Market Insights Advertising & Media Advertising Out-of-Home Advertising

Digital Out-of-Home Advertising - China

China

Ad spending in the Digital Out-of-Home Advertising market in China is forecasted to reach US$5.12bn in 2024.
The expected annual growth rate (CAGR 2024-2029) is 6.52%, leading to a projected market volume of US$7.02bn by 2029.
With a projected market volume of US$5.12bn in 2024, the majority of ad spending is anticipated to be generated United States.
The average ad spending per capita in the Digital Out-of-Home Advertising market is projected to be US$3.57 in 2024.
China's rapidly growing digital out-of-home advertising market is fueled by technological innovation and the country's vast consumer base.

Key regions: Europe, United States, United Kingdom, Germany, India

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Analyst Opinion

The Digital Out-of-Home Advertising market in China is experiencing significant growth and development.

Customer preferences: Chinese consumers are increasingly drawn to digital out-of-home advertising due to its dynamic and interactive nature. Digital screens and billboards offer eye-catching visuals and engaging content that capture the attention of passersby. Additionally, the ability to display targeted and personalized advertisements based on location, time, and demographics appeals to both advertisers and consumers.

Trends in the market: One of the key trends in the digital out-of-home advertising market in China is the rapid expansion of digital signage networks in urban areas. With the growing urban population and the increasing number of people commuting, digital screens and billboards are strategically placed in high-traffic locations such as shopping malls, transportation hubs, and commercial districts. This allows advertisers to reach a large and diverse audience, maximizing the effectiveness of their campaigns. Another trend is the integration of mobile technology with digital out-of-home advertising. Chinese consumers are heavily reliant on their smartphones, and advertisers are leveraging this by incorporating QR codes and interactive features into their digital ads. This allows consumers to easily engage with the advertisement and access additional information or promotional offers through their mobile devices.

Local special circumstances: China's vast and diverse market presents unique challenges and opportunities for digital out-of-home advertising. The sheer size of the country and its population necessitate a localized approach to advertising campaigns. Advertisers need to tailor their content and messaging to different regions, taking into account cultural nuances and preferences. Additionally, China's strict regulations on outdoor advertising require advertisers to obtain permits and comply with certain guidelines, ensuring that advertisements are appropriate and do not disrupt public order.

Underlying macroeconomic factors: Several macroeconomic factors contribute to the growth of the digital out-of-home advertising market in China. The country's rapid urbanization and rising middle class have led to increased consumer spending and a higher demand for products and services. This has attracted both domestic and international advertisers to invest in digital out-of-home advertising as a way to reach this expanding consumer base. Furthermore, advancements in technology and infrastructure have made digital out-of-home advertising more accessible and cost-effective. The widespread adoption of high-speed internet and the development of digital signage networks have made it easier for advertisers to deploy and manage their campaigns. Additionally, the decreasing costs of digital screens and billboards have made them more affordable for advertisers, further driving the growth of the market. In conclusion, the Digital Out-of-Home Advertising market in China is thriving due to customer preferences for dynamic and interactive advertising, the expansion of digital signage networks in urban areas, the integration of mobile technology, and the country's unique market characteristics. These trends, combined with underlying macroeconomic factors such as urbanization and technological advancements, are propelling the growth and development of the market in China.

Methodology

Data coverage:

Data encompasses enterprises (B2B). Figures are based on digital out-of-home advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers internet-connected out-of-home advertisements such as digital billboards, digital street furniture, digital transit and transportation, and digital place-based media.

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. We use annual financial reports of the market-leading companies and industry associations, third-party reports, and survey results from our primary research (e.g., Consumer Insights) to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as GDP, population, urban population, and internet infrastructure.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market. For instance, the S-curve function is well suited to forecast digital products due to the non-linear growth of technology adoption, whereas exponential trend smoothing (ETS) is more suited for projecting steady growth in traditional advertising markets.

Additional notes:

Data is modeled using current exchange rates. The impacts of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice per year in case market dynamics change.