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About 95% of advertising executives expect digital-out-of-home (DOOH) advertising to grow over the next two years, with more than half estimating that growth will reach $50 billion or more, according to a recent report from Alfi (NASDAQ: ALF). The developer behind the AI targeted advertising platform released the report this month, after interviewing 100 senior-level advertising professionals across the globe. Here’s what the results of the survey say about the emerging DOOH advertising market.
DOOH Advertising Expected to Outpace Earlier Estimates
Initial estimates of the DOOH market estimated that the current $41 billion market wouldn’t exceed $50 billion before 2026. As consumers are increasingly embracing life outside of lockdown, however, brands and advertising executives are increasingly looking to DOOH advertising to stay connected with these audiences.
As a result of this post-pandemic push toward innovative DOOH advertising solutions, professionals in the industry are much more optimistic about the new technology’s potential than these estimates would suggest. Nearly two-thirds of respondents predicted the market would exceed $50 billion within 2 years and 16% anticipated it would reach $55 or $60 billion in that same time frame.
Behind this optimism is the consensus that advertising departments across the globe are increasing their spending on DOOH solutions in the coming years. About 50% of those surveyed by Alfi stated that DOOH spend would rise dramatically by 2026 while another 40% said spending would increase slightly.
DOOH Growth Driven by Increased Focus on Evaluating Advertising Campaigns
While society is becoming increasingly digitized and the advertising sector is evolving to reflect that, the pressure to deliver more personalized campaigns is creating a need for more data and powerful analytics to shape those targeted campaigns.
When asked why the overwhelming majority of advertising professionals expect to see increased spending on DOOH over the next few years, 62% cited the need for more effective ways to analyze live campaigns. Similarly, 60% reported a growing emphasis in general on evaluating advertising performance.
Privacy Remains a key Concern in Developing DOOH Advertising Campaigns
As this demand for live analytics and data-rich reporting grows, so too will the need for increased transparency and privacy-compliant solutions. This is where DOOH tech like Alfi’s AI advertising platform has an advantage. The intelligent DOOH software can create new ways for consumers to interact with brands while providing those brands with a live feed of key performance metrics that are essential for evaluating the effectiveness of advertising campaigns.
With Alfi, advertisers can be informed when someone views their ad while also tracking total number of views — along with individual viewer reactions — so that advertisers can gain insight into when and how viewers interact with and respond to advertisements. While the software tracks this wealth of valuable behavioral data, it does not gather or store the personal data or facial images of any viewers, keeping the advertising campaign compliant with GDPR, CCPA, HIPAA and other privacy laws.
Its fully privacy-compliant yet high-powered digital solutions like Alfi’s AI enterprise platform that’s fueling this increased interest in DOOH advertising as a way to achieve data-rich reporting and real-time campaign analysis in a more ethical, transparent way that respects the privacy of advertiser audiences.
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