South Africa Out-of-home and Digital Out-of-Home Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 234.52 Million |
| Market Size (2029) | USD 283.14 Million |
| CAGR (2024 - 2029) | 3.83 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
South Africa Out-of-home and Digital Out-of-Home Market Analysis
The South Africa Out-of-home And Digital Out-of-Home Market size is estimated at USD 234.52 million in 2024, and is expected to reach USD 283.14 million by 2029, growing at a CAGR of 3.83% during the forecast period (2024-2029).
- The out-of-home (OOH) and digital out-of-home (DOOH) advertising markets in South Africa are seeing significant growth. With more brands seeking to increase their visibility, the demand for traditional and digital billboards is rising.
- Traditional OOH advertising includes static billboards, posters, transit ads, and other non-digital formats. These mediums are popular in urban areas, highways, and public transportation hubs. Digital OOH (DOOH) advertising is a more modern approach, incorporating digital screens, LED billboards, and interactive displays. These digital formats allow for more dynamic content, including videos and real-time updates. The flexibility of DOOH enables brands to be more creative and timely with their messaging. Their utilization is significant and growing, driving market expansion during the forecast period.
- Furthermore, increased urbanization and infrastructure development worldwide are expected to drive market growth during the forecast period. Again, growing expenditures on outdoor advertising by various industries are propelling market expansion because it allows for the display of several advertisements on a single screen. For instance, in 2023, World Bank data revealed that 68.82% of South Africa's populace resided in urban centers. Urbanization, a key metric, highlighted the urban population's proportion to the nation's total. Concurrently, the country's population density surged to 46 individuals per square kilometer, indicating a trend of more people inhabiting less space.
- Digital outdoor advertising is becoming popular in South Africa since it raises brand awareness among consumers and complements the brand's advertising campaigns on other channels, which are expected to drive market growth. Furthermore, as people spend more time outside their offices and homes, out-of-home advertising allows companies to reach a large number of people regularly and quickly, boosting the market growth during the projection period.
- However, advertising regulations can vary by region, affecting where and how OOH and DOOH ads can be placed. Brands need to navigate these regulations to ensure compliance and avoid penalties. Moreover, while technology enhances DOOH advertising, it also comes with its own set of challenges. High installation and maintenance costs can be a barrier for smaller brands. Additionally, ensuring that digital displays are always operational requires ongoing technical support. The volatility of the cost of advertising may hinder the growth of the digital out-of-home (OOH) advertising market.
South Africa Out-of-home (OOH) And Digital Out-of-Home (DOOH) Market Trends
Transit Accounts for a Significant Share of South Africa Out-of-home (OOH) and Digital Out-of-Home (DOOH) Market
- Transit advertising, including OOH and DOOH formats, offers high visibility to a captive audience. Commuters in South Africa spend significant time traveling in public transport, making it an ideal medium to reach a broad audience. The surge in travelers' demand for digital content led to the rise of interactive commercials on various advertising platforms, including kiosks, billboards, and signboards. This shift notably bolstered transportation media revenues.
- Moreover , transit advertising allows brands to target specific demographics based on the routes and locations of transit vehicles. This targeted reach helps maximize the impact of the advertising message. Transit advertisements provide continuous exposure to the audience. Whether on buses, taxis, or train stations, these ads are constantly in view, reinforcing brand messages and increasing brand recall.
- Furthermore, transit advertising can be a cost-effective option compared to other forms of media, especially for brands looking to reach a specific local or regional audience. DOOH formats in transit advertising allow dynamic content updates tailored based on the time of day, location, or specific events. This flexibility enhances the relevance and effectiveness of the advertisements.
- The integration of technology in transit advertising, such as interactive displays, QR codes, and mobile integration, provides innovative ways to engage with commuters and gather valuable insights on consumer behavior. This trend has reshaped consumer behavior, enhancing customer engagement across transportation modes. Consequently, companies had strategically solidified their brands in customers' minds, potentially diverting them from traditional media in the subsequent years.
- Airports, especially favored for advertising top-tier and luxury products, had increasingly explored innovative revenue-generating strategies. By transitioning from static posters to dynamic digital displays, airports attracted multiple sponsors, significantly boosting their revenue streams. Furthermore, collaborating with advertising partners has helped airports share the financial load of adopting new advertising technologies.
- Building on the momentum from airports, railways had swiftly embraced digital out-of-home advertising. The push for smarter railway stations in emerging markets had further fueled the demand for DOOH advertising.
