European World Out of Home Forum - what was discussed in Milan?

Leaders of the outdoor advertising industry from around the world gathered at the European Forum of the World Out of Home Organization (WOO), which took place on November 5-6, 2024, at the Melia Milano hotel in Milan, to discuss the current state of the sector, challenges, and development directions. WOO brings together 250 members from 125 countries across 5 continents, making it the most important organization operating in the outdoor advertising industry. The event was opened by Tom Goddard, President of WOO. He focused on key aspects affecting the development of the OOH (Out of Home) market on a global scale.
 

Key Areas of OOH Development

Tom Goddard outlined seven main pillars that the WOO organization considers crucial for sector growth. These are: measurement and data analysis, sustainable development and DEI (diversity, equity, inclusion), adtech development, creativity, promoting best practices and common standards. Supporting industry associations and creating collaboration platforms is also important. Each of these areas is crucial for the further development of the sector. It responds to the changing needs and challenges facing the outdoor advertising industry.
 

Global OOH Spending in 2023

WOO also presented the results of its global OOH spending survey for 2023. Total outdoor advertising spending reached $41.9 billion, representing 5.2% of global media spending. The largest shares of the OOH market were in the APAC regions (Asia and Pacific - $20.2 billion), Europe ($10.3 billion), and North America ($9.4 billion), while LATAM (Latin America) and Africa markets accounted for $1.2 and $0.7 billion respectively. In Europe, the largest OOH markets include the UK, France, and Germany, while China and the United States lead globally.

Growing Share of Digital Advertising

According to WOO forecasts, by the end of 2024, digital advertising (DOOH) will account for 37% of total OOH spending, reaching a value of $16.7 billion. The European OOH market will have the highest DOOH share, accounting for 40% of total spending in this segment. The APAC regions (38%) and North America (34%) follow. This phenomenon aligns with the global trend of digitization and automation driving the development of the OOH sector. Goddard emphasized that digitalization is a key growth factor - examples include markets such as the UK, where DOOH spending represents as much as 65% of total OOH spending.

The Role of Traditional Outdoor Advertising

Despite the growing importance of DOOH, Goddard also emphasized the role of traditional outdoor advertising. Traditional advertising has unique advantages. It reaches 90% of adults within a week, making it an effective tool in wide-reach campaigns.

Moreover, the cost of traditional advertising is only about 20% of the CPM (Cost Per Mille) of digital advertising. This makes it more affordable and attractive for many brands.
 

Industry Challenges and the Importance of Standardization

The main challenges for the OOH industry are the need for standardization of performance measurement as well as approaches to sustainable development and advertising technology. Goddard spoke about the necessity of introducing uniform measurement protocols, standardizing formats and terminology, and developing a common approach to environmental issues. He highlighted WOO initiatives such as the sustainability repository. This is intended to help organization members minimize their carbon footprint and introduce innovative, environmentally friendly solutions. WOO also works with local authorities to support OOH development in a way that is friendly to local communities.
 

The Future of the OOH Sector: AI and Retail Media

Goddard included generative artificial intelligence and the dynamic development of the retail media sector among the factors that could have a significant impact on the future development of the OOH industry. It is predicted that in 2024, retail media will account for one-fifth of global digital advertising spending. This opens up new opportunities for OOH. Artificial intelligence, in turn, can influence the automation of processes and personalization of advertisements, which is a huge step forward for the entire sector.

Tom Goddard's 10 Commandments for Sector Development

At the end of his presentation, Goddard presented ten key principles that he believes should guide the OOH industry in the coming years. Among them, he mentioned the digitalization of advertising media, strengthening the position of traditional outdoor advertising, market consolidation, expanding measurement across all formats, and automating the sales process. He also called for more effective cooperation within industry associations, controlling carbon footprint, harnessing the potential of artificial intelligence and retail media, and... having fun. His message concluded with a quote from Michelangelo:

"The greatest danger is not that we aim too high and miss, but that we aim too low and reach our target."

Summary

Tom Goddard's presentation at the European WOO Forum in Milan was an inspiring reminder of the potential of outdoor advertising and the challenges it faces. Thanks to global reach and increasing digitalization, the OOH sector is dynamically responding to market trends. Introducing standards, investing in new technologies, international cooperation, and caring for sustainable development can contribute to further growth in this industry. WOO, as a leader and quality guardian in the OOH sector, is a key player. It supports its members and the entire sector in pursuing innovation and sustainable development.

In upcoming articles, I will try to discuss the most interesting presentations from this very inspiring conference that was rich in information about the latest trends in the OOH industry