The Future of Out-of-Home Advertising in Dubai, UAE
December 25, 2024
Recent stats predicted that out-of-home (OOH) advertising sector in the UAE will account for more than $160 million in 2025.
This shows that out-of-home advertising is everywhere. Take a walk from your apartment, you will notice signage ads from your elevator to the entrance of your apartment complex.
Not just that, you’ll encounter eye-catchy hoardings and billboards on the main roads and streets that make the surroundings appealing.
These appealing ads can be spotted everywhere during your trips to supermarkets and malls. Well, we can surely say that out-of-home advertising is omnipresent in the UAE with large formats designed to captivate and leave a lasting impression.
Let’s discuss in detail how out-of-home advertising is evolving and what we can expect in the near future.
The Evolution of OOH Advertising
In the United Arab Emirates, traditional out-of-home advertising methods have undergone evolution over time. OOH advertising in the Middle East continues to hold a significant part of media focus.
It finds itself at a juncture between methods and modern technological progress. The emergence of technologies and shifts in consumer behavior have led to digital transformation.
Digital displays and billboards have the ability to showcase advertisements simultaneously which offers advertisers flexibility in creating targeted campaigns.
These can be customized based on factors such as the time of day, location or even current happenings in the surroundings.
The Past: OOH Advertising
Traditional billboards, wall banners, and vehicle advertisements from the past still hold the ability to reach diverse audiences. However, assessing their effectiveness can pose a challenge.
When it comes to OOH advertising methods like billboards and hoardings, analyzing factors such as population demographics, geographical location and visual engagement only gives rough estimates of the success of an advertisement or marketing campaign.
The Present: The Rise of Digital Out-of-Home Advertising (DOOH)
Digital out-of-home (DOOH) advertising is driving growth in the OOH advertising sector. Digital billboards and transit ads are set to comprise more than 33% of total ad spending by 2025.
By the year 2050, 68% of the population is projected to reside in urban cities in Dubai. That’s why the city is poised to lead in developing fully functional smart urban areas.
DOOH advertising must evolve consistently to keep pace with this shift in urban living environments.
Read more: What is Digital Out-of-Home (DOOH) Advertising
Key Trends Shaping the Future of OOH Advertising
In a country such as the UAE that prioritizes technology and creativity, OOH advertising holds promise for growth.
Metropolitan areas like Dubai and Abu Dhabi are exploring cutting-edge advertising techniques and immersive experiences that harmonize with city life.
Real estate developers have already embraced AR-powered billboards allowing prospective buyers to visualize properties in 3D.
Let’s discuss some popular trends that are shaping the future of OOH advertising:
– Programmatic Advertising in OOH
Looking ahead to 2025 shows that programmatic avenues are anticipated to represent a value of over $1 billion in OOH ad expenses.
As mentioned earlier, UAE has experienced a growth in OOH advertising recently leading to a demand for data integration and analysis tools.
By utilizing audience measurement and analytics that focus on impression-based metrics, brands are now able to assess the effectiveness of their ads.
They can do this across key performance indicators (KPIs) impacting both the upper and lower parts of the sales funnel.
Although the area is slightly lagging behind progress in this aspect, implementing it will enable marketers to have an understanding of their OOH/DOOH campaign tactics and results across various locations instead of relying on separate reports from each publisher for analysis.
– Integration with Mobile and Digital Channels
The merging of OOH advertising with digital channels is not just a phase that will fade away.
It has evolved into a tool for marketers to leverage effectively. By utilizing technologies like NFC (Near Field Communication), QR codes and Bluetooth beacons with OOH ads, brands can enable interaction with smartphones.
This offers users a cohesive offline and online engagement experience. This integrated approach opens up call-to-action possibilities such as app downloads, access to content or facilitating purchases for the audience.
In addition to advertising methods like billboards and commercials, OOH campaigns can use social media platforms to inspire users to create their content, share it with others and engage in real time conversations. This will in turn increase the overall reach and effectiveness of the campaigns.
– Sustainability and Eco-Friendly OOH Campaigns
Today, sustainability is not just an initiative but a solution. Advertisers are showing a growing inclination toward adopting practices such as using LED lights, energy-efficient displays and solar-powered setups to lessen the environmental impact of their campaigns.
Moreover, they are using eco-friendly materials and production methods to ensure the correct utilization of resources.
