Bureau, New Delhi
Technavio's market research analysts predict the global market for digital OOH to grow at a CAGR of around 12% between 2016 and 2020. The growth of the market is spurred by the rapid decline of physical billboards. Digital billboards are gaining prominence because of their ability to engage audience effectively. The cost of digital advertisements has decreased over the past decade, which, in turn, increases the affordability of these advertisements to enterprises of all sizes. During 2015, the global digital out of home (OOH) advertising market was dominated by APAC with a market share of around 54%. The large population base of the region is fueling the growth of the digital OOH market in APAC during the forecast period.
The new market research report from Technavio presents a breakdown and analysis of the digital OOH segments based on the application.
"A significant ongoing trend in the market is the shifting media landscape. With the availability of numerous advertising channels, advertisers in developed economies are shifting their advertising spending to digital and online outlets, including social media, in the last couple of years. This is resulting in the decline of conventional advertising. With the rising penetration of the Internet and real-time advertising, customizable advertising campaigns have gained immense popularity in recent times, prompting OOH advertisers to expand their traditional offerings to digital and mobile platforms," says Ujjwal P. Doshi, Lead Analyst, Media & Entertainment, Technavio Research.
By 2020, the retail segment will account for about 43% of the market's revenue to become the key revenue generator in the global digital OOH market. Digital advertising has grown in prominence due to which the need for customer interactivity was fulfilled by turning the digital signs into interactive kiosks. This provides better customer service and the interactive option for the customers will only grow in the future. As a result, consumer electronics have also started to integrate with digital signage to enhance customers' experience.
The key vendors in the market include Clear Channel Outdoor, JCDecaux, Lamar Advertising, and Outfront Media. The global digital OOH market is matured, concentrated, and highly competitive. The presence of several local and global vendors implies intense competition in the market. Besides, rapid advances in technology and digital technology present a significant risk to providers. To survive and succeed in this competitive environment, it becomes imperative for vendors to distinguish their product and service offerings through a clear and unique value proposition. Vendors not only have to develop new technologies but also need to be up-to-date with the emerging technologies that could influence product lines.