Bulk of Increased DOOH Ad Spend to Come from Traditional Television, Newspaper and Online Advertising Budgets
MIAMI BEACH, FL / ACCESSWIRE / September 30, 2021 / Expenditure on Digital Out of Home (DOOH) advertising in the U.S. was expected to represent about 36% of the total spent on out of home (OOH) advertising this year. According to new research from Alfi (NASDAQ:ALF), an AI enterprise SaaS advertising platform, however, 17% of senior advertising executives expect it to be over 50% as early as the end of 2021. Just over one in three (36%) anticipate DOOH advertising will reach this milestone by next year, and 25% expect it to happen in 2023.
Ad budgets are quickly shifting from traditional TV, newspaper and online to DOOH with 92% of advertising executives expecting the roll-out of digitized outdoor displays to speed up even more between now and 2026. When asked to choose three main areas of advertising from which this extra budget will be taken, 71% of advertising executives interviewed said television, followed by 58% who said online, and 46% who said newspapers.
Furthermore, 97% of senior advertising executives from around the world anticipate they will spend more on DOOH advertising this year than before the Covid-19 crisis, while 85% say spending will be at least 10% bigger, and 27% claim it will be at least 50% higher.
| Percentage change in anticipated spend on DOOH advertising in 2021 when compared to 2019 | Percentage of senior advertising executives interviewed |
Increase by up to 10% | 12% |
Increase by between 10% and 15% | 17% |
Increase by between 15% and 20% | 26% |
Increase by between 20% and 50% | 15% |
Increase by between 50% and 75% | 17% |
Increase by between 75% and 100% | 8% |
Increase by over 100% | 2% |
Stay the same | 3% |
"The Covid-19 crisis dramatically accelerated the digitization of society. This is reflected throughout the advertising sector and the way campaigns are being created, which helps explain the huge growth in DOOH advertising at a much higher speed than previously expected," said Paul Pereira, CEO, Alfi.
The huge roll-out of outdoor displays that are digitized is a key reason for this growth. Over the next five years, 56% of advertising executives interviewed expect the pace to increase dramatically, and a further 36% say the already fast-paced roll-out will speed up slightly.
Pereira added, "With our market leading technology, which helps advertisers to develop more sophisticated and targeted campaigns and our ability to provide detailed analysis on their effectiveness and reach, we are not only positioned to capitalize on this growth but also well-equipped to help brands scale as fast as the industry."
Alfi provides data-rich reporting functionality that informs advertisers that someone viewed their ad, the number of views, and each viewer's reaction to the ad. Advertisers are increasingly demanding improved performance and capabilities from the ad technology they utilize. Alfi delivers analytics, accountability, transparency, proof of engagement and actual impressions to advertisers.
Methodology
Commissioned by Alfi, PureProfile, a global research company, conducted 100 interviews amongst senior advertising professionals from across the U.S., U.K., Canada, China, France, Germany, and the UAE. Interviews were conducted online in September 2021.
About Alfi Inc.
Alfi, Inc. provides solutions that bring transparency and accountability to the digital out-of-home advertising marketplace. Since 2018, Alfi, Inc. has been developing its artificial intelligence advertising platform to deliver targeted advertising in an ethical and privacy-conscious manner. For more information, please visit: https://www.getalfi.com
Alfi Inc. U.S. Media Contacts
Danielle DeVoren / Laura Schooler
KCSA Strategic Communications
[email protected]
Alfi Inc. U.K. Media Contact
Perception A
Phil Anderson / Taylor Marriott
07767 491 519 / 07983 335 021
Alfi Inc. Investor Relations
TraDigital IR
Kevin McGrath
+1-646-418-7002
[email protected]
SOURCE: Alfi, Inc.