Expert OOH Predictions for 2022
Published: December 30, 2021
Out-of-home (OOH) advertising witnessed a significant resurgence this year, primarily in digital, even after the pandemic setback. With higher-than-projected ad spending in 2021 and the slow return to normal, experts, such as Goldman Sachs analysts, predict OOH ad sales will see an upward trajectory the following year. We compiled a list of industry and thought leaders' insights into what 2022 and the future will hold for outdoor advertising.
Before the year ends, Magna forecasts OOH will increase by 16%, making it the second-fastest-growing channel behind digital media. And will continue to expand in 2022, reaching the $300 billion mark for the first time as the economy becomes more robust and people return outdoors.
And, according to the PQ report, pDOOH is projected to accelerate in 2022 and rise at an 8.9 percent CAGR to $4.43 billion in 2025 for a 37.1% share of total U.S. OOH ad revenue. President and CEO of DPAA, Barry Frey, stated that OOH's growth is fueled by digitization. "Specifically, digital platforms, data, targeting initiatives, video screens, digital systems, and processes have enabled us to come strongly out of this pandemic situation," Frey said, who added that programmatic selling of DOOH inventory has also driven up revenue."
Also, demand-side platforms (DSPs), like Adomni, are anticipated to increase with a growth rate of over 30% between the forecast period 2019-2026. Programmatic capabilities are becoming the dominant trend in digital marketing and will become even more valuable as advertisers and agencies become proficient in the buying process and DSPs.
According to Gavin Wilson, Chief Revenue Officer of VIOOH, he claims DSPs in 2022 are to show unexpected growth, "improving their technology and discoverability, to give all parties easier ways to trade." He further emphasizes, "DSPs will spread their global wings, offering programmatic outdoor in even more geos as demand increases. Those omnichannel DSPs will be accelerating their push of outdoor as other channels lessen in interest and value, with the pure outdoor channel DSPs driving their technology stack to remain channel experts." Wilson predicts that the programmatic will be the leading channel, innovating the entirety of outdoor advertising.
The rise of programmatic technology will continue to expand in 2022, earning the trust of more advertisers and brands as DSPs advance their understanding of audiences and measurement. According to Nigel Clarkson, the Global CRO of Hivestack, "There will be a continued evolution of the DOOH eco-system to adopt more "online" products and services, such as header bidding, supply-path optimization, and the rise of ad servers. Screens will all be capable of carrying hundreds of different advertisers, not just six ads scrolling in a constant loop.”
With the CDC supplying boosters for all Americans and the COVID vaccine being distributed to children, the pandemic fears in 2020 have dwindled, which is encouraging for the outdoor advertising market. According to the Out of Home Advertising Association of America (OAAA) and Harris Poll Consumer Insight 2022 report, the outlook for travel is strong, with over half of those traveling in H1 of 2022, doubling from the previous winter. Their market research recommends investing in outdoor advertising as people return outdoors while the fears of the pandemic continue to recede.
More so, in Flywire's second annual consumer travel report, seven out of ten frequent travelers are likely to spend more on travel in 2022 than they have in the past five years. Therefore, more outdoor advertisements are integral to capturing audiences' attention and building brand recognition while consumers travel and spend more time outdoors.
There is so much to look forward to in 2022 for outdoor advertising. We are expecting to not only return to pre-pandemic levels but exceed. Digital out-of-home offers a variety of ways for advertisers to confidently reach consumers due to its valuable capacity to ensure relevance, optimize campaign performance, and achieve business goals. So what are you waiting for? If you're ready to plan and launch your DOOH campaign, our team of DOOH experts is prepared to help at no charge to you! Contact us at firstname.lastname@example.org