These sustainable OOH efforts not only contribute to environment preservation but also boost brand reputation. This appeals to consumers who value social responsibility.
Moreover, adopting eco-friendly methods helps save natural resources and promotes environmental friendliness as a sustainable choice.
– The Integration of Augmented Reality (AR) and Virtual Reality (VR)
AR technology enables customers to engage with advertisements by interacting with them in ways such as trying out different scenarios or examining product functionalities live on screen.
– Stability with a Digital Boost
With the rise of tech, the stability of traditional out-of-home formats remains vital and valued.
Despite advancements in advertising platforms and strategies projected to dominate the marketing scene by 2025, it is estimated that 2/3rd of out-of-home advertising spending will still be allocated to conventional billboards and stationary formats.
These traditional forms continue to serve the purpose of promoting brand recognition through visibility initiatives. They become more potent when integrated with digital features like QR codes or social media promotions.
This effectively bridges the gap between physical advertising mediums and online consumer interactions.
– Tech-Based Smart Signages
Digital signages now feature smart visuals to capture customers’ interest by utilizing real-time data and incorporating interactive elements like touchscreens along with the Internet-of-Things (IoT).
Customers can conveniently browse a variety of products on digital screens in malls. Smart screens are improving user experiences and customer interactions by creating more captivating campaigns and enhancing brand engagement with customers.
– 3D Billboards
Incorporating a 3D holographic LED display on intelligent screens throughout urban cities is essential. These screens can include interactive features such as sensors and touch responsive buttons that activate audio or video upon contact.
Also, facial recognition can be used for personalized content customization. This establishes consistent procedures and tools for measurement. In addition, it implements retargeting tactics to effectively manage DOOH advertising.
– 5G Connectivity
The rise of 5G networks has revolutionized advertising as we know it today.
With its fast speed and reliable connection, outdoor signs now have the ability to effortlessly broadcast high-quality content such as videos and live streams.
This opens up a plethora of opportunities for updates and live coverage of events making outdoor advertising more engaging and modern than before.
That’s not all…
Challenges for OOH Advertising in Dubai and Middle East
The outdoor advertising industry in the Middle East is encountering challenges that hinder its potential for growth.
– There isn’t an authority overseeing the industry to address challenges encountered by vendors. This sometimes results in unhealthy competition.
– Landlords continue to raise rents despite decreased demand and limited advertising budgets while also facing challenges due to the imbalance in location, supply and demand.
– OOHH cannot give ROI for campaigns and real-time measurements leading advertisers to switch to digital platforms because of budget constraints and the absence of sophisticated analytical tools.
– When companies switch to platforms, they often miss out on the chance for customers to remember and recognize their brand, focusing more on getting value for their investment rather than just making an impression.
– The adoption of technologies in OOH advertising has been relatively gradual in the MENA region lagging behind standards in technological innovation and programmatic development.
FAQs
What is the future of the advertising industry?
In the coming years, we anticipate a rise in the number of advertisers utilizing AI tools to streamline the creation of advertisements. The search intent for “AI in advertising” is showing massive growth trends. So, we can say that the future of advertising is artificial intelligence.
What is the future of digital out-of-home advertising?
According to recent reports, DOOH is projected to dominate 75% of out-of-home advertising by 2027. AI and AR advancements will lead to the development of digital advertisement formats such as holograms that could turn any space into a potential advertising platform.
How big is the out-of-home advertising market?
The global OOH advertising market had a value of $26 billion in 2023. It is expected to increase from $28 billion in 2025 to $61 billion by 2031 at a growth rate of 9%. This sector of advertising could potentially influence how people feel about a brand through exposure to OOH ads.
What is the impact of out-of-home advertising?
The impact of OOH advertising is big. It allows advertisers to connect with customers in environments that match their ads effectively and prompt action when people are out and about. The benefits include:
– Accuracy
– High ROI
– Data-first Approach
– Flexibility
How can small businesses leverage OOH advertising in Dubai?
Small businesses can benefit from outdoor advertising. For example, they can display ads along the various roads (freeways, highways), bridges as well as the large wall banners strategically placed around the iconic skyline.
Dubai’s population is large and growing rapidly each year, presenting chances for brands to connect with a variety of people in busy advertising locations.
Merging out-of-home campaigns with digital strategies is a good approach for small businesses. They can maximize their reach due to the city’s top-notch technological infrastructure.
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