Traditional Out-of-Home Advertising - Ethiopia

Ethiopia's ad spending in the Traditional Out-of-Home Advertising market is forecasted to reach US$25.97m in 2024.
The sector is anticipated to display an annual growth rate (CAGR 2024-2030) of 2.97%, leading to a projected market volume of US$30.96m by 2030.
The average ad spending per capita in the Traditional Out-of-Home Advertising market is expected to be US$0.20 in 2024.
Ethiopia is witnessing a resurgence in Traditional Out-of-Home Advertising, with brands embracing billboards and signage to reach a diverse audience effectively.

Definition:
Traditional Out-of-Home (OOH) Advertising refers to all advertising revenues generated by traditional (physical) out-of-home media in public areas. The Traditional Out-of-Home Advertising market includes all ad spending on large outdoor formats, street furniture, transit and transportation, and others.

Additional information:
Traditional Out-of-Home (OOH) Advertising comprises advertising spending, users, and average revenue per user. The market only displays B2B spending. Figures are based on advertising spending and exclude agency commissions, rebates, production costs, and taxes. Key players in Traditional Out-of-Home Advertising include JCDecaux, Ströer, Focus Media Information, Hakuhodo, Dentsu, Clear Channel Outdoor, and APG SGA. For more information on the data displayed, use the info button right next to the boxes.

Traditional billboards (bulletins, large banners, inflatable billboards)
Traditional street furniture (advertising columns)
Traditional transit & transportation (traditional indoor and outside advertising in and on vehicles used for public transportation)
Traditional place-based media (e.g. traditional ambient media at point of sale, posters in restrooms)

Digital billboards (city-light boards)
Digital street furniture (city-light posters, city-light posters)
Digital transit & transportation (digital advertising in and on vehicles used for public transportation)
Digital place-based media (digital ambient media at point of sale)
Event- and promotion-related media

The Traditional Out-of-Home Advertising market in Ethiopia has been experiencing significant growth and development in recent years.

Customer preferences: Ethiopian consumers have shown a strong preference for traditional out-of-home advertising methods such as billboards and posters. This preference can be attributed to several factors. Firstly, traditional out-of-home advertising is highly visible and can reach a wide audience, making it an effective way for businesses to promote their products or services. Secondly, many Ethiopian consumers do not have access to the internet or other digital advertising platforms, making traditional out-of-home advertising the most effective way to reach them. Finally, traditional out-of-home advertising is often seen as more trustworthy and reliable than digital advertising, which has led to its continued popularity among Ethiopian consumers.

Trends in the market: One of the key trends in the Traditional Out-of-Home Advertising market in Ethiopia is the increasing use of digital technologies. While traditional methods such as billboards and posters are still dominant, there has been a growing interest in digital billboards and screens. This trend can be attributed to the increasing availability of affordable digital technologies in Ethiopia, as well as the desire of advertisers to engage with consumers in new and innovative ways. Digital billboards and screens offer advertisers the opportunity to display dynamic and interactive content, which can help to capture the attention of consumers in a crowded advertising landscape. Another trend in the market is the growing focus on targeting specific consumer segments. Advertisers in Ethiopia are increasingly looking for ways to tailor their messages to specific groups of consumers, in order to increase the effectiveness of their campaigns. This trend can be seen in the use of location-based advertising, where advertisers target consumers based on their geographic location. For example, a restaurant may choose to advertise on billboards near office buildings during lunch hours, in order to attract working professionals.

Local special circumstances: One of the unique aspects of the Traditional Out-of-Home Advertising market in Ethiopia is the high level of competition among advertisers. With limited advertising space available, advertisers must find creative ways to stand out and capture the attention of consumers. This has led to the use of bold and eye-catching designs, as well as the use of local languages and cultural references in advertising campaigns. Additionally, advertisers in Ethiopia must navigate a complex regulatory environment, which can impact the placement and content of their advertisements.

Underlying macroeconomic factors: The development of the Traditional Out-of-Home Advertising market in Ethiopia can be attributed to several underlying macroeconomic factors. Firstly, Ethiopia has experienced strong economic growth in recent years, which has led to an increase in consumer spending and a growing middle class. This has created a larger market for advertisers to target, and has contributed to the growth of the advertising industry as a whole. Additionally, the government of Ethiopia has implemented policies to attract foreign investment and promote economic development, which has created opportunities for advertisers to expand their operations in the country.

Data coverage:

Data encompasses enterprises (B2B). Figures are based on traditional out-of-home advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers offline out-of-home advertisements such as billboards, street furniture, transit and transport displays, and place-based media.

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. We use annual financial reports of the market-leading companies and industry associations, third-party reports, and survey results from our primary research (e.g., Consumer Insights Global Survey) to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as GDP, population, urban population, and internet infrastructure.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market. For instance, the S-curve function is well suited to forecast digital products due to the non-linear growth of technology adoption, whereas exponential trend smoothing (ETS) is more suited for projecting steady growth in traditional advertising markets.

Additional notes:

Data is modeled using current exchange rates. The impacts of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice per year in case market dynamics change.

This report presents a comprehensive analysis and additional information on the Advertising & Media market, in a PDF format.

When consumers take a break from smartphones, connected TVs, and computer screens, outdoor advertising is often there, promoting products and services on billboards and transit displays. Still, out-of-home (OOH) channels have also gone increasingly digital – today, online and programmatic solutions drive the industry's expansion worldwide. Mid-2023 estimates indicated that static OOH could barely grow half as fast as the digital OOH (or DOOH) subsegment between 2023 and 2025.