TV and press budgets face axe in digital outdoor boom

The entertainment and media sector will see the biggest increase in the use of digital out of home advertising over the next 12 months, with TV and newspaper ads the most likely to suffer from the expansion.

That is the key conclusion of a new global study by AI enterprise SaaS advertising platform Alfi among senior ad executives, including CEOs, which found 66% believe entertainment and media will see rapid increases in the use of DOOH followed by 62% who point to the Government campaigns sector and 61% who highlight the retail industry.

The executives questioned in the UK, US, France, Germany, Canada, Australia, and the UAE believe the finance industry will also increasingly use DOOH advertising, with 58% predicting it will see the biggest rise in DOOH use followed by 52% who pinpointed telecoms.

The switch to DOOH will, however, mean budgets being moved away from other areas of advertising, with TV and newspapers expected to be the hardest hit. Around 57% of executives believe TV will be reduced to fund DOOH and 53% say newspaper adspend will suffer.

Just 15% of executives questioned believe out of home budgets will be diverted to DOOH and only 21% believe online advertising will suffer as a result of the switch to DOOH.

Alfi interim CEO Peter Bordes said: “Entertainment and media is ideally suited to DOOH as advertisers can make full use of the technology to provide additional content and the same applies to Government campaigns and the retail sector.

“Advertising budgets are increasing but the rise of DOOH does mean other areas will potentially suffer as money is moved to where advertising can be more effectively measured and analysed.”