For all stakeholders in the advertising world, the analytical department of "Megapolis" company has gathered the latest data on OOH/DOOH trends in Ukraine and globally. The analysis examines how outdoor advertising is evolving today and what changes advertisers can expect in the near future.
The global advertising market reacts more sharply to changes in the economy, demonstrating both stronger declines and stronger growth. By the end of 2021, the advertising market will not yet reach the levels of 2019 (2021 = 96.5% of 2019), but in 2022, it is expected to exceed the 2019 figures (2022 = 103.1% of 2019). The dynamics of changes in global GDP and the advertising market (% change from the previous year).
A logical consequence is the downturn (almost a quarter) of the outdoor advertising market in 2020. Predictably, OOH will surpass pre-crisis levels in 2023. The crisis deepened transformation processes in this segment of the advertising market, stimulating the shift towards "digitalization." DOOH will develop both from the "demand" side (clients' use of this advertising channel) and from the "supply" side (increase in inventory and opportunities for "algorithmic sales" – programmatic).
Similar to the global advertising market, advertising in Ukraine also reacts more sharply to changes in the economy (comparing nominal GDP and advertising market volumes). The advertising market in Ukraine demonstrates both stronger declines and stronger growth concerning nominal GDP. Taking inflation into account (even official data from the State Statistics Service at 2.7% in 2020 and 7.7% in 2021), it can be concluded that, unlike the overall economy, the advertising market will return to pre-crisis levels in 2021. However, if annual media inflation is estimated at 15%, the process of returning to pre-crisis levels will be significantly more prolonged.
After a 25% decline in 2020, it is expected that outdoor advertising will grow by 15% in 2021 (further growth will be smoother). Moreover, DOOH demonstrates explosive growth rates even in the conditions of a severe "quarantine crisis" (doubling income in 2021 compared to 2019) and continues to confidently capture its share of the market. The growth rate of DOOH advertising will somewhat decrease but will still remain at a fairly high level (due to the increase in inventory and the rise in advertising placement prices on this type of media).
✔ Post-crisis growth of OOH after a decline shows the most signs of recovery in 2021, with economic growth and "Covid audience fatigue" being the main factors. In addition, internet advertising is becoming more expensive, somehow "displacing advertisers from home."
✔ Digitalization Video displays play an increasingly significant role in the outdoor advertising market.
✔ Drive for online media consumption (transitional period) One of the main tasks of "out-of-home" communication will be to strengthen online consumption (even without the integration of two advertising channels) when the audience encounters a new but already familiar object in the online communication noise, "capturing" it from the general online communication buzz.
Simple drive (without integration) of online consumption is a trend in the transitional period. Mobile integration of OOH will continue to increase. The use of online platforms – together with outdoor advertising – can enhance campaign messaging among the target audience. Offline presence of online brands. Outdoor advertising will be used in conjunction with social media and television in a process known as multi-channel integration. This is crucial to ensure that the message delivered across all channels aligns with the brand image.
✔ Strengthening the division into "premium" and "mass" carriers The narrative of dividing carriers into premium and mass (standardized) will receive a new impetus, allowing for the future separation of sales mechanisms (down to the sale of mass carriers by OTS and premium carriers "per period").
✔ Standardization of "new formats" Efforts to improve the efficiency of video carriers in outdoor advertising will move towards standardization of (mass) video carriers.
✔ Automation of outdoor advertising purchases Transition to "algorithmic sales" mechanisms. Programmatic. Auction systems.
✔ Static carriers are still effective in solving their tasks. A kind of "immutable impact on areas." OOH static carriers offer clients constant, round-the-clock exposure that cannot be turned off, thrown away, or ignored. Consequently, this makes them highly effective in spreading brand awareness among a wide audience.
✔ Hyper-localization The most valuable asset of outdoor advertising is to be in the right place. Hyper-local outdoor advertising can reach a niche audience with a high frequency in a specific "power point." Look at the image – you have only two options (100 m to the right or 250 m to the left).
✔ Analytics and Targeting: Media passport, along with the "advertising campaign dashboard," will require increasingly more analytical information, allowing for the assessment of both the socio-demographic and geographic profile of the audience (and later the socio-cultural one). This will enhance both the targeting process and the evaluation of advertising manifestations.
✔ Interactivity: Digitization will enable the incorporation of interactive elements into advertising campaigns. Changing the storyline based on weather, time of day, or even directly involving the audience in the advertising layout (communication), from online video to audience-content uploading to the advertising layout.
✔ Adaptive Storytelling: Digitization will strengthen the concept of storytelling in outdoor advertising, especially considering the adaptation of the story to specific locations.
✔ Goal – "Evolutionary Leap": DOOH will go beyond being a "simple OOH variety." Its goal is to evolve into an external online media, leading to entirely different solutions and opportunities for all industry participants. In essence, we will witness the synergy of online and outdoor advertising.
Considering all the current trends in OOH/DOOH development, our team:
- Continuously works on expanding the media facades network.
- Conducts effective digital advertising campaigns for our clients.
- Utilizes non-standard formats of outdoor advertising.
- Engages top locations in power points of the city, including on major roads connecting large residential areas with the city center.
Among the clients who have received the most effective advertising placements: COOKER, COLLISTAR, BROCARD, ProCredit Bank, L’Oreal.