Traditional Out-of-Home Advertising - NAFTA

in North American Free Trade Agreement (NAFTA), the country under discussion, is projected to witness ad spending in the Traditional Out-of-Home Advertising market reaching US$5.82bn by 2024.
The sector is expected to display an annual growth rate (CAGR 2024-2030) of 2.81%, leading to a projected market volume of US$6.88bn by 2030.
The anticipated average ad spending per capita in the Traditional Out-of-Home Advertising market is set to reach US$11.41 in 2024.
Traditional Out-of-Home Advertising in the NAFTA region is embracing digital transformation to enhance audience engagement and data-driven targeting strategies.

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 NAFTA is experiencing steady growth due to several factors.

Customer preferences: Customers in the NAFTA region still value traditional out-of-home advertising as an effective way to reach a wide audience. Despite the rise of digital advertising, billboards, transit ads, and other traditional formats continue to attract attention and deliver messages to consumers. This preference for traditional out-of-home advertising is driven by its ability to provide a physical presence in the real world, making it difficult to ignore or block.

Trends in the market: One of the key trends in the Traditional Out-of-Home Advertising market in NAFTA is the integration of digital technology. Digital billboards and interactive displays are becoming more common, allowing advertisers to deliver dynamic and targeted messages. This trend is driven by advancements in technology and the increasing demand for personalized and engaging advertising experiences. Digital out-of-home advertising offers flexibility and the ability to update content in real-time, making it an attractive option for advertisers. Another trend in the market is the focus on data-driven advertising. Advertisers are increasingly using data and analytics to better understand their target audience and optimize their out-of-home advertising campaigns. This trend is driven by the availability of data and the desire to make advertising more effective and efficient. By analyzing data on consumer behavior, demographics, and location, advertisers can tailor their messages to specific audiences and locations, increasing the chances of success.

Local special circumstances: In the United States, one of the largest markets in NAFTA, the Traditional Out-of-Home Advertising market is benefiting from the growth of the transportation sector. As more people commute to work or travel for leisure, there is an increased opportunity for advertisers to reach them through billboards, transit ads, and other out-of-home formats. Additionally, the high population density in major cities like New York and Los Angeles provides a captive audience for out-of-home advertising. In Canada, the Traditional Out-of-Home Advertising market is influenced by the country's vast geography and urban-rural divide. Advertisers need to consider the different preferences and behaviors of consumers in urban areas compared to those in rural areas. This requires a tailored approach to out-of-home advertising campaigns that takes into account the unique characteristics of each region.

Underlying macroeconomic factors: The growth of the Traditional Out-of-Home Advertising market in NAFTA is also influenced by macroeconomic factors. A strong economy and consumer confidence contribute to increased advertising spending, including investment in out-of-home advertising. When businesses are doing well, they are more willing to invest in advertising to promote their products and services. Additionally, political stability and favorable business conditions in the NAFTA region attract both domestic and international advertisers, further driving the growth of the market. In conclusion, the Traditional Out-of-Home Advertising market in NAFTA is experiencing steady growth driven by customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. The integration of digital technology, the focus on data-driven advertising, and the growth of the transportation sector are all contributing to the growth of the market. Advertisers in the NAFTA region are recognizing the value of traditional out-of-home advertising in reaching a wide audience and are investing in this medium to promote their products and services.

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.