Outdoor Advertising Market

Outdoor Advertising Market Outlook (2022-2032)

The global outdoor advertising market has reached a valuation of US$ 27.7 billion in 2022 and is predicted to accelerate at a CAGR of 6.4% to top a market size of US$ 51.4 billion by 2032.

Outdoor advertising accounted for 4.2% share of the global enterprise advertising market at the end of 2021.

Report Attributes	Details
Outdoor advertising Market Size (2021A)	US$ 26 Billion
Estimated Market Value (2022E)	US$ 27.7 Billion
Forecasted Market Value (2032F)	US$ 51.4 Billion
Global Market Growth Rate (2022-2032)	~6.4% CAGR
North America Market Share (2021)	~34%
East Asia Market Growth Rate (2022-2032)	~6.8%% CAGR
United States Market Growth Rate (2022-2032)	~6.5% CAGR
Market Share of Top 5 Companies	~7%
Key Companies Profiled	JCDecaux Clear Channel Outdoor Ströer Lamar Focus Media Outfront Media oOh! Media Asiaray APG | SGA Global Media Al-Arabia Ocean Intersection Metrobus Clear media Anchour Insite Street Media Advision Outdoor Lind Outdoor Tyler Outdoor Young Electric Sign Company

Outdoor Advertisement to Account for Leading Share in Customer Engagement

Outdoor advertising is a cost-effective and perpetual solution for many small- and medium-sized organizations to reach mass audiences. Organizations are widely dependent on outdoor advertising with other media platforms to increase their customer base, brand value, and recall rate, as outdoor advertising accounts for around 20% of customers’ daily media consumption.

Moreover, rapid digitalization and a growing focus on targeted marketing are key factors driving the demand for outdoor advertising. Enterprises investing more than 15% in outdoor advertisement observed higher returns than from other modes of advertisement.

• Short Term (2022-2025): Post-COVID, out-of-home advertising services witnessed massive growth. It helped advertisers combat digital device fatigue and cope with various security concerns associated with mobile advertising services.
• Medium Term (2025-2028): The United States and Asia Pacific are expected to have a high number of start-ups and foreign company establishments. The expansion of companies will drive the adoption of outdoor advertising services to have a competitive advantage in the market.
• Long Term (2028-2032): The market is expected to witness significant growth with the increasing popularity of digital outdoor advertising services. Integration of advanced technologies such as Artificial intelligence and Near Field Communication (NFC), among others, that generate real-time viewership analytics, is anticipated to present key players with significant growth opportunities.

From 2017 to 2021, the global market for outdoor advertising agencies increased at a CAGR of 5.6%. As per the detailed analysis by Fact.MR, a market research and competitive intelligence provider, worldwide revenue from outdoor advertising is projected to increase rapidly at 6.4% CAGR through 2032.

Market share analysis of outdoor advertising based on service and region. Under the service segment, the billboards sub-segment dominates with 68% market share in 2022.

Growing Popularity of Digital-Out-of-Home Advertising

Digital advertisements are displayed on real estate, which is easily accessible to the public present in various locations. Because data is displayed on digital screens in real time, digital out-of-home commercials offer unique content that is also more interactive and creative. Digital out-of-home advertising is increasingly being used as a result of the consumer trend for interactive advertisements, which is fuelling market expansion.

The cost-effectiveness of digital out-of-home advertising, which enables ads to reach a variety of audiences, is another factor that will drive market expansion over the projection period.

Integration of Advance Technologies

Integration of advanced technologies such as Artificial Intelligence (AI) and Near Field Communication (NFC) is driving market growth. These technologies generate real-time viewership analytics for end users, which could be beneficial in overcoming the challenges associated with spreading brand awareness and customer engagement. More than 80% of marketing leaders experienced an improvement in customer experience with the adoption of Artificial Intelligence in advertisements.

Near Field Communication is gaining popularity with its inherent feature of providing interactive and instant responses, which are difficult to achieve in traditional modes of advertisements. NFC is beneficial in enhancing customer experience with products; for example, Jameson's Whiskey integrated with NFC labels drove customers to the website where it has outlined various products, price ranges, and the recipes of its limited edition bottles.

Rising Popularity of Social Media Advertising

Increasing popularity of social media advertising worldwide is a major factor restraining the growth of the outdoor advertising market.

With the growing popularity of smartphones and increasing penetration of the Internet, consumers these days are observed to spend more time on mobile phones rather than going outside. This factor is also supported by the shifting consumer preference towards online shopping and the increasing popularity of e-Commerce websites, which has resulted in a significant decline in outdoor shopping.

Due to these factors, outdoor advertising services are expected to experience a significantly moderate growth rate during 2022-2032.

