Global billboard and outdoor advertising market to reach $66.63 billion in 2021, report

Global billboard and outdoor advertising market to reach $66.63 billion in 2021, report

10-08-2021 13:15:00 | Door: Bob Koigi | Hits: 1295 | Tags:

The global billboard & outdoor advertising market is expected to grow from $60.23 billion in 2020 to $66.63 billion in 2021 at a compound annual growth rate (CAGR) of 10.6% according to a new report by Research and Markets.

The growth is mainly due to the companies rearranging their operations and recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The market is expected to reach $90.06 billion in 2025 at a CAGR of 7.8%.

In December 2018, Lamar Advertising, an outdoor advertising company in the US and Canada, acquired Fairway Outdoor Advertisings billboard operations for $419 million in a few US states including North Carolina, South Carolina, Georgia and Wisconsin.

The acquisition will add 8,500 billboards along with 135 digital displays in Lamar's account. This deal was expected to add $70 million in total revenue to Lamar Advertising in 2019. Moreover, the acquisition is expected to help Lamar set its foot strong in the market with 5% anticipated sales growth. Fairway Outdoor Advertising is an American outdoor advertising firm engaged in providing billboards, digital displays, and posters.

The increase in digital out of home (DOOH) advertising is expected to contribute to the growth of the billboard and outdoor advertising market. Out of home (OOH) advertising refers to advertising outside of the home and includes billboards, bus shelters, wallscapes, and posters.

DOOH is an extension of the OOH and includes outdoor signage, digital billboards and television screens. In contrast to traditional billboards that show static images all the time, digital boards display more live images and can run multiple advertisements and, hence, attract more consumers. DOOH witnessed a 10% rise in OOH advertising worldwide, which was close to $16.75 billion in the year 2019.

According to Vistar Media, global digital advertisements have grown from 160,000 units to 300,000 units in less than five years. DOOH in recent times have seen lucrative growth and is expected to grow more in the coming years because of its engaging and interactive nature.

Several regulatory standards employed by governments across the globe for advertising at particular locations or spaces are a key factor hampering the growth of the global billboard and outdoor advertising market. In the UK, advertisement of alcohol, e-cigarettes, sweets and fast food is prohibited within 200 meters of a school. It is also not allowed to do any political advertising on bus shelters.

The Committee of Advertising Practice (CAP) looks after non-broadcast advertising in the UK and has extensive regulations covering areas such as environmental claims, gambling and lotteries, alcohol sales and selling of e-cigarettes to mention a few.

Many states of the US are adopting lighting standards to prevent glare from digital billboards to ensure it does not affect the vision of people passing by it. Puerto Rico and the other 12 states have made it mandatory for digital billboards to adjust the brightness to the surrounding environment and light.

The digital billboards come up with light sensors that adjust brightness at different times of the day. These regulatory standards are for the betterment of society but are proving to be hindrances for the advertising business.

www.researchandmarkets.com

 


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