Expenditure on Digital Out of Home (DOOH) advertising in the U.S. was expected to represent about 36% of the total spent on out of home (OOH) advertising this year. According to new research from Alfi, 17% of senior advertising executives expect it to be over 50% as early as the end of 2021. Just over one in three (36%) anticipate DOOH advertising will reach this milestone by next year, and 25% expect it to happen in 2023.
Ad budgets are quickly shifting from traditional TV, newspaper and online to DOOH with 92% of advertising executives expecting the roll-out of digitized outdoor displays to speed up even more between now and 2026. When asked to choose three main areas of advertising from which this extra budget will be taken, 71% of advertising executives interviewed said television, followed by 58% who said online, and 46% who said newspapers.
Furthermore, 97% of senior advertising executives from around the world anticipate they will spend more on DOOH advertising this year than before the Covid-19 crisis, while 85% say spending will be at least 10% bigger, and 27% claim it will be at least 50% higher.
“The Covid-19 crisis dramatically accelerated the digitization of society. This is reflected throughout the advertising sector and the way campaigns are being created, which helps explain the huge growth in DOOH advertising at a much higher speed than previously expected,” said Paul Pereira, CEO, Alfi.
The huge roll-out of outdoor displays that are digitized is a key reason for this growth. Over the next five years, 56% of advertising executives interviewed expect the pace to increase dramatically, and a further 36% say the already fast-paced roll-out will speed up slightly.
Pereira added, “With our market leading technology, which helps advertisers to develop more sophisticated and targeted campaigns and our ability to provide detailed analysis on their effectiveness and reach, we are not only positioned to capitalize on this growth but also well-equipped to help brands scale as fast as the industry.”