‘OOH advertising is a $29 billion global industry’
By M4G Bureau - August 17, 2017
The findings come out of a study conducted by MAGNA Intelligence in partnership with IPG Mediabrands’ OOH specialist agency Rapport. The report, is based on an analysis of the global OOH industry and OOH advertising in 70 countries.
The latest Media Economy Report from MAGNA Intelligence focuses on OOH advertising trends globally. The joint study entitled ‘Why Out-of-Home Outperforms’, conducted in partnership with IPG Mediabrands’ OOH specialist agency Rapport, the report, is based on an analysis of the global OOH industry and OOH advertising in 70 countries.
According to MAGNA, OOH advertising is now a $29 billion market, accounting for approximately 6% of the $500 billion global advertising spending. However, OOH market share increases to 10% to 12% in some countries, including France and Russia, compared with other media categories including Internet, TV, print and radio. OOH market share has remained stable in the last five years, hovering around 6%. However, as part of its increasing importance in the media mix, OOH market share has increased from 8% to 10% of traditional media advertising spend, which includes TV, print, radio and out-of-home, among other categories.
The report was based on in-depth surveys in 22 key markets including Argentina, Australia, Belgium, Canada, China, Denmark, France, Germany, India, Italy, Japan, Malaysia, Mexico, Netherlands, Norway, Philippines, Russia, Singapore, Spain, Thailand, United Kingdom and the United States. The objective of the survey was to assess OOH advertising’s sustained growth and impact during a period where offline marketing budgets are stagnating and other media categories are struggling.
Mike Cooper, Global CEO of Rapport said, “With the explosive growth of digital-out-of-home (DOOH), the diversified lifestyle touch points it reaches, and the veritable mountain of mobile driven audience data, we are best positioned to accurately, and in real-time, track audiences and deliver contextually relevant messages through out-of-home media. OOH’s sustained growth on a global scale will further enable us to create engaging consumer experiences.”
Vincent Létang, EVP, Global Market Intelligence at MAGNA said: “Thanks to favourable lifestyle evolutions, innovation and investment from media owners and public authorities, OOH has been the only ‘traditional’ media category to show consistent growth in the last ten years, while TV and radio have stagnated and print sales have declined. MAGNA predicts this will continue: OOH advertising revenue will grow by 3% to 4% per year in the next five years to reach $33 billion by 2021.