Strict Government Regulations on Out-of-Home Advertising

The presence of strict government regulations on out-of-home outdoor advertising is another factor hampering market growth. Since these services are vulnerable to various threats regarding data security and privacy, they may impact both consumers and enterprises.

• Guidelines are in place by the General Data Protection Regulation (GDPR) in Europe regarding restrictions on the violation of data privacy associated with outdoor advertisement.
• The U.S. also implemented the Highway Beautification Act (HBA) for the efficient placement and sizing of billboards on controlled roads, which is expected to restrict the smooth implementation of outdoor advertising.

Country-wise Insights

Increasing Popularity of Digital Outdoor Advertising in the U.S.

The United States outdoor advertising service market is estimated to expand at a CAGR of 6.5% over the decade.

Growing urbanization and increasing awareness regarding branding is the major factor attributing to the development of the out-of-home advertising service market. Branding is an effective way that can impact the revenue enhancement of an organization by more than 20% when implemented.

Moreover, the increasing popularity of digital outdoor advertising is resulting in significant growth of the U.S. out-of-home advertising market. Digital outdoor advertisings are an interactive way of advertising. It is beneficial in mass customer engagement along with allowing brands to digitalize themselves and display content easily to the general public.

Fast Growth of China’s Outdoor Advertisement Market

In China, growing construction activities of homes and commercial buildings; are resulting in the utility of hoardings and scaffold banners widely as outdoor advertisements. More than 50% of advertisers in China rated the utility of commercial buildings & public transportation hubs as top places for ad placement.

Increasing food & beverage industry and financial service companies in China are also driving the potential development of the market with significant spending on outdoor advertisement. Additionally, the increasing adoption of advanced technologies such as precision outdoor advertising for brand promotion is also driving China’s outdoor advertising market.

Category-wise Insights

Billboard Advertising to Remain Most Popular

Billboards are one of the most popular and effective mediums of advertisement. The Integration of advanced technologies like virtual reality and augmented reality coupled with an increase in digitalization is creating a potential demand for billboards in the global outdoor advertising market. These efficiently interact with target audiences and result in outdoor advertising campaigns being more engaging and instinctive.

Billboards are also an affordable mode of advertisement with more customer attention procurement. Around 80% of marketers say that billboards are less expensive than TV ads. Whereas, more than 50% of consumers often look at roadside billboards.

Overall, the billboards segment is expected to be worth US$ 34.9 billion by the end of 2032.

Digital Outdoor Advertising Space Highly Fragmented

Digital outdoor advertising is becoming more and more popular in the advertising sector since it raises consumer awareness of brands and works in tandem with other marketing initiatives. Additionally, as people spend more time outside of their homes and offices, it enables companies to reach a larger audience quickly and reliably through out-of-home advertising, which is propelling market growth.

Digital out-of-home advertisements provide creative and innovative content with the display of data on digital screens in real time. Increasing spending worldwide on digital outdoor advertisements is expected to stimulate market growth over the forecast period.

Digital out-of-home advertisement spending accounted for more than one-fourth of total out-of-home advertisement spending in 2021. As such, digital outdoor advertisements are projected to see potential growth opportunities in the near future.

Competitive Landscape

Prominent out-of-home advertising service providers are JCDecaux, Clear Channel Outdoor, Ströer, Lamar, Focus Media, Outfront Media, oOh! Media, Asiaray, APG | SGA, Global Media, Al-Arabia, Ocean, Intersection, Metrobus, Clear media, Anchour, Insite Street Media, Advision Outdoor, Lind Outdoor, Tyler Outdoor, and Young Electric Sign Company.

The global outdoor advertising market is expected to be highly competitive with the adoption of various strategic initiatives such as partnerships and acquisitions by the market players.

For instance :

• In 2018, Single Outdoor Advertising, which is a transit & street furniture company, merged with Martin Outdoor Media to offer transit bench, bus advertising coverage and coast-to-coast transit shelter in partnership with municipalities and transit authorities in metropolitan markets such as Atlanta, New York, and others.
• In 2018, Europe-based Global Media & Entertainment Limited acquired Primesight Media and Outdoor Plus. This acquisition is focused on the enhancement of its footprint in the European region.

Fact.MR has provided detailed information about the service providers of outdoor advertising positioned across regions, sales growth, and service offering expansion, in the recently published report.

Segmentation of Outdoor Advertising Industry Research

• By Type :

  • Traditional Outdoor Advertising
  • Digital Outdoor Advertising

• By Service :

  • Billboards
  • Transit Advertising
  • Street Furniture Advertising
  • Placed-based Advertising

• By End-use Industry :

  • BFSI
  • Retail and Consumer Goods
  • Business and Consumer Services
  • Healthcare
  • Manufacturing
  • Transportation and Mobility
  • Energy and Utility
  • Trading and Warehousing
  • Media & Entertainment
  • Hospitality

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • MEA