The out-of-home industry saw double digit revenue growth in 2021. What’s in store for the industry in 2022?
We’re nearing the end of 2021, and despite the coronavirus pandemic still going on, the OOH industry saw tremendous growth this past year. Steve Nicklin, VP of Marketing at OAAA said “MAGNA forecasts OOH will rise 16 percent for 2021, making it the second fastest growing channel behind digital media (+36%), which will likely end 2021 with a 70 percent share of total spend.”
With OOH still on the rise, we can expect to see continued growth throughout 2022. Let’s dive into the OOH outlook for the upcoming year.
OOH Revenue Increasing
MAGNA found that US ad sales in general will grow 12% and reach the $300 billion mark for the first time. Beyond that, OOH revenue will be increasing throughout 2022 as well. In fact, MAGNA projects OOH revenue will grow by 11%, which would mean another year of double-digit growth for the industry.
So how much will businesses be spending on OOH in 2022? Borrell Associates surveyed SMB’s about what’s to come in 2022, and this is what they found:
- 90% of SMBs plan to spend the same or more as 2021
- Almost 40% plan to spend more in 2022
- Only 10% plan to spend less in 2022
Source: Borrell Associates, MAGNA, OnDevice
We know that OOH is effective, but why the sudden push to spend more on OOH in 2022? Let’s take a look at consumer behavior and why OOH advertising is more important than ever.
Digital Device Burnout and Noticing OOH More
The pandemic and need to stay inside has caused digital device burnout. Consumers are eager to get off their devices and get outside! A 2021 study by OAAA and The Harris Poll found that 63% of individuals often tune out digital device ads, with 45% of individuals trying to reduce time on their digital devices. With OOH advertising, you can reach consumers in between the times they are on their devices.
Consumers are also planning to commute and travel in 2022! A recent study by OAAA and The Harris Poll found that in the first half of 2022, 78% of individuals will be commuting at least part of the time to work, a 7% increase compared to Winter 2021. In fact, this winter, 43% of Americans’ local travel patterns will be similar to or greater than pre-COVID. As far as travel, 72% of Americans plan to travel in the first half of 2022.
The study also found that as people strive to live a normal life post-pandemic, they are noticing and engaging with OOH more often:
- 57% of consumers have recently engaged with an OOH ad in some way
- 43% visited the advertiser’s website
- 39% searched for more information about the advertiser or their products
- 39% made a physical purchase
- Engagement is especially high in large urban areas, in which (77%) of consumers have engaged with an OOH ad.
As far as what types of ads drive engagement, it was found that “Millennials, Gen Zers, and Urbanites are most likely to stop and read OOH that featured their favorite brand or product, was something creative or artistic aligned with their values, highlighted local businesses, or featured their favorite artist or celebrity.”
In 2022, brands should make an effort to post their OOH ads on social media, or encourage followers to find and engage with their OOH ads. The study found that 67% of both Gen Z and Millennials recall seeing OOH ads reposted on social media, with 55% being likely to visit the advertisers online and 48% going to their physical stores.
DOOH On the Rise
In 2022, the industry can expect to see more moves towards DOOH and programmatic activations. Neuroscience’s 2021 study that found digital signage delivers 63% more impact than traditional signage!
Programmatic activations have already helped boost DOOH, and will continue to do so in the upcoming year. Toby Lett, product director at Xaxis, said “This greater investment is being fuelled by marketers’ appetite for flexible, streamlined media buying and precise targeting, leading to greater adoption of programmatic DOOH (pDOOH)… By allowing media owners to monetise hourly ad slots, programmatic capabilities will make pDOOH more accessible to brands regardless of budget size, boosting growth even further.”
Many brands have started implementing programmatic DOOH into their marketing campaigns and seen great success. The great part about programmatic is you don’t have to plan for your campaigns months in advance, making it easy for brands to quickly activate and implement OOH into their multi-channel campaigns.
Another big player in the rise of DOOH is the blocking of third-party cookies. Once Google blocks third-party cookies, online ads will be at a disadvantage. Charles Manning, Founder and CEO of Kochava said “DOOH is actually in a favorable position given these recent developments. Brands are now having to take a broader look at real world context for their ads and here is where DOOH delivers.”
As you create your media plans for 2022, be sure to include DOOH in your plan! By advertising with Blip, you can run affordable digital billboard campaigns anytime, anywhere, on any budget! We’re dedicated to helping you bring DOOH into your marketing mix to bolster your overall performance. If you’re looking for more digital billboard advertising options, our Subscription plans might be the solution for you! You can learn more about them here.