The Shift in Ad Spending: A Digital Boom with One Major Exception

Every year, digital advertising claims a larger share of global ad spending. According to GroupM, ad spending will surpass $1 trillion this year, with digital ads making up 71.4% of the total — a significant jump from 53% just five years ago. Traditional formats like TV, radio, and newspapers continue to see declines as brands move their marketing efforts online.

However, one traditional format is bucking the trend: outdoor or out-of-home (OOH) advertising. Unlike other traditional platforms, OOH has maintained its market share and continues to grow. Industry leaders, such as Anna Bager, president and CEO of the Out of Home Advertising Association of America, predict this upward trajectory will persist, with OOH potentially claiming an even larger slice of the ad pie.

Why Brands Are Betting on OOH Advertising

Big names like McDonald’s, Apple, and Verizon, along with smaller brands, are investing heavily in OOH advertising. Companies like Outfront and Clear Channel, which manage outdoor advertising spaces, are reaping the benefits.

What makes OOH stand out in a world dominated by screens? The answer lies in its unique position. Outdoor ads aren’t competing for attention on a digital device; they exist in the physical world. They are often seen as less intrusive and more memorable because they engage audiences in public spaces where people are more alert and receptive.

The Human Appeal of Outdoor Ads

Rick Robinson, CEO of PJX Media, highlights the psychological advantage of OOH advertising:

“When we’re out there, we’re in a different headspace than when we’re at home: you’re elevated, you’re alert, all your senses are functioning.”

Public spaces inherently foster a sense of community, making outdoor ads feel more engaging and human. In contrast, digital ads often feel like interruptions in an already overstimulated environment.

Memorable Campaigns That Go Viral

Outdoor advertising has the potential to create moments that resonate deeply with audiences. For example, Charli XCX’s hand-painted neon green “brat” billboard in Brooklyn not only promoted her album but also became a social media sensation. Fans gathered at the mural, shared images online, and elevated the campaign’s impact.

David Shing, aka the Digital Prophet, believes OOH advertising offers something digital cannot:

“The ad becomes a participant in a sensation. You just can’t do that with a mobile ad.”

Digital Tools Enhance OOH Advertising

Though rooted in traditional formats, OOH has embraced digital innovations. Digital billboards, which now account for over a third of OOH sales, allow for dynamic and easily updated ads. Moreover, advancements in data analytics enable brands to measure the effectiveness of their outdoor campaigns, tracking foot traffic and conversions through mobile data.

Programmatic ad buying has also streamlined the process, allowing advertisers to target specific demographics and locations more efficiently. This capability has led many brands to recognize that OOH often outperforms TV, radio, and social media ads.

Spectacular Spaces and Moving Media

From iconic billboards like The Sphere in Las Vegas to smaller, localized campaigns on buses and delivery trucks, OOH offers diverse formats to reach audiences. Spectacular displays in high-traffic areas like Times Square and innovative moving media ads have opened up new opportunities for brands to stand out.

Chris Gadek, CEO of AdQuick, sums it up:

“OOH budgets are going to increase because customers can finally quantify its value.”

The Secret to Success: Creative, Contextual Ads

While technology has enhanced the reach and measurability of outdoor advertising, the essence of a successful OOH campaign remains the same. Ads must resonate with their audience, considering the location and context to make a lasting impression.

In today’s fragmented digital world, billboards and outdoor ads offer something rare: a shared, tangible experience. Whether they’re large-scale spectacles or targeted campaigns, OOH ads continue to prove their worth by making people stop, look, and share.

 

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