World Out of Home Organization (WOO) president Tom Goddard has told over 200 delegates at WOO’s first in-person Regional Forum that the global market is on a fast growth trajectory with digital OOH leading the charge. But static or ‘classic’ billboards still account for around 60% of global revenues.
The APAC region, which accounts for a third of the world’s Gross Domestic Product, is set to share in the Out of Home industry’s worldwide strong bounce back after the pandemic, Goddard told the conference in Kuala Lumper, Malaysia.
The global market hit a record $37 billion in revenue in 2019 and was on a fast growth trajectory, he said. Global DOOH is leading the growth charge, projected to be close to 50 per cent of all OOH Revenue by 2026. Across APAC it already makes up over 45% of revenue.
But Static OOH shouldn’t be forgotten, Goddard said. “Static still accounts for around 60 per cent of global revenues, which some observers assume is in terminal decline. Not so. Static is forecast to maintain its revenues at flat, which I think is a great result, when you think about inventory moving over to digital.”
Goddard outlined a range of positive dynamics that will increase the growth of OOH.
“Firstly, more and more markets are investing in credible audience metrics, which builds trust, increases confidence, enables intra media comparison and facilitates a common trading language.
“Automation is also a major growth stimulus now. When you invest in automation you also create the ability to trade programmatically and to overlay data.
“And the creatives have fallen back in love with Out of Home, having been dazzled and distracted for a while by on-line, especially with the new darling of the creative community 3D Anamorphic. Every creative on the planet wants to develop one of these.”
External factors are also working in the industry’s favour, he said. “Consumers are suffering from on-line media fatigue and information overload, especially with greater on-line and social media brand safety and fraud concerns causing marketers reconsider the media options.”
Goddard said national trade associations are performing valuable work in increasing industry collaboration and sector level growth. “Five years ago, we had no OOH trade association members. Today we have over 30, including 17 from the top 20 OOH markets. We would like more representation from APAC markets to gain even more collaboration on sector growth initiatives.”
Cathy O'Connor, CEO of Australian outdoor media advertiser oOh!media – owner of wide format business Cactus Imaging - was also a keynote speaker at the forum.
The OMA (Australia) last week announced an increase of 43.7% on net media revenue to $244m for the third quarter of 2022, with digital accounting for 62.5% of media revenue year-to-date.
The World Out of Home Organization is the only global OOH association. Board members include major International companies JCDecaux and Clear Channel, as well as Ströer, Pikasso, Global Outdoor, blowUP media, OUTFRONT Media and Lamar from the US, Selvel One from India, Primedia from South Africa in as well as OOH associations, the OAAA in the US, Alooh from Latin America and the OMA in Australia.