Digitisation is driving Out of Home growth, especially in Europe, World Out of Home Organization (WOO) President Tom Goddard said at the WOO Europe forum, held in Milan this week. Digital now accounts for 40% of revenues from less than 10% of locations.
But that means an opportunity is being missed by Classic (static) posters, with far lower revenue achievement despite the vast majority of Out of Home locations.
In the UK, for example, Classic delivers 90% reach of all adults in a week at about 20% of the cost of Digital but only accounts for 60% of revenue.
Accordingly, said Goddard, Classic is not only a fantastic branding opportunity and an important way to drive OOH revenue. "Try buying a Classic poster near a McDonald's or KFC and you'll find they've bought it long term because it works."
Overall Goddard painted a rosy picture for global OOH growth, building on its current $40bn value, now over 5% of global adspend.
Europe has overtaken the US for the first time according to WOO figures, with China still the market leader and APAC as a whole accounting for about half of global adspend.
Summing up, Goddard unveiled his Ten Commandments for OOH growth:
- Reposition Classic Channel
- Digitise More Inventory
- More Ownership consolidation
- Measure all formats in all markets
- Automate the entire trading process
- Collaborate more and
- Get behind National Trade Associations
- Control carbon footprints
- Harness the potential benefits of AI
- Take advantage of Retail Media.
