Thinking Outside: 2024 OOH Trends & Predictions
The last year has been a strong period for Out of Home (OOH), and as we look to 2024, the sector shows promise for continued growth and transformation. This dynamic industry has consistently evolved, given back and provided advertisers with exceptional creativity, data-driven strategies, and technology-driven outcomes.
It’s not surprising that consumers prefer in-person media channels for advertising over online platforms, with OOH and digital OOH (DOOH) ranking among the top five channels. No longer just a medium that drives primarily top-of-the-funnel outcomes, OOH is successfully driving bottom-end metrics too.
Overall, global OOH revenue is projected to reach US$38.41bn in 2023, with DOOH projected to reach US$17.54bn. By the end of 2024, global OOH is predicted to reach US$45bn. DOOH is set to see further significant growth and is predicted to grow 17% – driven by further media owner investment and increased investment in programmatic OOH (prOOH).
Curious about the future of OOH? In this blog, we’re diving deep into the upcoming trends and insights shaping the landscape for 2024:
- The Positive Impact of OOH
- Data-Driven Outcomes
- A Drive Towards Attention
- Creativity and Technology Unite
- The Brand Fame Comeback
- Standardisation of Programmatic OOH
- Retail Media & DOOH drives Path to Purchase
- Enhancing OOH with AI
The Positive Impact of OOH
OOH will continue to come together as a collective to showcase the sustainable and giving nature of the channel.
A recent study by PwC, commissioned by Outsmart, found that in the UK 46p in every £1 that is spent in OOH goes back into the community. The industry will focus on the positive impact of spending in OOH towards public infrastructure and communities whilst working to reduce OOH’s impact on the environment.
Another study (Outsmart, Legacy Media – out soon) has shown that when compared to TV, Press and Online, OOH has the strongest ESG credentials – ranking highest for Environment and Community.
Data-Driven Outcomes
The death of the cookie is stated to finally happen in 2024, meaning the era of highly targeted ads will end and advertisers will need to seek new ways to drive brand objectives.
OOH continues to impact across the whole funnel. In 2024, we will see a further drive towards performance and bottom-funnel metrics with brands using first and third-party data to create audience-first OOH campaigns.
We will see even more brands gravitate to utilising OOH for data-driven outcomes. Programmatic OOH impacts metrics across the entire brand funnel amongst optimised audiences. The strongest impacts are seen in bottom funnel metrics – preference and purchase.
A Drive Towards Attention
Understanding attention in advertising will become even more important. Attention in OOH is not a new metric and is imbedded within the methodology of Route. However, understanding how attention is given to inform effectiveness is what should be looked at; not only understanding where someone has looked and for how long, but correlating that with the impact – good or bad – to showcase the influence attention metrics can have on brand performance.
Kantar’s recent Media Reactions is a key example of how attention is coming to the forefront of conversations surrounding media effectiveness, citing a 90% correlation between channels that consumers claim capture their attention and those that they prefer.
51% of marketers claim their marketing budget decisions are influenced by attention, but Kantar’s report shows a clear divergence between what marketers think delivers consumer attention, versus what consumers think captures their attention. There is a 90% correlation between channels that consumers claim capture their attention, and those in which they prefer seeing advertising.
Creativity and Technology Unite
Over the past year, we have seen significant developments in creative DOOH, from AR and VR to 3D and AI. In 2024, brands will begin to realise the possibilities and potential of these developments even further to engage audiences, build brand share and deliver significant ROI.
Looking back at our 4th Space Research, as well as Ocean’s “Neuroscience: Redefining Human Engagement” and “Digital OOH: The Vital Ingredient,” creative digital OOH executions are proven to supercharge impact and deliver significant increases in attention, purchase consideration and memory encoding:
- Full motion DOOH copy is viewed 60% longer than static
- Special build OOH can increase purchase consideration +35% vs traditional
- Increase in consumer attention when using 3D DOOH +15% vs 2D
- Stronger memory encoding for live stream content 3x vs full motion.
The Brand Fame Comeback
OOH is well known for its ability to provide broad reach and deliver brand fame, in 2024 we’ll see advertisers revisit the channel’s number one strength. With a 98% UK population reach, OOH is, of course, powerful at driving reach. However, it is also incredibly powerful at driving brand fame (+23%) and brand trust (+8%).
The likes of PepsiCo, McDonald’s and HSBC lean into OOH’s strengths to build their brands and we’ll see more and more brands follow suit, using it to build awareness and impact.
Continued Growth of Programmatic OOH
2024 will see Programmatic OOH (PrOOH) technology continue to develop, and we’ll see a drive towards the standardisation of PrOOH alongside more OOH media owners trading through programmatic.
Programmatic OOH spend is predicted to grow over the next 18 months by a third on average (VIOOH State of the Nation). The move towards ever more digital and data-driven outcomes through programmatic will continue to increase, with consumers demanding more dynamic video content to connect OOH to their other digital media channels alongside a growing demand for greater online-to-offline opportunities.
Advertisers will continue to adopt PrOOH as part of their omnichannel digital strategies, alongside many new brands entering the market as barriers to entry are removed.
Retail Media & DOOH drives Path to Purchase
The role of OOH within the Retail Media ecosystem will continue to gain momentum and DOOH, will become a pivotal player in every shopper marketing strategy.
Leveraging first and third-party data, DOOH ensures your message reaches the right audience at precisely the right moment, from the outset of their journey to the final in-store purchase. It’s the missing link that seamlessly connects the worlds of home and store, providing brands with a unique opportunity to engage with consumers on an entirely new level.
The integration of DOOH with retail media networks will enable marketers to supercharge their shopper marketing – with advanced measurement and attribution solutions linking OOH ad exposure to critical business outcomes.
Enhancing OOH with AI
As the drive towards AI integration within businesses continues, OOH agencies and media owners will continue to integrate AI to improve efficiency, creativity and copy to create even more effective OOH campaigns.
Watch this space_
