboard spots long-term because they are proven to drive results. The reliability and consistent reach of classic formats make them an integral part of comprehensive marketing strategies.

Digitisation and global growth

Despite the continued strength of classic OOH, digital formats are undeniably shaping the future. Europe now leads North America in OOH growth, a milestone noted by WOO, while China remains the largest market globally. Overall, the Asia-Pacific (APAC) region accounts for about half of global ad spend on OOH. The global OOH market, valued at $42 billion, now represents over 5% of total global advertising expenditure, signalling a promising outlook for further growth.

The ten commandments for OOH growth

Concluding his address, Tom shared his “Ten Commandments” for driving OOH growth, providing a roadmap for industry stakeholders:

1. Reposition classic formats.
2. Digitise more inventory.
3. Increase ownership consolidation.
4. Measure all formats across all markets.
5. Automate the entire trading process.
6. Support national trade associations and foster collaboration.
7. Control the carbon footprint.
8. Harness the potential benefits of artificial intelligence.
9. Leverage retail media opportunities.
10. Enjoy the work and embrace creativity.

Looking ahead

Tom’s insights at the WOO Europe forum painted a positive picture of the OOH industry’s future, balancing the strengths of both classic and digital formats. As the industry continues to innovate and evolve, the combination of tried-and-true static advertising and cutting-edge digital technology promises a vibrant path forward for OOH on a global scale.