Market Trends of Europe OOH And DOOH Industry
The Digital OOH (LED Screens) Segment is Expected to Drive the Market
- The region is witnessing a surge in the adoption of programmatic digital out-of-home (DOOH) advertising. This shift to programmatic buying enables real-time bidding and targeted advertising, amplifying campaign efficiency and cost-effectiveness. In 2024, a substantial share of DOOH spending is projected to be steered by this trend as programmatic platforms elevate campaign flexibility and measurability.
- Additionally, European media owners are bolstering their DOOH networks, focusing on enlarging their presence with large-format digital billboards and interactive kiosks. This move responds to the escalating need for prominent advertising platforms, especially in bustling urban locales and key transit points.
- For instance, in June 2024, Clear Channel Europe partnered with Vistar Media, a global provider of programmatic software and digital signage solutions for Out of Home, to enhance its programmatic platform, Clear Channel LaunchPAD, in Belgium. This collaboration involves integrating Vistar Media's supply-side platform (SSP) into Clear Channel LaunchPAD. As a result, both Belgian and international advertisers have access to advanced programmatic tools. These tools enable them to plan, execute, and evaluate targeted campaigns efficiently. The campaigns can reach over 1,000 digital screens in Belgium, spanning locations such as stations and high streets. Moreover, the reach extends to a network of over 12,000 screens across Europe.
- The rise of dynamic content in DOOH is propelled by technological advancements and the widespread adoption of 5G connectivity. Advertisers harness real-time data, including weather updates, traffic insights, and user-generated content, to craft ads that are not just engaging but also highly contextual. This strategy not only boosts audience interaction but also amplifies the impact of advertising initiatives.
- WARC, a marketing company, and The Advertising Association, a UK trade association, project a 10% growth in digital out-of-home (DOOH) advertising spending in the United Kingdom for 2024. While DOOH experienced robust growth rates leading up to 2020, the sector faced a significant setback with the onset of the pandemic, witnessing a sharp 40% decline in ad spend that year.
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The United Kingdom is Expected to Hold a Major Share of the Market
- The United Kingdom leads in digital technology adoption within its advertising sector. The widespread utilization of digital screens, interactive displays, and programmatic advertising platforms has been a key driver in propelling the growth of the DOOH market.
- For instance, in 2023, digital advertising spending in the United Kingdom was GBP 29.6 billion, as reported by IAB UK, a London-based Internet marketing service. This marked an 11% increase from the previous year, setting a new record for online ad expenditure.
- Continuous investments in digital advertising infrastructure, such as large-format digital billboards and interactive kiosks, have been pivotal in propelling the market forward. Companies are turning to sophisticated digital solutions to engage consumers, especially in bustling locations.
- For example, in October 2023, Sainsbury's expanded its digital ad screen network, enhancing in-store advertising capabilities. This expansion positions Sainsbury's with the largest connected digital supermarket screen network in the United Kingdom. Brands can now tailor in-store campaigns based on location, weather, events, and ongoing competitions, effectively targeting consumers ready to purchase.
- The UK's high population density and urbanization levels make it a prime landscape for OOH and DOOH advertising. Abundant transit hubs, bustling commercial centers, and high footfall zones offer advertisers extensive exposure. In 2023, the UK boasted a population density of around 281 individuals per square kilometer, as reported by Worldometer. This places the United Kingdom among Europe's most densely populated nations. Contrasting with peers, the United Kingdom surpasses the likes of Germany and Italy in density, aligning more closely with the Netherlands and standing notably ahead of countries like Sweden and Finland, known for their expansive and sparser populations.
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