Revenues for billboard operators have grown as much as eightfold in the past few years as digitalisation has given out-of-home (OOH) advertising a notable boost.

Sometimes seen as a bellwether for the local economy, billboards get plenty of viewing time in places such as Dubai during morning and evening traffic rush hours when cars are bumper to bumper.

For that reason, having your company’s name on them can be expensive.

Advertising on the large static billboards along the side of Dubai’s Sheikh Zayed Road can cost anywhere between AED700,000 ($190,000) and AED1 million a month.

Digital billboards can command even more. James Bicknell, CEO of BackLite Media and Viola Outdoor UAE, says its three double-sided digital displays near The Mall of the Emirates, called The Triple Crown, could fetch anywhere between AED1.8 million and AED2.5 million for a month.

Bicknell says that after the Covid-19 pandemic, the industry globally went into a rapid period of digitalisation, which has been hugely beneficial to bottom lines.

“Since digitalising, we have multiplied revenue by a factor of eight compared to when they were static previously,” Bicknell tells AGBI.

“Demand massively outstrips supply. We have six clients that we can put on there. In the busy months, we could probably double that if we wanted to.”

Spending in the UAE OOH advertising market is forecast by Mordor Intelligence in Hyderabad, India, to reach $158 million this year, with digital accounting for 29 percent of that. Mordor says the market will grow to $183 million by 2029, when digital is expected to have a market share of 35 percent.

Bicknell says the market is growing at 15 to 20 percent a year, though BackLite is seeing growth of between 30 and 40 percent a year.
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At a time when mobile and online are dominating advertising spend, Bicknell says “fractured news media” gives billboards a distinct advantage, because they are viewed by everyone.

Normally, around the world, outdoor advertising has a market share of 4 percent, but Bicknell says: “Here it has over 20, because of how media is consumed in this region.”

Bicknell believes advertisers are favouring OOH and social media advertising over online, radio and traditional forms of media.

He predicts that in 15 years’ time, OOH and social media advertising “will probably be the only two mediums that are still around”

Social media can significantly amplify outdoor ads in a way that is making advertisers sit up and take notice, industry observers say.

Austyn Allison, Middle East advertising expert and an AGBI columnist, says that done right, a planned OOH campaign reaches a new audience with the help of social media.

He says the Adidas Liquid Billboard, which featured what Adidas called “the world’s first swimmable billboard”, at Jumeirah Beach, went viral with the help of social media.

“It got liked and shared and discussed around the world, and that’s the same for any OOH work – it can now reach beyond line of sight,” Allison says.

Higher attention span

Marketing Marina had a 3D holographic display at the F1 event, which Ruolahti says received 40 percent higher attention span compared with a normal screen.

When advertisers are spending in high volumes, return on investment (ROI) can be important. New technology allows companies to track who is looking at the ads – male or female, young or old – anonymously and give footfall stats.

The technology also extends to people driving in cars, Bicknell says, though only 5 percent of customers have requested any sort of feedback.

“At the moment, customers are far more interested in sustainability – where we get our energy from, how we get rid of our panels. Those are the questions that they’re being asked more than the ROI,” he says.

The industry has seen several mergers and acquisitions. Multiply Group of Abu Dhabi acquired BackLite Media in February last year, and one of the remits is to create one holding company owning a house of brands, Bicknell says.

“We are currently in negotiations with various businesses, both regionally and internationally, to expand our portfolio,” he says, although he declines to say which companies.

The outlook for the industry is strong, Bicknell says, especially for those switching to digital.

“What’s interesting about outdoor is that there are very few industries that have in-built growth,” he says.

“If you have a heavy static network, that you can get permission to digitalise without doing very much, you can multiply your revenue by four, five or six times.”

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