Out-of-Home's Conversion to Digital Accelerates in the UK - eMarketer
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Out-of-Home's Conversion to Digital Accelerates in the UK

Spend up 30% YOY in Q2

August 18, 2017 | Media Buying

Following a year in which digital out-of-home (DOOH) ad spending in the UK hit an all-time high, 2017 has seen the digitization of the UK’s out-of-home advertising continue to advance.

According to PricewaterhouseCoopers (PwC) figures published by out-of-home ad industry trade group Outsmart, UK DOOH investment jumped 30% year over year in Q2 2017 to £127 million ($171.4 million), and rose nearly 19% from the £107 million ($144.42 million) invested in DOOH in the preceding quarter.

Steadily growing spending propelled DOOH’s share of overall out-of-home ad investment to 46% in Q2, up 10 percentage points from a year earlier, and to 44% for H1 2017.

DOOH gains contrast with an overall out-of-home UK ad market that saw total revenues rise just 1.7% for the quarter and inch up only 0.6% in 2017’s first half vs. 12 months earlier.

“This quarter, DOOH accounts for the highest proportion of revenue the sector has seen,” said Mark Maitland, PwC’s media strategy partner. “We are looking forward to seeing further developments in the use of technology for both display and buying that will push this number closer to the 50% mark.”

UK Digital Out-of-Home Ad Spending, 2010-2018 (millions of £, % change and % of total)

Outsmart attributes digital’s ever larger share of the out-of-home advertising sector to increased availability of digital signage at “premium” sites formerly only available for nondigital efforts, and by continuing adoption of DOOH by advertisers in general.

PwC’s figures support earlier forecasts for rising UK DOOH in 2017. In June, GroupM said it expects spending to rise 21.1% for the year—the latest in a string of double-digit annual increases going back to at least 2010—and be responsible for 45% of total out-of-home ad investment.

eMarketer’s most recent forecast for UK DOOH predicts it will achieve a slightly larger share of total out-of-home ad investment this year—48.4%—than GroupM’s estimate.

—Cliff Annicelli

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