Market Trends of Brazil OOH And DOOH Industry
Digital OOH (LED Screens) to Witness Major Growth
- Digital OOH is expected to witness growth in Brazil due to the flexibility it offers, allowing advertisers to deliver dynamic and interactive content. These are more effective in high-traffic areas such as urban centers, shopping malls, and transportation hubs. Retailers in the advertising sector are increasingly turning to digital displays. These displays not only showcase products but also elevate promotions and brand messages, enriching the shopping experience.
- Businesses and consumers are investing in real-time conversations, with customers increasingly demanding personalized content. Leveraging real-time data and analytics, DOOH advertisements can tailor content based on factors like weather, time, and location. For instance, ads for salads might pop up near gyms, while pizza ads could target nightlife spots. The potential for dynamic DOOH is providing ample opportunities for revenue growth.
- Billboard advertising in digital out-of-home is the most impactful outdoor advertising medium. It allows advertisers to make it a go-to platform for reaching a broad audience. Moreover, the market is poised for growth with advancements like the rise of 3D and mobile billboards. As per data from the Standard Norms Executive Council (Brazil), advertising spending in Brazil was 10.8% in 2023, which presents an opportunity for growth in the market.
- Moreover, it allows companies to measure the results of campaigns, and there is increased emphasis on measuring the effectiveness of OOH and DOOH campaigns through advanced metrics such as footfall data, dwell time, and audience demographics. It helps companies to justify advertising investments and optimize strategies.
- Brazil is known for hosting major events such as sports tournaments, cultural festivals, and international conferences, which provides opportunities for large-scale OOH and DOOH campaigns targeting local and international audiences. The 2024 Group of 20 (G20) Summit, scheduled for November 18-19, is one such example. The country also offers year-round celebrations, presenting filming prospects. Other events include the Formula 1 Grand Prix in São Paulo, the Brasil Game Show, and the globally acclaimed Tomorrowland festival in 2024, which present opportunities to do OOH advertising to attract consumer's attention.
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Retail and Consumer Goods Hold Largest Market Share
- OOH and DOOH advertising empower retail brands to target consumers in specific geographic areas, like urban hubs and shopping districts, where foot traffic is higher compared to other locations. For instance, in 2023, Brazil announced the launch of five new shopping centers, collectively adding 99.6 thousand square meters of gross leasable area (GLA). Terrazo Shopping, located in Ceará, has an area of 30 thousand square meters of GLA, and it commenced its operations in July 2023.
- In April 2023, JCDecaux SE, the global leader in outdoor advertising, signed a significant deal with Carrefour Group Brazil, the nation's retail giant. The agreement centers on an advanced DOOH Retail Media solution supported by advanced data analytics. This strategic partnership helped establish JCDecaux's foothold in Brazil and also leveraged the country's extensive street network. Brazil has over 18,000 strategically placed advertising panels, primarily concentrated in its 11 vital urban centers.
- Advertisers and brand owners across the country are increasingly seeking innovative media for their advertising, fueling the growth of the out-of-home market. Moreover, growing competition is prompting organizations to prioritize impactful OOH campaigns, facilitating the demand for ooH solutions and, in turn, enhancing their visibility and driving business growth.
- Moreover, the country's OOH market is poised for a promising future, largely driven by the surge in digital displays. Notably, the digital OOH segment has outpaced its static counterpart in recent years. Yet, propelled by technological advancements, the static OOH segment is projected to maintain a substantial market share in the near future.
- Retailers are utilizing data analytics and audience insights to optimize OOH and DOOH campaigns. This includes targeting specific demographics, tracking consumer behavior, and measuring campaign effectiveness in real-time. Contextual targeting enhances the relevance and effectiveness of OOH advertising and helps increase the return on investment from advertising campaigns.
