The UK OOH (Out of Home) advertising sector saw notable growth in Q2 2024. According to the latest figures from Outsmart, the trade body for OOH, and compiled by PwC, there was a year-on-year increase driven primarily by the ongoing digital transformation within the industry. As more brands utilize Digital OOH (DOOH), the sector continues to evolve and expand its reach.
Key Statistics
- Q2 2024 Total OOH Revenue: £355 million
Year-on-Year Growth: 17% - Q2 2024 Digital OOH Revenue: £234.3 million
Year-on-Year Growth: 21%
Percentage of Total OOH Revenue: 66% - Q2 2024 Classic OOH Revenue: £120.7 million
Year-on-Year Growth: 11% - H1 2024 Total OOH Revenue: £646 million
Year-on-Year Growth: 17% - H1 2024 Digital OOH Revenue: £426.4 million
Year-on-Year Growth: 21%
Percentage of Total OOH Revenue: 65% - H1 2024 Classic OOH Revenue: £219.6 million
Year-on-Year Growth: 9% - Q1 2024 Total OOH Revenue: £292 million
Year-on-Year Growth: 16.4% - Q1 2024 Digital OOH Revenue: £190.8 million
Year-on-Year Growth: 22.8%
Percentage of Total OOH Revenue: 65% - Q1 2024 Classic OOH Revenue: £101.2 million
Year-on-Year Growth: 6.2%
Q2 2024 Performance Overview
In Q2 2024, the UK OOH industry generated £355 million in revenue, a 17% increase compared to the same period in 2023. This growth highlights the sector’s resilience in a post-pandemic landscape. Digital OOH, a key driver of this success, recorded a 21% year-on-year increase, now accounting for 66% of total OOH revenue. Classic OOH formats also saw positive growth, with an 11% increase.
Year-to-Date Success: H1 2024
During the first half of 2024, total OOH revenue reached £646 million, reflecting a 17% growth compared to H1 2023. Digital OOH continued to dominate, with a 21% year-on-year growth, contributing £426.4 million to the total revenue. This segment now represents 65% of all OOH revenue. Classic OOH formats also saw a 9% increase, bringing in £219.6 million, underscoring the continued relevance of traditional advertising methods in the digital age.
Sector-wise Breakdown: Environment-Specific Performance
The report offers insights into the performance of OOH advertising across different environments, including Transport, Roadside, and Retail/Leisure sectors:
- Transport: In 2023, the Transport sector generated £192 million, benefiting from high visibility in transport hubs. This sector remains a significant contributor to OOH revenue, leveraging digital screens and billboards in high-traffic areas.
- Roadside: Roadside advertising remains the largest revenue generator, with £417 million in 2023. Digital billboards along busy roads have been particularly effective in reaching large audiences, contributing to consistent year-on-year growth.
- Retail and Leisure: Retail and Leisure locations brought in £115 million in 2023, with digital signage playing a key role in engaging shoppers and visitors. The flexibility of digital formats in these environments allows advertisers to tailor messaging based on various factors, making it a highly effective medium.
Digital OOH Revenue by Environment
The “UK Digital Out of Home Revenue by Quarter and Environment” chart provides further insights into the quarterly performance of DOOH across different environments:
- Roadside and Transport: These environments have consistently led in revenue generation, demonstrating the dominance of digital formats in high-visibility locations. The chart highlights the steady growth of these sectors over the years, with significant quarterly contributions, particularly in recent times.
- Retail and Leisure: While not as dominant as Roadside and Transport, Retail and Leisure environments have shown steady growth, reflecting the increasing use of digital signage in these areas. The ability to deliver targeted, dynamic content in retail settings has made this environment increasingly attractive to advertisers.
Industry Growth and Future Outlook
The growth of the OOH industry over the past decade has been significant, with Digital OOH emerging as a dominant force. Revenue trends from 2010 to 2024 indicate a steady increase in OOH advertising spend, driven by the adoption of digital technologies and the industry’s ability to adapt to changing market conditions.
As 2024 progresses, the OOH sector is well-positioned to capitalize on the continued shift toward digital formats. The integration of advanced technologies, such as programmatic advertising and data-driven targeting, is expected to further enhance the appeal of DOOH, attracting more brands and driving additional growth.
Justin Cochrane, Chair of Outsmart, expressed optimism about the future of OOH advertising, stating, “The momentum across the first half shows 2024 is going to be a great year for Out of Home as brands increasingly utilize its broadcast reach and creative dynamism to captivate large audiences.”
Andy Lobo, Director at PwC, added, “The OOH sector’s recovery to pre-pandemic levels last year has been followed by continued strong growth. H1 2024 not only showed a 17% increase over last year but also a 9% growth compared to H1 2019, underscoring the sector’s resilience and adaptability.”
Conclusion
The Q2 2024 results, combined with strong performance in Q1, highlight the strength and potential of the Out of Home advertising sector. With digital formats leading the charge, the industry is poised for a promising future, offering advertisers powerful tools to connect with audiences in an increasingly digital world.
To explore the full details and insights from the Outsmart report on UK Out of Home Advertising for Q2 2024, you can download the original report directly from the Outsmart website: https://www.outsmart.org.uk/site/userfiles/File/20240813100035_UK_Out_of_Home_Revenue_-_2024_Q2.pdf
Read the Q1 2024 Report at https://www.signageinfo.com/insights/43979/uk-ooh-advertising-q1-2024/
