Alfi Research Suggests Digital Out of Home (DOOH) Advertising Spend to See Dramatic Increase in Its Overall Share of the Out-of-Home (OOH) Advertising Market
Benefits of DOOH advertising likely to see the biggest influences are ‘added variety’ and ‘increased opportunity for campaign relevance’
In 2019, Digital Out of Home Advertising (DOOH) accounted for approximately 28.3% of OOH ad spend, however 48% of advertising executives believe it will account for over 33% by 2025, according to new research from Alfi (NASDAQ:ALF), an AI enterprise SaaS advertising platform. Furthermore, one in twenty ad executives think OOH advertising spend will account for over 40%.
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“DOOH advertising is one of the fastest growing and most dynamic trends in the advertising sector and it will only intensify in the coming months and years,” said Paul Pereira, CEO of Alfi. “Its ability to deliver high impact and tailored campaigns, with comprehensive and detailed reporting means more advertising executives are looking to use it in their strategies and programs.”
As more advertisers seek ways to find the right person at the right time with the right message, OOH technologies and solutions for enhanced tracking, retargeting, personalization, and greater campaign attribution and measurement are being signaled as priority solutions. The global DOOH advertising market was worth approximately $41.06 billion in 2020, and, by 2026, 81% of surveyed advertising executives predict it will rise to between $50 billion and $60 billion.
Another key reason for growth in the DOOH market is the many benefits it offers and how those are likely to increase in importance. Fifty-six percent of surveyed ad executives expect the importance of the added variety DOOH advertising offers to increase dramatically between now and 2024, and 53% said the same about the campaign relevancy it delivers. Half (51%) said they expect the benefit of DOOH having fewer restrictions such as no ad-blockers, which personal devices can have, to increase dramatically.
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|Benefits of digital out of home advertising||Percentage of advertising executives who think the importance of this benefit will increase dramatically over the next three years||Percentage of advertising executives who think the importance of this benefit will increase slightly over the next three years|
|Increased opportunities for campaign relevancy||53%||34%|
|Lower management costs||40%||46%|
“Digital technology is becoming more and more integrated with the changes in consumers’ interaction with advertisers, and there is more to come,” continued Pereira. “Now it is a matter of finding the right partner that can not only provide these benefits, but also house them under one pane of glass, saving time and money.”
Alfi provides data-rich reporting functionality that informs the advertisers that someone viewed their ad, the number of views, and each viewer’s reaction to the ad. Advertisers are increasingly demanding improved performance and capabilities from the ad technology they utilize. Alfi delivers for advertisers with analytics, accountability, transparency, proof of engagement and actual impressions.
Commissioned by Alfi, PureProfile, a global research company, conducted 100 interviews amongst senior advertising professionals from across the U.S., U.K., France, Germany, and Asia. Interviews were conducted online in June 2021.
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