OOH advertising
The OOH advertising industry, as mentioned, is seeing continuous growth. The OOH Marketing Association of Canada (OMAC) cites data from Nielsen showing ad revenue grew by six per cent in the first quarter (Q1) of 2016 compared to Q1 of 2015. And having already experienced significant increases over the past five years, global OOH revenue was forecast to rise by another four to five per cent over the rest of 2016. The association credits this trend to a number of factors, including ‘audience erosion’ for other media, an increasingly mobile and active populace and new investments in digital OOH (DOOH) technology.

OOH has remained strong during a period of ‘audience erosion’ for other media.
Photo courtesy Bell Media Agency
At the same time, OOH is also exerting an increased influence on consumers, according to new research shared by OMAC. First, a study of more than 40,000 Canadian shoppers by BrandSpark International examined the role OOH plays in relation to consumer habits. It found more than 75 per cent of shoppers paid attention to OOH ads, in part because people are particularly active and alert when outside their homes.
Next, an OMAC-commissioned study showed audience recall for DOOH ads was particularly high in major cities, where more than one half of surveyed shoppers could recollect the ads on a weekly basis. The study found four in 10 shoppers were interested in interacting with digital ads to obtain information about or promotional offers of products and services. Further, more than seven in 10 survey participants agreed digital signage was a good means by which to communicate with them.
“DOOH is seen as an effective way to pass along timely and relevant information to Canadians,” says Rosanne Caron, president of OMAC and a member of Sign Media Canada’s editorial advisory board (EAB). “It is the ideal medium for everything from public safety messages to product promotions.”
Indeed, some of OOH’s most significant new growth is on the digital side. ISA’s economic reports suggested global revenue for DOOH advertising would surpass $1.6 billion U.S. by the end of 2016; and its share of the OOH market within the U.S., by way of example, would top 17 per cent for 2016 and will reach 22.4 per cent in 2020.
REFLECTIONS AND PREDICTIONS |
“The move to energy-efficient light-emitting diodes (LEDs) will continue to grow. With slower growth in the retail sector, we can expect to see more acquisitions and mergers, which will lead to the installation of new exterior signs. And with rising energy costs, the retailers will look at cost savings whenever a sign needs to be replaced.”
“Canada’s sign industry will continue to grow at a steady pace in 2017, thanks in part to infrastructure programs. We see a continuous demand for signage projects in Canada, in
the U.S. and overseas. The quality of the Canadian sign industry is competitive on an
international level, while the low Canadian dollar is an attractive incentive for clients abroad.” “Fabric and other textile printing will have a long-term effect on the industry because of
the benefits of using environmentally friendlier materials, the ability to stretch, shape and illuminate graphics, the ease of packing and the lower cost of shipping.”
“Fifteen years ago, the industry had a much higher barrier to entry, due to the high cost
of equipment. Today, by becoming a broker, you can get into the game by making a lot of phone calls. You just need a mobile phone and a laptop. This increased competition is
a danger because it beats down our margins.” “With new standards like those developed, implemented and enforced under the Accessibility for Ontarians with Disabilities Act (AODA), accessible sign fabrication has a role to play in new and innovative wayfinding applications for built environments, as part of the promotion of independence through mobility.”
“The next frontier for outdoor digital signage is ‘smart cities,’ with interactive kiosks sending information to people’s smartphones. Let’s say you’re at Toronto’s Union Station and you want to travel to Niagara Falls, Ont. You’ll be able to go to a kiosk, find the schedule and buy your ticket.
This is a major topic of discussion for the Canadian Urban Transit Association (CUTA).”
“I started out as a sign artist with a few cans of lettering enamel and a fistful of quills, but the sign business is no longer the hands-on art is used to be. Now it is little more than technicians using clip art to print vinyl wallpaper and repairmen servicing electronic menu boards. Short of the occasional place that wants a hand-lettered window for a nostalgic look, the art has died. I see where the future lies and I don’t want to go there. My decision to retire is the correct one.”
“Recent studies show OOH advertising reaches consumers when they are in an alert state of mind, which has a positive impact on purchasing behaviour, as they are more likely to act on ad messages they see outside the home, compared to inside the home.” |
With files from ISA, IHS, IDC, PRIMIR, InfoTrends, SGIA, Futuresource Consulting, Transparency Market Research, ScreenScape Networks and OMAC,. For more information, visit www.signs.org, www.ihs.com, www.idc.com, www.primir.org, www.infotrends.com, www.sgia.org, www.futuresource-consulting.com, www.transparencymarketresearch.com, www.screenscape.com and www.omaccanada.ca.