Middle East & Africa Digital Out-of-Home Advertising (DOOH) Market Research Report: Forecast (2023-28)

Market Definition

Digital out-of-home (DOOH) advertising includes billboards, on-car ads, bus-stop shelters, etc., powered with Adtech like geofencing, tracking, retargeting, attribution, personalizing, measurement, etc. It is used by end-users like retail, real estate, financial services, government, etc., to reach out to their consumers. It allows them to advertise to consumers in public places, commuting to work, waiting (e.g., in elevators), and in specific commercial locations.

Additionally, the Programmatic digital out-of-home (DOOH) allows the automated buying & selling of digital billboards and screens through a Demand Side Platform (DSP) & Supply Side Platform (SSP). The automated buying option further assists the adoption of digitalization in OOH advertising through the deployment of DOOH screens, such as digital mupis, which attract visitors' attention & create awareness among the viewers regarding the brands.

Further, DOOH advertising is also equipped with technology that provides advertisers with enhanced traffic data that allows them to map the number of viewers who came across their ads in a given period, hence augmenting the growth of the market.

Market Insights & Analysis: Middle East & Africa Digital Out-of-Home Advertising (DOOH) Market (2023-28)

The Middle East & Africa Digital Out-of-Home Advertising market is projected to grow at a CAGR of around 23% during the forecast period, i.e., 2023-28. The market is gaining traction in countries like Saudi Arabia, the UAE, South Africa, Qatar, etc., and the introduction of digitalized services in sectors such as retail, hospitality, real estate, and automotive, among others, is contributing to the growth of digital out-of-home advertising. The Digital Out of Home (DOOH) advertisement has gained popularity in the Middle East & Africa region in recent years, owing to which, the DOOH companies are expanding their footprints across the region to meet the growing demand for the DOOH. For instance:

In 2022, ELAN Media, an OOH advertising company, launched InMotion for the new cutting-edge analytical platforms for OOH audience to provide insights & measurements.

Besides, the growth of digital out-of-home advertisement services is clogged in some territories, including Iran, Iraq, Sub-Saharan countries, etc., due to frequent power outages & higher tariffs, poor technology, etc., which leads to a higher price for advertising.

Furthermore, digital out-of-home advertising gained significant importance in the Middle East & Africa region during the historical years, to reach the targeted groups due to the ineffectiveness of traditional advertising methods such as television, newspaper, online platforms, etc. Along with this, the integration of AI enhances targeting the customers by utilizing data collected, every time the out-of-home advertising space is accessed. When customers interact with the screen on a regular basis, AI technology learns about their preferences & adjusts their advertisements accordingly. Hence, the integration of these techniques increases the overall impact of the DOOH advertisement compared to the traditional billboards, owing to the wide reach & network and in-depth customer information it offers.

Moreover, in countries such as the UAE, Saudi Arabia, Morocco, and others, time spent watching TV is decreasing day by day, although it was previously targeted by advertisers as the most important source for advertising. Hence, this shift in consumer perception has compelled stakeholders in the DOOH advertising industry to seize emerging opportunities in the market to encourage growth in the coming years. 

Key Trend in the Market

• Inclusion of Storytelling Approach in the DOOH Advertising

As the advertisement industry expands across the Middle East and North Africa region via online platforms, email services, newspapers, television, and other outlets, the general public has become less aware of it. Storytelling has been a new way of advertisement adopted by DOOH companies in the region, which only reveals the brand narrative & engages the customers with more creative & out-of-the-box ideas. The primary objective of the storytelling approach is to tell a story that includes an impactful message for the viewers. The purpose of storytelling marketing is to communicate a message through narrative. Storytelling marketing aims to make the viewer feel something.

Consequently, the message will inspire the person to act, such as buying your product, by causing them to feel something. Thus, the company’s implementation of the storytelling technique in the Middle East & African regional countries has offered a subtle approach to grab the audience's attention & engaging them on a much deeper level, hence creating brand trust & loyalty.

Market Segmentation

Based on Location:

• Highways/Bridges
• Roadside Mupis
• Roadside Lamp Posts
• Gas Stations
• Malls
• Stadiums
• Public Transport Stations
• Others (Supermarket/Hypermarket, Vehicle Based Advertising, etc.)

Of them all, the Highways/Bridges are anticipated to hold the major market share in the Middle East & Africa Digital Out-of-Home Advertising market. The rise in road travel & trade activities across the Middle East & African countries has boosted highway traffic to about 350,000 vehicles a day, across Cairo Ring Road, Sheikh Zayed Road, etc., with travelers searching for dining areas, gas stations, nearby hotels, etc. Lack of network connectivity in parts of highways often troubles visitors to find the nearest spots. Therefore, OOH providers across Middle East & Africa are increasingly deploying digital billboards, roadside lamps, mupis, etc., to market their products and services and increase their customer base.

Besides, the increasing deployment of gas toppers & LED mupis in gas stations across Qatar, Saudi Arabia, Egypt, the UAE, etc., to reach a large number of customers has increased the share of gas stations in the Middle East & Africa Digital Out-of-Home Advertising market during 2017-2021. Gas stations are abundant in populated areas. These are centrally located and enjoy the presence of thousands of foot and vehicle traffic daily.

