Last year was a very strong year for out of home (OOH) and looking ahead to 2024, this segment promises further growth and transformation. This dynamic industry continues to evolve, give back and provide advertisers with exceptional creative, data-driven strategies and technology-based results.
Overall, global OOH revenues are projected to reach US$38.41 billion in 2023, with DOOH revenues expected to reach US$17.54 billion. By the end of 2024, global OOH revenues are projected to reach USD 45 billion, almost triple. DOOH is expected to see further significant growth and is forecast to grow by 17% - driven by further investment by media owners and increased investment in programmatic OOH (prOOH).
Are you interested in the future of OOH? In this article you will read more about the upcoming trends that will shape the landscape in 2024.
OOH is the cheapest online activation
According to Nielsen and ResSolution's "OOH Activation Study 2023", OOH is the most cost-effective in the long term in terms of online activation (subsequent searches for information about promoted products or services on the Internet). This is because with OOH they pay the least per % activated compared to other media types.
The Nielsen survey shows that although, based on real data, outdoor advertising has the lowest share of total advertising investment (3%), online activation accounts for significantly more (16% to be exact). "This means that online activation as a result of display advertising is the cheapest of all media types, which have a higher share of OOH advertising investment, including the internet," summarises Hana Friedlaender of the results.
OOH is the 2nd most memorable form of advertising
The uniqueness of OOH for commissioners is undoubtedly the fact that it is literally impossible to escape. As part of the outdoor space, it appeals to people in the public realm in their everyday environment. According to surveys, more than 2/3 of people leave their homes every day and head out for work or other activities.
"When it comes to watching any advertising, outdoor advertising is second only to TV advertising and on par with watching a video ad on a computer. Nearly seven in ten adults over the age of eighteen and nearly 4/5 of residents of large cities with populations of more than one hundred thousand have seen an outdoor ad in the past month. Younger respondents and those with a college degree were more likely to have seen it. Its visibility and reach make it an effective tool for building brand or product awareness," explains Nielsen's Hana Friedlaender.
OOH is the least annoying and therefore the most likable of the media
According to the Nielsen survey, OOH ranked first as the least annoying of the different types of media, mainly because people are less annoyed by watching advertising on the move than they are by other entertainment or information-seeking activities. In addition, more than 2/5 of respondents think that OOH can be a pleasant visual element of public space.
OOH is also not only perceived as a means of commercial advertising, but a large proportion of people, namely 71%, are of the opinion that outdoor advertising can play a positive role in supporting charities and public benefit organisations, as well as being an important means of raising awareness of important social and health issues, says H. Friedlaender about the survey.
Another study (Outsmart, Legacy Media) found that OOH has the strongest "ESG credentials" in OOH compared to TV, print and online, which is the highest environmental rating, which only adds to its likeability.
What is the overall context of this?
The demise of cookies is predicted to occur in 2024, meaning the era of highly targeted ads will come to an end and advertisers will have to find new ways to achieve brand goals. We'll see an even greater move by brands towards the use of OOH.
And what are the basic trends and predictions?
Combining creativity and technology
From AR and VR to 3D and AI, DOOH creativity has increased significantly in the past year. In 2024, brands will become even more aware of these opportunities and the potential to engage audiences. According to Neuroscience's "Digital OOH: The Vital Ingredient" research, creative digital OOH executions are proven to increase impact and deliver a significant increase in perception, purchase consideration:
- Dynamic OOH attracts 60% more attention than static OOH
- A well-constructed OOH consumer journey, consisting of quality creative and layout, can increase the likelihood of purchase by up to +35%
- Increase in consumer attention is +15% higher with 3D DOOH compared to 2D
- Up to 3x higher content recall when using live-stream versus conventional dynamic content
Return to brand glory with the help of OOH
OOH is well known for its ability to deliver a decent hit. In 2024, the renaissance of OOH's return as a core brand building channel continues: however, OOH is incredibly powerful in increasing brand awareness (+23%) and brand credibility (+8%). Companies like PepsiCo, McDonald's and HSBC have been leveraging the strengths of OOH to build their brands long term and continuously, and together we will soon see more and more brands following suit.
Continued growth of programmatic OOH
In 2024, Programmatic OOH (PrOOH) technology will continue to evolve and we will see efforts to standardize PrOOH along with more OOH media owners. Programmatic OOH spending is projected to grow by an average of one-third over the next 18 months (VIOOH State of the Nation). The drive toward increasingly digital and data-driven outcomes through programmatic will continue to increase, with consumers demanding more dynamic video content to connect OOH with their other digital media channels. Advertisers will become even more accepting of PrOOH as part of their multi-channel digital strategies.
Retail media + DOOH = buying support
The role of OOH within the retail media ecosystem will continue to gain momentum and DOOH will become a key player in any customer marketing strategy: a well-built OOH journey will ensure that the message reaches the right audience at exactly the right moment, from the start of their journey to the final in-store purchase. A journey built in this way provides brands with a unique opportunity to work with consumers on a continuous basis. Even greater integration of DOOH with retail media networks will enable marketers to increase the performance of their shopper marketing.
Finally: the AI
The trend of using AI from 2023 continues: it's clear that OOH agencies and media owners will continue to integrate AI to improve efficiency, creativity and copy with the intention of creating even more effective OOH campaigns.
Information sources
Talon, Thinking Outside: 2024 OOH Trends & Predictions, 1/12/23
MAM: Výzkum Nielsen: OOH je efektivní reklamou, 20/12/23
Photo: Unsplash.com, Eddie Bugajewski
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