Out of Home Advertising Sees a 2.1% Growth Surge

This rise highlights the growing recognition of OOH’s value in the digital age, where digital billboards, in particular, have come to represent a significant portion of this investment, accounting for 33% of the total OOH spend and experiencing a 10% growth on their own.

The Digital Billboard Phenomenon

Digital billboards are not just modern backdrops for the urban landscape but are pivotal in transforming outdoor advertising. With their ability to dynamically change ads and display multiple messages throughout the day, digital billboards offer a flexibility that traditional billboards can’t match. This capability increases their appeal to advertisers who wish to run time-sensitive campaigns and reduces costs associated with producing and mounting physical advertisements.

According to the OAAA, in 2023 alone, digital out-of-home (DOOH) formats have outpaced other segments, underscoring the shift towards more agile and programmable media vehicles. This transition is largely driven by digital platforms’ enhanced targeting and measurement capabilities, which align closely with today’s data-centric strategies that dominate digital marketing.

Remarkably, 65% of the top 100 OOH advertisers raised their investment levels in 2023…
– OAAA

Major Advertisers Increase Their OOH Investments

Remarkably, 65% of the top 100 OOH advertisers raised their investment levels in 2023 compared to the previous year. More impressively, 20% of these advertisers more than doubled their spend. Leading the pack with the highest increases in OOH expenditure were:

Asia Forging Supply and Avis are two companies that have dramatically increased their use of outdoor media to reach wider audiences.
Johnson & Johnson, Coors, and Coca-Cola Southwest have also substantially upped their stakes in OOH, leveraging traditional and digital formats to drive consumer engagement.
Retail giants like Target and Walmart, alongside luxury brands such as Louis Vuitton and Richemont Jewelers, show diverse sectors’ reliance on OOH advertising.
Diageo, Aetna, Expedia, and Hilton highlight the spread across different industries, including healthcare, travel, and hospitality, all of which are turning to OOH to boost visibility and consumer recall.
Entertainment and media firms like Warner Bros, tech companies like Verizon and Nordstrom, and even niche players like Sweet James Attorneys and Yaamava Resort & Casino At San Manuel are investing more in OOH to cut through the noise of online advertising.

Technology and Direct-to-Consumer Brands Embrace OOH

The influence of technology on OOH advertising extends beyond just digital billboards. One in five of the top 100 OOH spenders are now technology or direct-to-consumer brands, with significant investments from:

Airbnb, Amazon, Apple, and AT&T are at the forefront, utilizing OOH for broad-based brand-building and specific, targeted campaigns.
Comcast, DoorDash, Expedia, and FanDuel highlight the growing trend of service-based companies using OOH to influence consumer decisions at multiple points in the consumer journey.
Google, Hulu, Live Nation, and Max demonstrate the entertainment and media sectors’ strategy of using OOH to capture audience attention in large public spaces.
Netflix, Nintendo, Peacock TV, Samsung, T-Mobile, Uber, Verizon, and Vrbo represent a broad spectrum of tech companies that rely on OOH to complement their online marketing efforts, thereby creating integrated cross-media campaigns that leverage the strengths of each medium.

Final thoughts

The 2.1% growth in OOH advertising spending in 2023 is not just a statistic; it clearly indicates the industry’s robust health and crucial role in the current marketing ecosystem. As digital billboards continue to grow in numbers and sophistication, and as more brands across diverse industries double down on their OOH investments, the future of outdoor advertising looks brighter than ever.

OOH’s ability to make a visual impact and its evolving technological integration make it an indispensable tool for advertisers aiming to make a significant impression on consumers. Whistler Billboard Buzz is at the forefront of capturing these industry shifts, offering comprehensive insights and guidance on maximizing the effectiveness of OOH campaigns. Whether you’re a seasoned advertiser or new to the field, understanding these trends can help you leverage OOH’s full potential to achieve your marketing objectives.

This resurgence is a dynamic narrative of adaptation and precision, where traditional and digital strategies converge to create compelling, impactful advertising narratives that resonate deeply with consumers on the move.