Exciting DOOH Opportunity in Asia
Published: August 31, 2022
If you are an advertiser or media owner and haven't heard of digital out-of-home (DOOH) by now, you must be living under a rock. In the past few years, this medium has taken American outdoor ad spaces by storm, revolutionizing how we think about traditional advertising and urban areas - contributing factors include economic development and population density. Yet, with DOOH advertising benefits and industries expanding their knowledge, there is and will continue to be rapid acceleration and developments in the programmatic OOH global sphere, including in non-developed nations. According to the Statista Research Department, DOOH advertising spending is projected to reach over 16 billion worldwide by the end of 2022.
A region that is becoming the most significant growth opportunity for digital out-of-home advertising is none other than the Asia-Pacific. The largest global middle class, rapid infrastructure growth, accelerating digitization, and sprawling metropolises are prominent benefactors of the rampant allocation of digital screens. The Drum published an article finding that DOOH in APAC spending is expected to grow over 18% annually until 2026. Countries like Thailand, Malaysia, and the Philippines are automating out-of-home spaces relatively fast compared to countries like Japan and India.
The founder of Moving Walls, Srikanth Ramachandran, identifies the reasoning behind this by saying, "In Southeast Asia, we have seen markets like Malaysia, Indonesia and Thailand digitize OOH very fast, and the number one reason is because of fragmentation, with a lot of new players emerging in these markets which are purely digital."
Fragmentation can also backfire because many more players must mobilize from static to digital, as is the case for Japan. Previously, advertisers had to jump through hoops to find the right OOH inventory for their campaign. With DOOH, marketers can enormously benefit by planning and executing a well-thought-out campaign in minutes. Yet, due to this high fragmentation, regulatory restrictions, and high costs, DOOH is still lacking in the third world's largest economy. Leading vendors control only 20% of the market, resulting in low market penetration.
India is the fastest growing of the large emerging markets in advertising spend, forecasted to grow 15.2% in 2023 and 15.7% in 2024, the highest for any market in the world. But similar to Japan, there are obstacles to achieving DOOH growth, i.e., fragmented media ownership, lack of developed infrastructure, and stringent government rules surrounding roadside DOOH displays. However, leading advertisers and industry analysts are confident that DOOH will emerge as the next global giant. Although DOOH only accounts for 4% of the overall OOH market, Indian OOH marketers have witnessed vast digitization and an influx of programmatic players over the last couple of years. Once the Central government creates progressive rules and regulations, there will be abundant growth in the large format DOOH space. “Over the next five years, India has the potential to be amongst the largest DOOH markets globally,” Shoumitro Goswami, Co-Founder of Vyoma, said.
As DOOH is becoming an exciting industry in these emerging Asian markets, China is a true testament to the power of DOOH. The country's total OOH advertising market is now worth 9 billion dollars, and DOOH constitutes a third of this value. It's estimated that by 2027, DOOH will be worth 6.1 billion dollars, with programmatic being the primary growth factor. But, China is far from having a seamless DOOH integration. The Golden Shield Project, or The Great Firewall, is the enforcer of the internet domestically, posing a unique challenge to brands and agencies trying to access the Chinese market. Marketers have found 'loopholes' around this firewall by working closely with domestic partners who have built compliant, certified technologies behind the shield. Despite this challenge, there are many opportunities to create impactful DOOH campaigns that reach Chinese consumers across multiple touchpoints that measure foot traffic, website visitation, and mobile app KPI lift.
Digital out-of-home advertising is experiencing major growth in the APAC market driven by an accelerating economy, growing populations, and the adoption of programmatic and digital technologies. The ability of programmatic OOH to reach consumers and free up advertising space will only continue to be a driving force for this channel to soar. The possibilities are in sight, with industry experts witnessing the fantastic opportunities for the future of DOOH in the APAC region!