Alfi study reveals ad ecosystems and networks, plus the rise of smart cities, will fuel strong growth in digital out of home (DOOH) advertising

65 per cent of advertising executives believe market will be worth between US$50bn and US$55bn by 2026, while 30 per cent expect it to surpass US$55bn.

Seventy-four per cent of global senior advertising executives strongly believe developing and expanding ad ecosystems and networks, in line with the rise of smart cities, will offer explosive growth opportunities in the Digital Out of Home (DOOH) advertising market, according to new research from Alfi (Nasdaq: ALF), an AI enterprise SaaS advertising platform. Furthermore, 93 per cent believe that society has become more digitized during the Covid-19 crisis, which will fuel expansion in the DOOH advertising market.

“Digital technology in outdoor advertising offers advertisers and brands the advantage of reaching target audiences with relevant content and increased interaction levels at a relatively lower cost than traditional advertising,” said Paul Pereira, CEO, Alfi. “Increased popularity of these features and reliance on intelligent screens that include our software is preparing brands to capitalize on the shifting advertising market.”

Additionally, six out of ten (61 per cent) senior advertising executives interviewed believe strongly that given the inherent characteristics of outdoor advertising, digital technology is becoming well integrated with the changes in consumers’ interaction with advertisers.

Out-of-home (OOH) advertising is traditional (i.e., non-digital and non-programmatic) outdoor advertising, targeting consumers when they are in public places, commuting to work, or in specific commercial locations. DOOH advertising is OOH powered by technology that provides features including tracking, retargeting, personalization of ads, and greater attribution and measurement of campaigns.

“As consumer preferences and lifestyles continue to change, the focus for brands and advertisers should remain on catering to people’s unique needs,” added Pereira. “Alfi is already seeing an increase in consumers’ interest in, and willingness to, interact with digital advertising outside of their homes when the content is interesting and well-targeted.”

Advertisers are increasingly demanding improved performance and capabilities from the ad technology they utilize. 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, as well as analytics, accountability, transparency, proof of engagement and actual impressions.