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DOOH regains its footing after a few turbulent years

Although OOH is still primarily a traditional medium, outdoor advertising’s future is digital. US DOOH ad spend will grow by double digits annually through the end of our forecast period in 2027. In the near term, DOOH is overcoming its pandemic slump.

  • DOOH’s 31.4% share of total OOH ad dollars in 2023 is on par with its pre-pandemic heights. More ad dollars will be spent on DOOH in 2023 than 2019. But when factoring inflation, DOOH is still down from pre-pandemic levels, which is emblematic of OOH’s reduced share of total media budgets.
  • Traditional OOH ad spend will increase about 3% in 2023 and 2024. About two-thirds of OOH ad dollars will go toward traditional placements for the foreseeable future. Outside of metro areas, the audience isn’t big enough to justify the investment needed to create digital signage, which explains the continued relevance of static billboards.

In-store retail media will account for a growing share of DOOH.

  • Aside from driving sales, in-store retail media can influence brand awareness and consideration. About three-fourths of advertisers are running in-store DOOH campaigns or are considering them, according to a November 2022 poll by the Interactive Advertising Bureau (IAB). Examples of in-store retail media sellers include GSTV, Cooler Screens, and Grocery TV.
  • Digitization is transforming retailers’ ability to provide advertising at store shelves, end caps, cooler doors, and checkout aisles. In-store retail media will account for one-tenth of US DOOH ad spending in 2024. This reflects the expanding ad inventory available in physical stores.