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4 Factors Driving the Continuous Growth of Outdoor Advertising Revenue

15 March 2025

Outdoor advertising revenue continues to rise thanks to digitalization and increased mobility. Explore the trend analysis, key driving factors, and business opportunities!

Out-of-Home Advertising (OOH) has experienced rapid growth in recent years. This surge is driven by the integration of digital technology and shifting media consumption patterns, making outdoor ads more effective in reaching audiences.

In Indonesia, outdoor advertising revenue has shown a positive trend in line with increasing public mobility and the adoption of digital technology in the advertising industry. This article explores the key drivers behind the growth of OOH advertising and the business opportunities available for industry players.

The Growth Trends of OOH Advertising in Indonesia and Worldwide

Out-of-Home Advertising has become a continuously evolving marketing strategy, both nationally and globally. The industry’s rapid expansion aligns with lifestyle changes where people spend more time outside their homes, increasing exposure to outdoor advertisements.

According to Eye Indonesia, OOH advertising in Indonesia has undergone significant transformation with the adoption of digital technology, location-based data utilization, and integration with social media platforms. These innovations enable outdoor ads to be more interactive and targeted, especially with programmatic advertising systems that automate ad space purchases.

Data from GroupM reports that the global advertising industry set a new record in 2024, surpassing $1 trillion in total revenue. This surge was fueled by rising investments in digital advertising, which grew by 9.5% throughout the year.

With the continued expansion of technology, the outdoor advertising industry has proven its effectiveness in engaging modern, digitally connected audiences.

Key Drivers of OOH Advertising Growth

 

Source: CIty Vision

1. Increasing Public Mobility

As people spend more time outside their homes, the exposure to outdoor advertisements grows. OOH advertising effectively reaches audiences who are harder to target with digital ads, making it an increasingly valuable marketing channel.

2. More Innovative Digital OOH (DOOH) Technology

The use of videotrons, programmatic advertising, and interactive technology in OOH advertising allows advertisers to adjust content in real time. With these digital advancements, outdoor advertising revenue continues to rise as demand for more flexible and effective ad solutions increases.

3. Brand Trust in OOH Advertising

According to Nielsen, studies show that consumers trust outdoor advertising more than digital ads, which are often perceived as intrusive. OOH advertising enhances a brand’s premium and exclusive image, boosting credibility and appeal among audiences.

4. The ROI Effectiveness of OOH Advertising

Compared to digital ads, which require ongoing costs, OOH advertising offers broad reach with a more stable investment. According to Simon Miller, as cited on LinkedIn, Out-of-Home advertising plays a crucial role in reinforcing marketing strategies by providing sustained exposure and maximum visibility. When placed strategically, OOH ads can deliver compelling and impactful messages to audiences.

Business Opportunities in the OOH Advertising Industry

1. Media Business and Ad Space Leasing

Investing in strategic advertising spaces presents a lucrative business opportunity. With increasing demand for outdoor media, this sector offers high potential profitability, especially in prime locations such as city centers and high-traffic areas.

2. Creative and OOH Ad Design Services

Creative design is a key element in the effectiveness of outdoor advertising. Businesses offering innovative design services have significant growth potential, particularly as demand for engaging visual content aligned with market trends continues to rise.

3. Digital Out-of-Home (DOOH) and Programmatic Advertising

Programmatic advertising technology enables advertisers to deliver ads based on relevant audience data. This creates business opportunities for DOOH platform developers who can offer AI-based solutions for personalized advertising.

4. Collaborations with Brands and Advertisers

Partnering with brands to manage OOH campaigns can be a profitable business strategy. Sponsorship-based or partnership business models allow media advertising companies to collaborate with various brands to create more engaging and effective campaigns.

Challenges in the Outdoor Advertising Industry and How to Overcome Them

 

Source: City Vision

1. Advertising Permit Regulations

Different regions have varying regulations regarding billboard placements, making it crucial to understand local rules before investing in this sector. Proper licensing helps avoid sanctions and ensures ads comply with legal requirements.

2. Intense Competition in OOH Advertising

With more players entering the industry, competition is becoming increasingly fierce. Differentiation strategies, such as offering interactive media or AI-powered OOH technology, can help businesses stay competitive.

3. Choosing the Right Ad Placement

The effectiveness of OOH advertising heavily depends on location. Analyzing traffic data and audience demographics can help advertisers select the most strategic locations for their campaigns.

City Vision’s Competitive Edge in OOH Advertising

As a leading provider of OOH advertising solutions, City Vision offers innovative services backed by cutting-edge technology. Our assets are equipped with the latest digital advancements to ensure ads are dynamic and engaging for audiences.

Beyond traditional OOH advertising, City Vision provides data-driven insights that help brands develop more effective marketing strategies. We also offer creative and dynamic content designed to maximize the impact of your advertisements, ensuring your brand’s message reaches its target audience optimally.

Optimize Your Outdoor Advertising Campaigns with City Vision

With the OOH advertising industry continuing to grow, now is the perfect time for businesses to capitalize on this opportunity. City Vision is ready to help you create outdoor advertising campaigns that not only capture attention but also deliver optimal results.

Don’t let your brand get lost in the crowd! Trust City Vision for your OOH advertising strategy and maximize your outdoor advertising revenue to achieve business success. Contact us today and take your marketing campaigns to the next level!

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