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Digital outdoor advertising driving global outdoor ad market, study says

The global market for outdoor advertising is being driven by the growing replacement of traditional static billboards and posters with digital signage systems, according to a new research report from Global Industry Analysts Inc.

February 12, 2015

The global market for outdoor advertising is being driven by the growing replacement of traditional static billboards and posters with digital signage systems, according to a new research report titled "Outdoor Advertising: A Global Strategic Business Report" announced by Global Industry Analysts Inc.

The global market for outdoor advertising is projected to reach US$50.7 billion by 2020, driven by the growing popularity of digital platforms for out-of-home advertising, according to GIA.

Among the report's key findings:

• Oversized digital billboards are gaining in prominence, given their ability to attract audience attention.
• Commercial-grade, large-screen digital displays for non-consumer applications are witnessing growth encouraged by falling prices.
• Video-wall systems featuring wall-sized display screens provide greater visual clarity and detail. Large wall-sized displays help advertisers fully exploit the cognitive benefits of large displays. Larger displays, in this regard, fill a greater percentage of a viewer's visual field thus influencing reaction to displayed information. Physical size tends to influence sensory and judgmental processes in humans by positively influencing arousal, attention and memory. Indoor venues for large screen displays include auditoriums, convention centers, hospitals, bars, clubs and hospitality centers.
• Urbanization represents a key trend spurring growth in the out-of-home advertising market. More than half of the world's population now resides in cities and urban locations. That figure is expected to explode further with urban population representing around two-thirds of the global population by the year 2050.
• Apart from urbanization, the world's population is also becoming increasingly mobile, with people spending a greater proportion of their time outside their homes, such as at airports, railway stations, streets, and malls. Over the years, the average time for commuting between home and workplace has considerably increased. This means that more and more people are spending time traveling. This combination of urbanization and mobility trends will provide immense opportunities for the growth of outdoor advertising. Especially poised to benefit under this scenario is transit media.

Major players covered in the report include Adams Outdoor Advertising, Adspace Networks Inc., Bell Media, Burkhart Advertising Inc., Captivate Network, Clear Channel Outdoor Inc., Clear Media Limited, CEMUSA, Daktronics Inc., EPAMEDIA, Fairway Outdoor Advertising, Focus Media Holding Limited, JCDecaux SA, Lamar Advertising Company, Outfront Media Inc., Pattison Outdoor Advertising, Primedia Outdoor and Ströer Media SE, among others.

Find more on the report here.