Retail Sector to Register Significant Growth
- OOH and DOOH advertising allow brands in the retail sector to target specific locations where their target audience is likely to be present. This targeted approach helps in reaching potential customers who are in proximity to retail stores, malls, or shopping areas.
- Moreover, retail brands can enhance their visibility and awareness through OOH and DOOH advertising, especially in areas with high foot traffic such as shopping districts and malls. These mediums provide continuous exposure to the brand message, leading to increased recognition among consumers.
- OOH and DOOH advertising are effective channels for promoting special offers, new products, and promotions in the retail sector. Digital displays allow for dynamic content changes, enabling retailers to showcase real-time deals and product information to attract customers.
- For instance, in December 2023, JCDecaux, an outdoor advertising company, unveiled its Programmatic Digital Out-Of-Home (prDOOH) initiative in South Africa. This launch was made possible through a collaboration with VIOOH, a leading global platform for premium DOOH home supply. JCDecaux South Africa had a network of over 170 digital screens strategically placed in shopping malls, railway stations, roadsides, and airports, all accessible for programmatic purchasing. This move allowed advertisers to reach audiences spanning seven provinces, notably Gauteng, Western Cape, and KwaZulu Natal. Noteworthy benefits of programmatic DOOH included enhanced control, transparency, and the flexibility to fine-tune targeting, contextualization, and optimization strategies.
- Interactive features in DOOH advertising can provide an engaging and immersive experience for customers. Retailers can use interactive displays to showcase product catalogs, offer virtual try-on experiences, or provide personalized recommendations, enhancing the overall customer experience.
- For instance in Coca-Cola, in collaboration with Simply Black and Primedia Outdoor, announced the launch of a pioneering Programmatic Digital Out-of-Home (DOOH) campaign in Namibia. This campaign was part of their "Take Home the Magic Ingredient" promotion. This move marked a significant milestone in Namibia's advertising landscape and set a high bar for the African continent. By embracing programmatic DOOH technology, Coca-Cola not only elevated its branding strategy but also showcased its innovative outlook.
- OOH and DOOH advertising offer the flexibility to target local or hyperlocal audiences. Retailers can tailor their advertising messages based on the demographics and preferences of specific neighborhoods or communities, leading to more personalized and relevant communication.
- With advancements in data analytics, OOH and DOOH advertising in the retail sector can leverage consumer insights to optimize ad placements and strategies. Data analytics allows retailers to measure the effectiveness of their campaigns, track customer engagement, and make data-driven decisions for future advertising initiatives.
South Africa Out-of-home and Digital Out-of-Home Industry Overview
The South Africa Out-of-Home (OOH) and Digital Out-of-Home (DOOH) Market is highly fragmented. The industry comprises several large outdoor advertising and media companies with operations in multiple markets and smaller local companies operating a limited number of structures in one or a few local markets.
- June 2024: South Africa's programmatic digital out-of-home (DOOH) publisher network announced plans to extend its global reach. This move underscored its commitment to providing marketers a unified gateway to the continent's most extensive DOOH inventory. By June, Polygon rolled out advertising inventory in Namibia, Botswana, and Zambia. Following this, in August, it expanded its offerings to include Mauritius, Ghana, and Kenya. The network's ambitious expansion did not stop there; by year-end, Nigeria, Uganda, Zimbabwe, Mozambique, and Angola were also integrated into its inventory.
- April 2024: Provantage, a provider of Out-of-Home (OOH) media and full-service marketing solutions pioneered the first comprehensive, globally recognized audience measurement tool for Place-Based Networks (PBN) in the South African OOH sector. Provantage Tracking – or Protrack – employed the internationally proven AllUnite audience measurement technology platform, which provided verifiable audience measurement in the OOH context. This proprietary platform launched in key DPBN (Digital Place-Based Network) and digital billboard sites – environments in which Provantage had the largest holding in South Africa – and was set to be extended to additional PBNs including static media in the near future.
South Africa Out-of-home and Digital Out-of-Home Market Leaders
-
Apg Sga
-
Clear Channel Outdoor Holdings
-
Dentsu
-
Focus Media Information Technology
-
Hakuhodo Dy Holdings
*Disclaimer: Major Players sorted in no particular order
South Africa Out-of-home and Digital Out-of-Home Market News
- June 2024: Mediabridge, a UK and international OOH planning and buying business, announced a strategic partnership with Taptap Digital to put location intelligence data and technology at the heart of their OOH planning capabilities. Mediabridge used data and technology to deliver area-based marketing to clients worldwide.