Therefore, the rising deployment of DOOH screens and increasing traffic in gas stations due to a prominent rise in waiting time have derived the interest of many businesses to advertise their products at gas stations.

Based on End Users:

• Retail
• Real Estate
• Financial Services
• Government
• Automotive
• Others (Education, Healthcare, etc.)

Here, Retail gained the major market share of the DOOH Advertising market during the historical years. By installing digital screens in public places such as malls and offices, companies are able to target large audiences at once, as customers watch for billboards to stay up-to-date with the latest trends. Additionally, with the rise in inbound tourism, the demand for accommodation, entertainment, and dining areas would amplify in the country.

Therefore, the deployment of digital advertisements increases across transit stations relating to retail store locations & discounts, among others, to boost the sales of the retailers. Hence, with the growing need to make individuals aware of the business to penetrate the market, the segment's demand for digital OOH advertising is expected to rise in the coming years as well.

Regional Landscape

Geographically, the Middle East & Africa Digital Out-of-Home Advertising Market expands across:

• The UAE
• Saudi Arabia
• Oman
• Kuwait
• Egypt
• Morocco
• Others

Among all the countries, Saudi Arabia held a major share in the Middle East & Africa Digital Out-of-Home Advertising market in historical years. Out-of-home advertising is regarded as one of the most influential forms of brand promotion dedicated to consumers of varied ages & preferences. The market growth imputes to a notable rise in commercial advertising activities across the business to grab individuals' attention & promote brand awareness.

Furthermore, with the introduction of digitalized OOH advertisement services based on Geofencing, the country is expected to witness an increase in the deployment of GPS-based technology on billboards across malls, stations, and other locations to generate more customer leads. This would lead to a considerable increase in the demand for Digital out-of-home advertisement services in Saudi Arabia during 2023-2028.

Recent Developments by Leading Companies

• 2022: ELAN Media signed an agreement with Waterfront Family Destination for developing digital-out-of-home advertising for Place Vendôme Qatar
• 2021: Hypermedia & DigitAll, developed a fully customizable DOOH media experience for its more than 800 strategic partners & clients.

Market Dynamics:

Key Driver: Influx of Tourists in the GCC Region Aiding DOOH Advertising

The Gulf countries have been popular among tourists from the historical period, due to which the brands have been using digital out-of-home (DOOH) advertising to promote their services & brands. For instance:

• According to Qatar Tourism Authority, the number of travelers in Qatar increased by 5% from 2020 to 2021. Thus, stating that there is a positive surge in tourism in the country.

Additionally, DOOH advertising promotes tourist destinations, and the government has been promoting modernization & digitalization of all transportation systems to enhance tourist services. Digital screens have been installed across various platforms, such as airports & bus stations as part of this effort. Moreover, the government developed a fund of around USD4 billion in 2020 to develop the tourism industry. The promotion of a modern & exotic lifestyle in countries like Dubai & the UAE for tourism has been one of the major reasons for the demand for DOOH advertising equipped with the latest techniques like machine learning & artificial intelligence.

As a result, the demand for DOOH advertising is expected to escalate in the coming years due to the increasing tourism, government initiatives to promote tourism & transportation infrastructure, as well the promotion of luxurious lifestyles by the Gulf Countries.

Possible Restraint: Strict Regulations on Outdoor Advertising in MEA to Hamper the Market

The stringent regulations in the MEA region regarding billboards & signage have been a challenge for the digital OOH advertising industry as it restricts advertisement at certain places & of a certain type. Regulations related to the visual appearance of the region & obtaining licenses for the advisement is another challenge for retailers & other end-users, which is costly & time-consuming. Moreover, the ban on advertising some products like tobacco, smoking, etc., reduces the number of end-user brands.

Furthermore, in Qatar, outdoor advertising media should only use Arabic as their main language & any design or sign used in advertisements should never be similar to any official or traffic signs. Due to cultural taboos, Saudi Arabia has strict rules about what can & cannot be displayed in public. Faces & eyes, for example, are not permitted to be shown in outdoor advertising, and no reference to homosexuality is permitted. Hence, these Saudi Arabian regulations make it difficult for foreign companies to promote their original campaigns in the region.

Growth Opportunity: Growing Infrastructure & Smart City Construction Provides the Availability for More Ad Locations

Virtually every area of urban life has undergone significant alteration due to the continual investment & technological advancement to construct smart buildings & tourist attraction sites in the MENA region. The construction of these premises offers an opportunity for the expansion of the installation of the DOOH at various locations such as hotels, airports, resorts, religious places, etc. This has led to increased interaction, consumption, connection, and target customers for the brand owners, as these sites are visited by many local citizens & tourists in the country, such as the UAE, Saudi Arabia, Israel, South Africa, and others.

Moreover, the majority of innovations have been made possible by integrating different technologies, artificial intelligence, and analytics. Some OOH companies have already begun to use real-time data on visitors & citizens who visit smart city infrastructure, indicating the growing adoption of DOOH in the Middle East & Africa.

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