IPG Mediabrand’s Magna and Rapport have partnered on a report that tracks trends for OOH advertising in 70 countries for the top 20 markets, that shows the Asia-Pacific ranked highest with almost $13 billion in sales in 2018.
This puts it ahead of Europe, the Middle East and Africa (EMEA) at close to $9bn and North America at close to $8 billion. Asia Pacific also ranked with the highest OOH share with 7.8% on average vs 5.6% globally.
“Growth in OOH spends is being largely driven by growth in digital OOH in most markets, and this will continue to be the big growth driver in the coming years,” said Gurpreet Singh, Managing Director Magna APAC.
“As data & technology play an increasing role in OOH media, trading will move from buying ‘space & time’ to ‘impressions’ and ultimately we can expect it to move from buying ‘opportunity to see’ to ‘actual views and engagements’, bringing more accountability to this media. Interesting times ahead for OOH.”
- APAC is now the largest OOH region with almost $13 billion in sales in 2018, ahead of EMEA (close to $9bn) and North America (close to $8 billion). APAC is also the region with the highest OOH share (7.8% on average vs 5.6% globally).
- The top three OOH markets concentrate 52% of the world’s total OOH ad sales ($31 billion). The largest OOH market, the US, was worth approx. $7.4bn in 2018, i.e. almost a quarter of global OOH ad revenues. The second largest market is Japan ($4.6bn, 15%) followed by China ($4.0bn, 13%).
- While other traditional media sectors are struggling to reach consumers in this digital age, OOH advertising is leveraging technology to innovate, remain relevant and attract new advertisers. As a result, OOH is the only traditional format that has experienced consistent growth in global advertising sales in the last ten years.
- Global OOH ad sales are forecast to grow by +2.8% in the next five years (2019-2023) to reach $38 billion by 2023, while traditional media ad sales will be flat overall over the period.
“There has never been a more exciting time in the OOH (out-of-home) industry,” said Michael Cooper, Global CEO, Rapport. “The industry has exploited all the benefits of evolving digital technologies but retains a unique geographical footprint in a way that no other medium can. Spotify, Amazon, Apple, Netflix, Hulu and all the tech companies you are excited about, have dramatically increased their spending in OOH advertising, across almost every world market in 2018, with very good reason”.
The report said that OOH is the only traditional media to experience consistent advertising revenue growth and that retail is the largest contributor to OOH advertising revenues in most markets.
Findings by Market
- The Australian OOH market is one of the most developed, with $28 of OOH ad spend per year per capita – the third highest ratio globally – in 2018.
- DOOH sales account for half of total OOH sales. Only two markets – Australia and the UK – have reached that milestone.
- The OOH landscape is very concentrated following the consolidation of 2018, with the top three media owners now controlling 80% of total OOH sales.
- Revenue growth will remain robust in 2019 (+10%), spurred on by strong digital OOH growth.
- The Chinese OOH market is the third largest in the world, with CNY 27bn ($4bn) in ad sales in 2018.
- Much of the Chinese population has urbanized, increasing the value of OOH advertising; 59% of the population lives in urban areas, more than double what it was 30 years ago.
- OOH growth will remain robust in 2019 (+9%), spurred on by strong digital OOH increases.
- The Indian OOH market is extremely fragmented and that is one cause of low DOOH penetration.
- Roadside billboard are the number on segment but transit and street furniture are developing faster.
- OOH NAR will grow by +12% in 2019 thanks to strong economic growth, general elections, and the cricket world cup.
- OOH NAR is forecast to grow by +7.5% per year in the next four years (2020-2023) driven by the opening of many new metro lines in major cities, starting in 2019.
- The Japan OOH market is the second largest in the world, with 521 billion yens (approx. $4.6bn) in 2018.
- The market share of OOH in Japan is double the world average (12% vs 6%) due to high population density and the relatively high costs of OOH media.
- The share of DOOH is below average (11% vs 18%) because of fragmentation (top 3 vendors control only 20%).
- OOH ad sales will be flat in 2019, and will grow by 3% in 2020 thanks to the Tokyo Olympics.
- The Malaysian OOH market is worth $130 million.
- This represents a high market share (15%) due to heavy road traffic and OOH expansion to new sites.
- OOH revenues grew by +10% in 2018, thanks to economic growth and the general elections.
- OOH controls one of the highest market share in the world: 15%.
- Place-Based is the number one segment.
- The industry is loosely regulated and highly fragmented with leading vendor United Neon controlling no more than 20%.
- MAGNA predicts double-digit growth for OOH NAR in the next five years (22% for DOOH).
- The OOH market share (13%) is twice the global average of 6%. Because Singapore is a City State with a very high GDP per capita, OOH is attractive and competitive.
- OOH ad spend per capita is thus the second highest globally ($35).
- OOH spending will increase by 4% in 2019, a modest increasing following several years of weakness related to economic and trade-related instability.
- Media owners’ net advertising sales (NAR) will reach THB 15.1 billion in 2019 ($446mm), excluding cinema. This represents a market share approaching 20%, significantly ahead of the global average of 6%.
- OOH is driven by high urbanization and traffic in Bangkok, where OOH is frequently a complement to TV for driving brand recall and brand affinity.
- OOH ad sales will increase by +7% in 2019, following an even-higher growth in 2017 – +8%).