Market Trends of North America OOH And DOOH Industry
The Digital OOH (LED Screens) Segment is Expected to Drive the Market
- Programmatic advertising's integration into the DOOH sector is streamlining the buying, placement, and optimization of media inventory, fueling a positive market outlook. Simultaneously, advertisers are increasingly harnessing data analytics and AI, empowering them to craft personalized, contextually relevant campaigns, further propelling the market's growth. Moreover, the growing capacity to dynamically adjust content in response to audience behavior, weather, or other triggers is bolstering the flexibility and relevance of advertising messages, underpinning the expansion of the market.
- The rising urbanization is driving the installation of digital billboards in key locations. This surge in digital displays is amplifying the visibility of DOOH advertisements, propelling the market's growth. Moreover, as urban centers see an increase in population density, footfall and vehicular traffic are increasing, expanding the reach of digital ads and further boosting the market's growth.
- Retailers harness DOOH for dynamic in-store displays and promotional campaigns to elevate the customer shopping experience. The adaptability of LED screens enables swift updates and precise messaging. Notably, the US retail sector leads in digital advertising expenditure.
- In 2023, the Outdoor Advertising Association of America (OAAA) reported a 40% surge in the number of digital billboards in the United States, reaching around 16.6 thousand. From early 2022 to mid-2023, DOOH advertising revenues consistently outpaced overall OOH revenues. Specifically, in Q2 2023, while total OOH spending saw a modest 2.2% uptick, investments in DOOH surged by almost 13%.
- In 2023, digital billboards constituted 31% of Lamar, one of the US's leading outdoor advertising firms, up from 22% in 2017. A survey from September highlighted that nearly half of DOOH campaigns were directly purchased, with less than 30% being procured programmatically.
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The United States is Expected to Hold a Major Share of the Market
- The US OOH and DOOH market is poised for robust growth, propelled by the rising adoption of digital screens and the incorporation of real-time data. Digital billboards, urban panels, and other signage are rapidly expanding, fueled by technological advancements and a growing appetite among advertisers for dynamic and flexible solutions.
- Moreover, heightened investments in public transit infrastructure and urban development are amplifying the prospects for DOOH advertising. Leading US cities are seamlessly weaving digital screens into their transit systems, public areas, and even street furniture, elevating the impact and reach of digital advertisements.
- For instance, according to USA Facts, a not-for-profit, nonpartisan civic initiative making government data easy for all Americans to access and understand, the federal government spent USD 44.8 billion on infrastructure in 2023 and transferred an additional USD 81.5 billion to states. Additionally, according to the CRS - Congressional Research Service, a public policy research institute of the US Congress, total federal funding authorized for public transit in the United States is expected to be USD 22.3 billion. Therefore, these heightened investments in public transit infrastructure are expected to produce ample opportunities and expected to drive the studied market in the region.
- In 2023, the United States saw a modest growth of less than 0.8% in its billboard count, as reported by the OAAA (Outdoor Advertising Association of America). The total number of billboards in the country reached approximately 354.5 thousand, marking a 3.9% decline from the 2017 count of nearly 369 thousand. This count encompasses various types, such as bulletins, posters, junior posters, and murals. While the overall billboard count remained relatively stagnant, digital billboards experienced a significant surge. Their numbers in the United States spiked by over 44% in 2023, totaling 16.6 thousand. Looking at the broader out-of-home (OOH) advertising landscape in the United States, which includes various formats, the segment's revenue hit a record high of USD 8.73 billion in 2023, surpassing pre-pandemic levels.
- The US market's significance is underscored by the presence of key global players like JCDecaux, Outfront Media, and Broadsign in the OOH and DOOH sectors. Through consistent innovation and expansion of their digital offerings, these firms are pivotal in driving the market's growth and solidifying its dominance in North America. With a steadfast commitment to leading in technology, infrastructure, and industry advancements, the United States is set to maintain its prominent position in the North American OOH and DOOH landscape.
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