Market Trends of United States OOH And DOOH Industry
Ongoing Shift Toward Digital Advertising Aided by Increased Spending on Smart City Projects
- The United States' increasing focus on smart city initiatives is propelling growth in the OOH and DOOH advertising markets. These initiatives are bolstering the advertising landscape by introducing advanced infrastructure, such as digital screens and interactive kiosks. Moreover, with the advent of IoT and 5G, connectivity has been significantly enhanced, enabling advertisers to deliver real-time, data-driven campaigns that are not only more relevant but also highly engaging.
- Smart city advancements not only boost foot traffic but also enhance the visibility of advertisements. Moreover, as smart cities prioritize sustainability, they unite with the trend toward digital advertising, lessening the dependence on printed materials and resonating with environmentally conscious consumers. This synergy significantly bolsters the efficacy and outreach of both OOH and DOOH campaigns.
- In October 2023, the New York City Office of Technology and Innovation (OTI) introduced the new Smart City Testbed Program, which would include government collaboration with outside organizations to roll out eight pilot technology projects.
- Moreover, the rising digital advertising is augmenting the growth of the OOH and DOOH markets in the United States by leveraging technology to create more dynamic and engaging ad experiences. Digital billboards and screens, with their real-time content updates and interactive features, captivate audiences, driving higher engagement. Advanced data analytics further refine ad targeting, elevating relevance and impact. Digital formats' flexibility enables platforms to display multiple ads simultaneously, optimizing ad space. This digital advertising innovation enhances the appeal of OOH and DOOH to advertisers, fuelling market growth.
- As per the Outdoor Advertising Association of America, in 2023, the United States spent over USD 6.33 billion on billboard advertising, representing over 70% of the country's total out-of-home (OOH) ad expenditure. Transit and place-based advertising each saw expenditures of approximately USD 1.4 billion and USD 568 million.
- In February 2024, Gannett Co. Inc., a media and marketing solutions company focusing on digital platforms and subscriptions, partnered with the USA TODAY Network. This collaboration marks a significant milestone as they are now the official content partner for the Big Ten Conference, the United States' oldest Division I collegiate athletic conference. As a crucial part of the agreement, syndicated content from across USA TODAY Network's local network of more than 200 publications would be featured on BigTen.org. Notable contributors include The Columbus Dispatch, The Des Moines Register, Detroit Free Press, and The Indianapolis Star.
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Billboard Application Segment to Hold Significant Market Share
- Digital billboards are gaining popularity on US streets, offering an effective platform for international product, service, and goods promotion. These billboards are ubiquitous, found not only on highways but also on main streets. Their appeal lies in the ability to swiftly update information on roadside billboards, shopping centers, or even sports stadiums. As per the Outdoor Advertising Association of America, in 2023, the United States witnessed a surge of over 40% in the count of digital billboards, reaching around 16.6 thousand.
- The surge in digital billboard adoption is propelling the growth of the out-of-home (OOH) and digital out-of-home (DOOH) markets in the United States. These billboards provide dynamic, real-time content, enhancing engagement with their vivid displays. Advertisers leverage this by swiftly updating messages, incorporating motion graphics, and customizing ads based on real-time data, including local events and time of day. Digital billboards, with their flexibility, not only enhance campaign effectiveness and reach but also offer valuable analytics, enabling advertisers to build more precise and efficient strategies.
- In November 2023, Clear Channel Outdoor Americas (CCOA) and the United Service Organizations (USO) are collaborating on a nationwide digital out-of-home (DOOH) media campaign. The campaign aims to encourage public support for US military personnel and their families. The prime aim is to boost awareness and encourage civilians to stand in solidarity with veterans.
- In April 2024, Vistar Media, a global provider of technology solutions for out-of-home (OOH) media, revealed that Lamar Advertising Company, a player in the global outdoor advertising landscape, chose Vistar's Cortex, a content management software (CMS), to drive its extensive network of digital out-of-home (DOOH) billboards spanning the United States.
- In 2023, Lamar selected Vistar to manage its Denver Transit DOOH network, solidifying a partnership. Lamar, known for its extensive US digital billboard network, provides advertisers access to nearly 5,000 displays, generating over 5 billion weekly impressions. Lamar successfully implemented Vistar's Cortex software suite across its entire DOOH network in under six weeks, achieving zero downtime. This swift and seamless transition highlights the tailored efficacy of Vistar's Cortex, specifically designed to meet the unique requirements of DOOH networks.
