Global spends on DOOH to grow at 10.1% until 2021
By M4G Bureau - November 26, 2018
Spending on traditional sites will start to decline from 2019 while spending on DOOH will continue to rise, according to a WARC report
According to a new WARC report ‘Global Ad Trends’, global spending on DOOH advertising is expected to grow 10.1% each year between 2018 and 2021. Digital’s share of total global OOH adspend is expected to hit 37.3% – or $14.6bn – in 2018 (up from 34.8% in 2017, 32.4% in 2016 and 22.7% in 2012).
The report suggests that spending on traditional sites will start to decline from 2019 while spending on DOOH will continue to rise as major providers like JC Decaux and Clear Channel accelerate their investment in digital sites which give advertisers the opportunity to combine data-driven targeting with powerful, dynamic creative.
Alongside the growing penetration of digital sites, growth in the value of DOOH spending is being driven by the higher cost-per-thousand (CPM) the format commands, the report adds. It has been cited that the DOOH sector has seen a surge in interest, as digital has unlocked new possibilities – search is a key benefactor when included in the mix with OOH, for example. Mobile click-through rates (CTRs) increase by up to 15% when supported by OOH, and research has indicated that 46% of US consumers used a search engine as a result of seeing an OOH ad.