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This presents the DOOH market with a lucrative opportunity, which may boost its adoption over the forecast period.
Digital out-of-home (DOOH) marketing hugely impacts the Middle East and Africa market, and companies are experiencing considerable growth in this industry sector. Numerous advertisers are entering this market to increase awareness of their brands and products, and they are doing it by enticing their target audience in brand-new ways. Being present on a little screen is insufficient today; spreading messages far and wide is more crucial than ever. It entails creating 360-degree ads featuring a presence "IRL"( in real life).
The Saudi market has the chance to advance this facet of marketing in line with the kingdom's 2030 Vision by keeping up with emerging technology and implementing them in new settings. This entails switching out print-based billboards for digital ones to protect the environment. As a result, the existing industry will develop into a vibrant media sector that blends in naturally with cities and society, is more ecologically friendly, and appeals to the audience's sense of aesthetics.
One of the top market trends is the rise of automation and programmatic platforms since they drive growth in OOH wallet share by reducing campaign purchasing friction. They replace the inefficient buying procedure of RFPs, human negotiation, and manual orders. In the future, artificial intelligence-based algorithms are expected to enable "smart advertisements,"which can adapt and improve according to the preferences of target audiences over time. Also, digital screens will track purchase behavior and leverage sensor technology to detect passersby demographic features and track facial expressions and use these sources as inputs for artificially intelligent advertisements.
Among various transit environments, airports have proven to be an ideal environment for advertising, particularly for top-tier and luxury brands. Airports are under pressure to figure out ways to generate more and more revenue. Converting static displays like posters to digital displays allow airports to utilize the same space to sell to multiple advertisers instead of just one. That multiplies the amount of revenue exponentially. Also, airports can share the cost burden of upgrading to new advertising technologies by bringing in advertising partners. Airport Ads has significantly invested in various international airports, including Sharjah (UAE) and Kenneth Kaunda (Zambia), in developing DOOH solutions and experiences that integrate innovative ideas and executions.
To expand their presence in the different regions and enhance their product portfolio, the companies are collaborating. For instance, In May 2022, Commercial and technological cooperation was established between Pikasso, the provider of out-of-home advertising (OOH) in the Caucasus, North and West Africa, and the Levant, and Pladway, the top digital out-of-home (DOOH) programmatic company in Italy.
Organizations and digital marketing companies were forced to follow the digital trend suddenly. This has given digital marketing companies more room to test customer ideas. The pandemic, for example, has changed the way firms work. More and more businesses are adopting a digital work structure. Despite the bleak environment, digital marketing businesses have the required edge to function. The lockout has given agencies the chance to identify and rethink their various digital job tasks in the absence of a physical office.
MENA Digital Out-of-Home (DOOH) Market Trends
The Billboards Segment is Expected to Drive the Market's Growth
Billboards are large advertising structures for branding and advertising events and products. Due to its size and impact, Billboard advertising is considered one of the most popular outdoor advertising types. There are generally deployed in high-traffic areas such as highways and expressways, wherein advertisers spend vast amounts of investments to grab consumers' attention.
Some companies take full advantage of billboard advertising as average people spend significantly of their day outside their homes and are exposed to advertisements while driving a vehicle. The billboards' design is majorly dependent on factors such as the location of the signs, advertising budgets, and the type of products that are supposed to be promoted.
Bulletins are the most effective forms of standard billboards and are considered the most visible form of billboards that are used in public places, generally with significant automobile traffic or pedestrian movement. There are various sizes of billboards, such as six-sheet billboards, 16-sheet billboards, 32-sheet billboards, 48-sheet billboards, and 96-sheet billboards. With compact dimensions of 1800mm x 1200mm, six-sheet billboards are usually seen at railway stations, bus stops, and shopping centers and are significantly effective at connecting brands to a young and professional audience. 16-sheet billboards are used in highly urbanized areas generally elevated above the ground near roadsides. The size and cost of these billboards make them suitable for targeting consumers in busy areas and optimizing conversion rates, with busy shoppers and commuters representing the key and most accessible segments.
32-sheet billboards share certain similarities with 16-sheet advertisements, with both measuring an estimated 3048 mm tall. Companies use 32-sheet billboards to direct passing customers to a nearby storefront while leveraging the additional width to enlarge image dimensions, enhance clarity, or include secondary messaging.
