Market Trends of Mexico OOH And DOOH Industry
Digital OOH is Expected to Witness the Highest Growth
- Digital OOH is expected to grow as it helps advertisers with enhanced targeting and dynamic content capabilities, making digital billboards more appealing to advertisers. Interactive and digital elements in bus shelters, kiosks, and urban panels are increasingly used to help effectively engage consumers.
- Digital displays with touch screens, sensors, or mobile connectivity offer dynamic message changes and user interaction. The expansion of digital infrastructure primarily fuels the DOOH market's growth. As high-speed internet and smart technologies see wider adoption, digital billboards and interactive displays are gaining traction, proving more viable and impactful.
- As per the capital's government data, Mexico City has 338 operational shopping centers, collectively catering to the country's diverse needs. In 2023, Centro Comercial Santa Fe emerged as the city's largest mall, having a substantial gross leasable area (GLA) of 128,000 square meters. Notably, Mitikah has a GLA of 105,000 square meters. The growth of shopping centers encourages advertisers to invest in outside advertising to reach a wider audience that visits malls.
- The continuous advancements in high-resolution, long-lasting display technologies present lucrative growth prospects. Technologies like OLED and 4K screens deliver crisper visuals, which are vital for attracting consumers, especially in bustling outdoor settings.
- The companies are also utilizing DOOH for live events, sports, and concerts, which can offer brands a dynamic platform to engage with audiences in real time. For instance, in November 2024, Mexico is set to host the WTA Finals, promising an exciting year for sports enthusiasts. Additionally, events like the Mexico City Marathon, Festival HERA HSBC, and Festival Arre are shaping the demand landscape for local businesses in Mexico, providing them with opportunities to invest in DOOH advertising to promote their product and services.
Understand The Key Trends Shaping This Market
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Billboard Holds the Largest Market Share
- The billboard segment holds the largest market share because out-of-home advertising stands out for its capacity to amplify brand awareness. Being omnipresent and continuously visible, OOH provides a platform for prospective brands to establish recognition among their target audiences long before the actual purchase.
- In the competitive travel and tourism industry, brands invest for consumers' attention. Out-of-home (OOH) advertising stands out as a prime tool for the brands, offering visibility and a chance to set themselves apart. These ads are strategically placed in feeder cities, which channel travelers to major hubs or gateway cities at their final destination. Mexico boasts its unique OOH landscape, with certain formats proving more effective, visible, or readily available than others.
- The market players are incorporating creative innovations such as 3D displays, augmented reality (AR), or integrated sensors to create memorable brand experiences. For instance, in September 2023, MobilAds Inc., the US mobility and rideshare advertising firm, unveiled its global expansion plan. The company set up a new subsidiary in Mexico, primarily to expand its out-of-home (OOH) advertising landscape in the country.
- Advertising in airports and other transit hubs strategically positions a brand in front of audiences, capturing their attention while traveling. This presents a prime chance to enhance brand recognition. Airport advertising ensures that brands engage with potential customers even before they finalize their travel plans, increasing the likelihood of brand recall at the point of purchase. According to the National Travel and Tourism data, the number of US travelers to Mexico in 2023 stood at 36.71 million, marking a notable increase from the previous year's 33.54 million.
- Converting static billboards to digital formats enables real-time content updates and dynamic advertising. Companies are also leveraging data analytics to measure campaign effectiveness, audience engagement, and ROI, providing valuable insights for advertisers.
