Digital out-of-home advertising (DOOH) which includes the use of mobile location data to target customers whilst they are on the go, is predicted to grow 10.1% every year between 2018 and 2021 according to a report by WARC.
Digital is now responsible for 37.3% of out-of-home ad spend or $14.6 billion – a mild increase from 34.8% in 2017. At the same time, DOOH expenditure is driven by a premium CPM compared to other formats.
Furthermore, major ad space providers such as JC Decaux and Clear Channel have committed to providing more digital spaces to advertise.
The report also revealed that mobile and OOH ads are tightly linked. As such, mobile click-through rates were up 15% for OOH with 46% of US consumers now using search engines after seeing an OOH ad.
“The combined power of digital out of home and mobile location data can be used to add greater targeting capabilities to a broadcast medium, serving programmatically-traded creative by the hour to the right people, in the right place, at the right time,” said James McDonald, data editor at WARC. “This is an enticing prospect for advertisers looking to leverage digital’s strengths without the risks of ad blocking, fraud, and negative adjacency.”
WARC further predicts that 50.1% of UK OOH ad spend was digital in 2018.