To reach more customers, the firms are collaborating with billboard providers to advertise their company in different areas of the region. For instance, in March 2022, A deal for the rental of 40 digital billboards for SAR 1 billion was signed by Arabian Contracting Services Company (Al Arabia). It will be erected on bridges and tunnels in Jeddah. After the signing on March 16, 2022, the contract will be in effect for ten years. By growing the number of digital billboards throughout the Kingdom, the Saudi publicly traded company hopes to expand in the information technology sector.
United Arab Emirates is Expected to Hold a Major Market Share
In Dubai, the outdoor advertising media are becoming more noticeable. During the Dubai Shopping Festival and Dubai Summer Surprises, this was very evident. Even without them, one can still observe electronic billboards, signage, and outdoor media boards in a variety of places. Emirates Neon recently received an AED 2 million deal from the Dubai Municipality, giving them three years of exclusive rights to sell advertisements on the 230-bus fleet.
A wide variety of products and services are offered in Dubai's advertising sector, and major sums are spent there by businesses on branding and marketing. One of the most popular forms of branding and advertising is Digital -out-of-home (DOOH) advertising. In fact, the Gulf countries are obsessed with having the biggest structures or billboards. Dubai now holds the record for the biggest billboard. Emirates Intellectual Property Association - EIPA (UAE), in Dubai, UAE, achieved the largest outdoor advertising structure (billboard), measuring 6,260 m2 (67,382 ft2 11 in2).
The companies are entering into different partnerships to improve their advertisement standards. For instance, in June 2021, The Roads and Transport Authority (RTA) and Hypermedia FZ LLC entered into a partnership agreement for the investment and administration of the Dubai Metro outdoor advertising. In accordance with the deal, Hypermedia will be responsible for developing advertising spaces, as well as creating, running, and promoting advertising services at stations, trains, and lines of the Dubai Metro (Red & Green Lines, as well as Route 2020) for a period of ten years.
Furthermore, in September 2021, Middle Eastern retailer Jashanmalhas installed a series of LED and LCD displays from Hikvision to boost foot traffic to its Dubai Festival City Mall showroom and to create an in-store consumer experience. The design, created by Jashanmaland Hikvision consultants, features two "arch-shaped"LED displays at the shop entrance. These 15-meter-long, 1-meter-wide panels rise up from the ground and cover the store's "arched"entryway. Constantly drawing consumers inside, the panels display artistic material that is consistent with the Jashanmalbrand.
In September 2021, In order to bring dynamic advertising in taxis and ride-sharing vehicles to the MENA region, Multiply Group, a subsidiary of the International Holdings Company (IHC), which is listed in Abu Dhabi, has extended its investment in its US digital media platform with a follow-on investment in Firefly. The initial investment by Multiply, announced in May 2021, amounts to AED 55 million and includes the creation of a joint venture with Firefly in Abu Dhabi.
MENA Digital Out-of-Home (DOOH) Industry Overview
The competitive landscape of the Middle East and North Africa Digital Out-of-Home (DOOH) Market is moving toward moderate fragmentation owing to the entry of several new market players and the increasing activities, such as product innovation and product development by the regional market players, are expected to provide growth opportunities further. Also, the vendors are viewing strategic partnerships and acquisitions as a lucrative path to capture maximum market share in the region.
March 2022 - An Abu Dhabi-based communications company, Viola Communications, is launching a digital out-of-home (DOOH) advertising platform that provides businesses looking to launch marketing campaigns with a new and dynamic option. The change gives firms more options for creatively executing their marketing initiatives. DOOH advertising is quicker and simpler to set up, and it can be automated and remotely changed to accommodate rapid changes in the creative.
February 2022 - The Jawharais a brand-new double-sided digital billboard in Dubai that was manufactured and installed by Daktronics in collaboration with BackLiteMedia. The exhibit opened in February 2022 and is situated on Sheikh Zayed Road across from the Museum of the Future to maximize pedestrian watching. Together with Blue Rhine Industries, Yerevan Steel constructed the framework that holds the show in place and encloses it. The panels, which span 11.52 meters high by 7.68 meters wide on either side of the tower, use 10-millimeter pixel spacing to produce clear, dramatic visuals. For these displays to function as expected in Dubai's outdoor climate, Daktronics has also integrated its superior environmental protection technology.
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