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In a talk at the World Out of Home Europe Forum in Milan, Christian Schmalzl warned against neglecting the potential of OOH billboards
Christian Schmalzl, chief executive officer of German outdoor advertising company Ströer Media, has called on the out-of-home (OOH) industry to better integrate digital and static billboards, stressing the continued impact of classic OOH advertising in comparison to digital out-of-home (DOOH).
Schmalzl was speaking at the World Out of Home Europe Forum in Milan last week, in a talk entitled ‘All Digital: All Good?’.
The event, which took place on November 4th and was run by the World Out of Home Organisation, brought together leaders from across the OOH sector to discuss industry trends and the future of OOH.
In the talk, Schmalzl asserted that digitisation is driving the growth of OOH advertising, but also warned against neglecting the potential of classic static billboards.
Outlining his suggestions to the industry as a whole, he mentioned that converting classic sites to digital screens “needs to go hand in hand” with leveraging new opportunities for creative and impactful solutions for advertisers within the sphere of classic billboards.
“While as most of the current momentum is digital, it’s crucial to not overlook the importance and unique selling points of classic OOH.”
While classic billboards are seen as a more reliable and cost-effective solution in some circumstances, the wider industry is moving increasingly towards digital billboards as a more flexible, modern, and interactive solution for OOH campaigns.
UK-based outdoor advertising operator, 75Media, announced earlier this year that it doubled its portfolio of roadside billboards by buying 595 new classic 48-sheet roadside billboards. However, the company is nevertheless considering switching more sites to digital screens.
Speaking at the time of the announcement, operations director of 75Media Alex Simpson commented: “We will analyse and review all classic sites in our estate to determine whether they would be better digitised, as part of the ongoing strategy and development of our business.”
Schmalzl also spoke at the forum about a promising increase in the market share of the advertising industry for OOH campaigns.
During the talk, Schmalzl said: “Over the last few years, the growth of OOH advertising has out-performed general advertising market growth and especially since COVID, the market share of OOH is growing even faster. The latest public numbers of Ströer as well as Nielsen statistics demonstrate the acceleration of the OOH momentum in Germany.”
Nielsen is a data collection company specialising in audience insights, data, and analytics across a wide range of business sectors. It operates in over 100 countries and employs approximately 15,000 people worldwide.
Continuing his speech, Schmalzl said: “In Germany, OOH is getting very close to a Nielsen-measured market share of 10%. Nevertheless, it’s still an early phase of that structural shift towards OOH.
“The OOH industry needs to keep an eye on a couple of aspects to further strengthen its relationship with all stakeholders and business partners.”
While Schmalzl was specifically speaking about the German OOH market, similar positive market trends have been seen in the UK and the wider market.
According to Outsmart, a trade body for the OOH industry, UK OOH revenues in the first quarter of 2024 were £292m, a 16.4% increase from the same period in 2023. Within that period, DOOH revenue grew 22.8%, while classic OOH grew 6.2%.
