Dubai: Without any concrete figures it is difficult to estimate the size of the ‘digital-out-of-home’ (DOOH) market. But the Dubai Press Club and Deloitte suggests that outdoor (which includes cinema advertising) is expected to grow to $494 million (Dh1.81 billion) by the end of 2015 at a rate of 6 per cent CAGR (compounded annual growth rate).
In the UAE this should amount to 15 per cent of total advertising spend.
Although this offers an indicator of the size of the digital-out-of-home market, investors are forced to look for other signs that point to the future of the industry within the UAE and how strong the catalysts are that will fuel its growth.
Global out-of-home advertising revenue will exceed $40 billion by 2016, reaching $44 billion by 2018, with the US, China and the UK being key growth markets. According to PWC, in certain emerging markets digital-out-of-home advertising revenue is forecast to grow even more rapidly, with compound annual growth rates of nearly 30 per cent.
The underlying drivers remain open to debate. Certainly the use of technologies such as near-field communication, beacons and the proliferation of social media, which will allow for real-time user-generated content, are obvious drivers — as a study by PQ media concludes: ‘An average consumer is exposed to digital out-of-home media for 14 minutes per week in 2013, a 75 per cent increase from just eight minutes in 2007 because consumers are spending more time with media outside their homes and are engaging more with content on digital-out-of-home screens that are linked to mobile devices.’
When you relate this to the UAE and consider that mobile penetration is even higher, and public spaces are more confined, an optimistic comparison can be drawn.
While mobile integration is certainly a driver, it is location — leveraged through the advancement and expansion of digital place-based media technology — that will be the biggest driver of digital-out-of-home in the UAE.
In this regard, two platforms — digital place-based media and location-based mobile marketing — are proving highly effective at reaching on-the-go consumers. Digital place-based networks (or DPNs) utilise strategically placed digital signage displays, each with its own IP address, allowing advertisers to reach consumers with highly targeted messages.
Similarly, location based mobile providers have the ability to triangulate a mobile device’s location to a specific radius and push content and promotions that are tied to active locations. When combined, these platforms provide unique synergies for marketers... and as a consequence, the potential for digital-out-of-home is huge.
The UAE is categorised as a high-growth market by PWC and airports across the region are putting digital signage at the core of their communications strategy. Thus investment is only set to increase. Once malls, hotels, commercial and residential buildings are added to the equation, there is sizeable room for growth. Which is great news for brands demanding more results and a better return on their investment, something that digital-out-of-home provides with ease.
Credit: The writer is the CEO of Elevision Media.
