China OOH And DOOH Market

China OOH And DOOH Market Analysis

The China OOH And DOOH Market is expected to register a CAGR of 5.01% during the forecast period.

• China is a vast and diverse market for advertisers. Over the past few years, outdoor and internet advertising has gained significant traction in the country. This growth is driven primarily by rapid technological advancements, an increasingly tech-savvy population, and the significant presence of major local OOH and DOOH companies in the Chinese market.
• One of the key trends in China's DOOH advertising market is the swift proliferation of digital signage networks in its urban landscapes. As urbanization surges and more individuals commute, billboards and digital screens are strategically positioned in high-traffic spots like transportation hubs, shopping centers, and business districts. This strategic placement enables advertisers to effectively target a broad and diverse audience, amplifying the impact of their campaigns.
• Moreover, the rising trend of merging mobile technology with out-of-home advertising is boosting the market's growth. Given the heavy reliance of Chinese consumers on smartphones, advertisers are capitalizing on this by integrating QR codes and interactive elements into their digital ads. This trend facilitates easy consumer engagement and grants them access to additional information or exclusive offers via mobile devices.
• Additionally, the nation's swift urbanization and the burgeoning middle class have spurred heightened consumer spending and surging demand for goods and services. This, in turn, has forced both local and global advertisers to turn to OOH and DOOH advertising as a prime avenue to tap into this expanding consumer base. Moreover, technological strides and infrastructural enhancements have made digital out-of-home advertising more accessible and cost-efficient. With the widespread adoption of high-speed internet and the maturation of digital signage networks, advertisers now find it easier to roll out and manage their campaigns in the country.
• Furthermore, the declining costs of digital screens and billboards have made them increasingly budget-friendly for advertisers, further propelling the market's growth. The Chinese DOOH advertising market is flourishing, driven by consumer preferences for dynamic and interactive ads, the urban expansion of digital signage networks, the fusion with mobile tech, and the nation's distinct market dynamics.

China OOH And DOOH Market Trends

The Billboards Segment is Expected to Hold a Major Share in the Market

• Billboard advertising has consistently proven effective in bringing brand exposure, especially in high-traffic, dense locations. Moreover, the country has one of the most efficient highway systems in its land transport sector. Consequently, leveraging DOOH advertising on these highways is the paramount media choice for brand owners and businesses.
• Further, DOOH advertising on billboards is witnessing a surge in popularity as businesses are intensifying their efforts to captivate potential customers. Concurrently, market vendors are strategically placing large-format LED digital billboards on the nation's busiest roads. These developments are poised to shape the trajectory of OOH and DOOH advertising on billboards in China during the forecast period.
• Moreover, the growing urbanization in China is further creating significant growth in demand for billboards for advertising in China and gaining more traction from consumers. For instance, according to the data from the National Bureau of Statistics of China, in 2023, approximately 66.2% of the total population in China lived in cities. The urbanization rate has increased steadily in China over the past few years.
• Billboard advertising has long been a cornerstone of DOOH campaigns in China. The country has seen a notable uptick in the sheer number of billboards and the digitization of traditional ones. Moreover, market vendors' focus on technological advancements, spanning billboard size, specifications, and screen technology, sets the stage for further growth in the Chinese OOH and DOOH market.

The Retail and Consumer Goods Segment is Expected to Hold the Largest Share in the Market

• The Chinese retail and consumer goods segment is experiencing notable growth, fueling the demand for out-of-home advertising. Retailers and e-commerce firms are actively expanding their market reach, bolstering their market share and revenue by using OOH and DOOH advertising, thus positively impacting the growth of the market.
• For instance, according to the data from the National Bureau of Statistics of China, in May 2024, the retail trade revenue of consumer goods in China increased by 3.7% compared to the same period in 2023. Similarly, according to the data, in November 2023, the retail trade revenue of consumer goods in China increased by 10.1% compared to the same period in the last year. Such factors indicate the country's growing retail and consumer goods sector, creating opportunities for OOH and DOOH advertising.
• Furthermore, DOOH advertising is a crucial tool for marketers within the retail and consumer goods sector. China's retail landscape has notably shifted its approach to consumer engagement. Central to this shift is retailers' adoption of digital signage screens, which are bolstering their retail media portfolios.
• Furthermore, retail and consumer goods firms in the nation prioritize expanding their digital OOH inventory. This transition to digital displays in retail outlets, transport hubs, and malls presents brands with new avenues to engage consumers in high-traffic areas. Owing to such developments, the retail and consumer goods sector is analyzed to expand the growth of the Chinese OOH and DOOH market during the forecast period.

China OOH And DOOH Industry Overview

The Chinese OOH and DOOH market is semi-consolidated, with some of the major market vendors holding a significant share of the market. Local companies primarily dominate China's OOH and DOOH advertising landscape. Partnership, acquisition, and merger activities are shaping the future of the Chinese OOH and DOOH market. Major players in the market include ChinaDOOH, Focus Media Holding Ltd, Hakuhodo Inc., and JCDecaux Group.

• May 2024: Vistar Media, a global provider of technology solutions for OOH media, unveiled a strategic collaboration with ChinaDOOH, a prominent player in the Chinese OOH marketing sector. The partnership aims to extend Vistar's programmatic advertising reach into Mainland China. This move will empower media owners with programmatic DOOH advertising, creating new demand channels for buyers and partners within Vistar's expansive global network.

China OOH And DOOH Market Leaders

China OOH And DOOH Market News

• April 2024: VIOOH, a prominent global digital out-of-home (DOOH) supply-side platform, solidified its position in mainland China by unveiling its second programmatic media owner partnership. Teaming up with Beijing Top Result Metro Advertising Co. Ltd, VIOOH introduced real-time trading for local programmatic DOOH (prDOOH) inventory. This move expands VIOOH's prDOOH offerings to encompass the metro audiences of China's two largest metro systems: Shanghai and Beijing.
• March 2024: Hivestack by Perion, a programmatic DOOH supply-side platform, announced its expansion into the Chinese DOOH market through a partnership with Way.io. Under the agreement, Way.io customers, which boast names like Alibaba, JD, NANFU, and VIP.com, can launch campaigns in China and internationally using Hivestack by Perion's SSP. This collaboration with Way.io will bolster Hivestack's presence in China and open doors to a broader array of global digital DOOH properties, tapping into the vast potential of China's digital landscape.