The out-of-home media sector is enjoying a global growth spurt courtesy of a jump in sales across the Asia Pacific region, which is now the single most important territory for OOH. It posted $13bn in revenue for 2018, equivalent to a global market share of 5.6%.
These figures were compiled by Magna and Rapport in a new joint report which illustrates how APAC far outstrips Europe, the Middle East and Africa, which lags behind on $9bn, not to mention North America which sits at just $8bn.
Drilling down further into the data just three countries account for over half (52%) of the world’s total OOH ad sales in terms of individual markets, led by the US whose share reached around $7.4bn in 2019 – close to a quarter of the total.
Michael Cooper, global chief executive of Rapport, said: “There has never been a more exciting time in the OOH (out-of-home) industry. The industry has exploited all the benefits of evolving digital technologies, but retain a unique geographical footprint in a way that no other medium can. Spotify, Amazon, Apple, Netflix, Hulu and all the tech companies you are excited about, have dramatically increased their spending in OOH advertising, across almost every world market in 2018, with very good reason”.
Gurpreet Singh, managing director of Magna APAC, commented: “Growth in OOH spends is being largely driven by growth in digital OOH in most markets, and this will continue to be the big growth driver in coming years. As data & technology play an increasing role in OOH media, trading will move from buying ‘space & time’ to ‘impressions’ and ultimately we can expect it to move from buying ‘opportunity to see’ to ‘actual views and engagements’, bringing more accountability to this media. Interesting times ahead for OOH.”
The report makes positive reading for those invested in OOH, singling out the sector as the sole traditional advertising format to achieve consistent growth over the past decade.
Global OOH ad sales are now predicted to grow by a further 2.8% over the five years to 2023 when it will be worth an expected $38bn, a period in which traditional media ad sales are expected to remain flat.