How big is the outdoor advertising market
Outdoor advertising, also known as out-of-home (OOH) advertising, includes billboards, transit advertising, and other forms of advertising that reach consumers when they are outside of their homes. According to a report by the Outdoor Advertising Association of America (OAAA), outdoor advertising spending in the United States alone was over $8 billion in 2021.
One of the main drivers of this growth is the increasing popularity of digital billboards. Digital billboards, which can display multiple ads in a single location and change them frequently, have become a popular choice for advertisers looking to reach a wide audience.
Another factor contributing to the growth of outdoor advertising is the increasing use of data and analytics. Advertisers are now able to use data to better target their outdoor advertising campaigns and measure their effectiveness. For example, companies can use data on consumer demographics and location to display ads on billboards that are most likely to be seen by their target audience. They can also use data on consumer behavior to determine the best times of day to display their ads.
The continued growth of out-of-home advertising has also been driven by the increasing use of mobile devices. With more people using smartphones and other mobile devices, advertisers are able to reach consumers with location-based advertising, such as ads that are displayed on mobile apps when consumers are near a specific location.
In addition, the COVID-19 pandemic has affected the out-of-home advertising market, as people spend more time outside of their homes and are more likely to see outdoor advertising. With more people going outside for exercise, running errands, and other activities, outdoor advertising has become an increasingly effective way for advertisers to reach consumers.
Despite these factors, the outdoor advertising industry has also faced some challenges in recent years. One of the main challenges is the increasing competition from online advertising. As more and more consumers turn to the internet for information and entertainment, advertisers are also shifting their spending to online platforms. However, outdoor advertising still has a key role to play in the advertising landscape, as it allows advertisers to reach consumers in a way that online advertising cannot.
Overall, outdoor advertising has grown in recent years, driven by factors such as the increasing popularity of digital billboards, the use of data and analytics, the growing use of mobile devices, and the impact of the pandemic. While the industry faces challenges from online advertising, it is likely to continue to play an important role in the advertising landscape in the future.