Research by Alfi – Advertising Professionals Expect The Digital Out Of Home (DOOH) Advertising Market To Be Worth Over $50 Billion By 2026
The market was estimated to be worth $41.06 billion in 2020 (2)
65% of advertising executives believe the market will be worth between $50 billion and $55 billion by 2026
30% expect it to be worth more than $55 billion in five years’ time
Alfi’s AI SaaS platform transforming the face of DOOH
New research (1) from Alfi reveals 95% of advertising executives expect the Digital Out of Home (DOOH) advertising sector to grow over the next two years, with 51% anticipating dramatic expansion.
At the end of 2020, the DOOH advertising market was estimated to be worth $41.06 billion (2), but by 2026, nearly two out of three (65%) advertising executives interviewed predict this will rise to between $50 billion and $55 billion. A further 16% expect it to be worth between $55 billion and $60 billion, and 14% estimate it will be even bigger.
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Out-of-home (OOH) advertising is traditional (i.e., non-digital and non-programmatic) outdoor advertising, targeting consumers when they are in public places, commuting to work, or for example in specific commercial locations. Digital out-of-home (DOOH) advertising is OOH powered by technology that provides a number of features including tracking, retargeting, personalising of adverts, and greater attribution and measurement of campaigns.
Alfi Inc. (Nasdaq: ALF) (“Alfi” or the “Company”), an AI enterprise SaaS platform company powering computer vision with machine learning models to allow content publishers and brand owners to deliver interactive, intelligent information without violating user privacy commissioned research with senior advertising executives across the US, UK, France, Germany and Asia.
In terms of how advertising spend on DOOH will change between now and 2026, 50% of respondents anticipate it will rise dramatically and a further 40% expect it to increase slightly.
The main reason for this growth is that there will be a bigger general spend on digital advertising – the view of 66% of senior advertising professionals interviewed.
This was followed by 62% who said advances in technology mean that digital out of home advertising will be able to provide even more analysis around campaigns run on them. Other reasons given for the anticipated increased spend include the general growing focus on evaluating advertising campaigns and the strength of the DOOH market here, and a rapid increase in the number of advertising digital screens being rolled out.
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|Reasons for an expected increase in advertising spend on DOOH over the next five years||Percentage of advertising executives who think this is a reason for expenditure on DOOH advertising increasing|
|There will be a bigger general spend on digital advertising||66%|
|Advances in technology means the DOOH market will be able to provide more analysis on campaigns||62%|
|Growing focus on evaluating advertising e.g., how many people watched an advert, how long did they look at them||60%|
|Rapid increase in the number of digital screens available||56%|
|Price of LCD and LED display technology is falling||26%|
|Decline in readership of print media||25%|
Kevin Buchler, Vice President- UK Operations, Alfi said: “There is little doubt that the DOOH advertising market is enjoying strong growth. Society, as a whole, is becoming increasingly digitized, and the advertising sector is looking to make greater use of technology to deliver stronger more personalized and effective campaigns, and greater transparency around results. The unique qualities of DOOH advertising in meeting these trends helps to explain why the sector is enjoying such strong growth.”
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.
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