Asia-Pacific is part of OOH advertising’s global ‘bounce’, says body
By our News Team | 2022
Static OOH ads still account for around 60% of global revenues and are not in terminal decline, despite improvements in digital technology.
The Asia-Pacific region (known as APAC), which now accounts for a third of the world’s gross domestic product, is set to share in the out-of-home industry’s strong worldwide bounce-back after the pandemic.
This is according to the World Out of Home Organization’s President, Tom Goddard, who recently gave feedback to over 200 delegates at the organisation’s first in-person Regional Forum held in Kuala Lumpur, Malaysia.
World Out of Home Organization President, Tom Goddard. Photo credit: WOO
Goddard said the organisation’s Global Data Index shows that OOH in the region is very much in line with global forecasts.
But he warned that, while a range of positive dynamics is driving the medium forward, the industry needs to increase collaboration at all levels and shift from a focus on local competition to sector-level cooperation. This was necessary to help combat the threat of other media.
Figures from the World Out of Home Organization (known as WOO) indicate that the global OOH market hit a record US$37-billion revenue in 2019 and was on a fast growth trajectory, he said.
Digital makes up 45% of OOH in the region
Global Digital Out-of-Home (DOOH) is leading the growth charge, projected to be close to 50% of all OOH revenue by 2026. Across APAC, it already makes up over 45% of revenue.
“Static (non-digital OOH) still accounts for around 60% of global revenues, which some observers assume is in terminal decline. Not so. Static is forecast to maintain its revenues at flat, which I think is a great result when you think about inventory moving over to digital,” Goddard said.
He then outlined a range of positive dynamics which he believes will increase the growth of OOH.
“Firstly, more and more markets are investing in credible audience metrics, which builds trust, increases confidence, enables intra-media comparison and facilitates a common trading language. Automation is also a major growth stimulus now. When you invest in automation, you also create the ability to trade programmatically and to overlay data,” said Goddard.
“And the creatives have fallen back in love with OOH, having been dazzled and distracted for a while by online, especially with the new darling of the creative community, 3D Anamorphic [digital billboards). Every creative on the planet wants to develop one of these,” he added.