- May 2024: Location Media Xchange (LMX), the supply-side technology arm of the Moving Walls Group, announced the launch of a comprehensive Revenue Management suite tailored for out-of-home (OOH) media proprietors. This suite streamlined operations by consolidating traditional, programmatic, and other campaign booking data into a single online platform. Moreover, it seamlessly integrated with both in-house and third-party applications, such as content management and accounting systems.
South Africa Out-of-home (OOH) And Digital Out-of-Home (DOOH) Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions & Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Buyers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitutes
4.2.5 Intensity of Competitive Rivalry
4.3 Industry Value Chain Analysis
5. MARKET DYNAMICS
5.1 Drivers
5.1.1 Increase in Public Transit Infrastructure
5.1.2 Increasing Adoption of Digital Screens
5.1.3 High Advertising Flexibility with Connected Screens
5.2 Restraints
5.2.1 High Installation and Maintenance Costs
6. MARKET SEGMENTATION
6.1 By Platform
6.1.1 Physical Outdoor Advertising
6.1.2 Digital Outdoor Advertising
6.2 Application
6.2.1 Billboard
6.2.2 Transit
6.2.3 Street Furniture
6.2.4 Other Applications
7. End-User
7.1 Retail
7.2 Healthcare/Pharmaceuticals
7.3 Financial Services
7.4 Automotive
7.5 Telecom/Utilities
7.6 Government Agencies
7.7 Other End-Users
8. COMPETITIVE LANDSCAPE
8.1 Company Profiles
8.1.1 Apg Sga
8.1.2 Clear Channel Outdoor Holdings
8.1.3 Dentsu
8.1.4 Focus Media Information Technology
8.1.5 Hakuhodo Dy Holdings
8.1.6 Jcdecaux
8.1.7 Lamar Media Corp.
8.1.8 Ooh!Media
8.1.9 Ströer
8.1.10 Outfront Media
- *List Not Exhaustive
9. INVESTMENT ANALYSIS
10. FUTURE OF THE MARKET
South Africa Out-of-home and Digital Out-of-Home Industry Segmentation
South Africa’s out-of-home (OOH) and digital out-of-home (DOOH) market typically comprises digital signage providers with digital screens across various locations. They partner with different service providers to utilize their real estate to screen digital advertisements for their clients. The integration of real-time data to digital screens is helping advertisers create more creative and interactive content. South Africa’s out-of-home (OOH) and digital out-of-home (DOOH) are segmented by platform (physical outdoor advertising, digital outdoor advertising ), by application (billboard, transit, street furniture), and by end-user (retail, healthcare/pharmaceuticals, financial services, automotive, telecom/utilities, government agencies).
The market sizes and forecasts are provided in terms of value in USD for all the above segments.
South Africa Out-of-home (OOH) And Digital Out-of-Home (DOOH) Market Research FAQs
How big is the South Africa Out-of-home And Digital Out-of-Home Market?
The South Africa Out-of-home And Digital Out-of-Home Market size is expected to reach USD 234.52 million in 2024 and grow at a CAGR of 3.83% to reach USD 283.14 million by 2029.
What is the current South Africa Out-of-home And Digital Out-of-Home Market size?
In 2024, the South Africa Out-of-home And Digital Out-of-Home Market size is expected to reach USD 234.52 million.
Who are the key players in South Africa Out-of-home And Digital Out-of-Home Market?
Apg Sga, Clear Channel Outdoor Holdings, Dentsu, Focus Media Information Technology and Hakuhodo Dy Holdings are the major companies operating in the South Africa Out-of-home And Digital Out-of-Home Market.
What years does this South Africa Out-of-home And Digital Out-of-Home Market cover, and what was the market size in 2023?
In 2023, the South Africa Out-of-home And Digital Out-of-Home Market size was estimated at USD 225.54 million. The report covers the South Africa Out-of-home And Digital Out-of-Home Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the South Africa Out-of-home And Digital Out-of-Home Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
South Africa Out-of-home (OOH) And Digital Out-of-Home (DOOH) Industry Report
Statistics for the 2024 South Africa Out-of-home (OOH) And Digital Out-of-Home (DOOH) market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. South Africa Out-of-home (OOH) And Digital Out-of-Home (DOOH) analysis includes a market forecast outlook for 2024 to 2029) and historical overview. Get a sample of this industry analysis as a free report PDF download.
