The global smart advertising market size was valued at USD 655.1 million in 2018 and is expected to register a CAGR of 19.4% from 2019 to 2025. Smart advertising is rapidly gaining popularity and is emerging as one of the most preferred forms of advertising for enterprises across multiple industry verticals such as automotive, gaming, entertainment, consumer goods, and electronics. Compared to other conventional forms of advertising, smart advertising enables marketers to effectively target audiences based on multiple attributes related to interests, age, and location, among others, thereby increasing user engagement.
Technological advancements in areas such as artificial intelligence (AI), machine learning (ML), sensor-fusion, and big data analytics have enabled Digital Out-of-Home (DOOH) companies to identify potential customers and deliver customized advertising content. These technologies have also enabled DOOH companies to analyze large volumes of customer data to assess their response to advertisement campaigns. The rapidly expanding wireless internet connectivity infrastructure and the availability of video content management systems globally are also playing a pivotal role in increasing the adoption of smart advertising by the corporate sector.
Smart advertising combines three technologies: immersive media, device motion, and AI, which work together to help companies initiate and improve their customer engagement and help advertisers to drive consumers to the company’s special promotion page or an online store, among other things. Smart advertisement dynamically reacts to its environment by receiving and sending data over an information network and plays a significant role in inciting consumer interest and increasing the conversion rate for the company. With increased awareness about such benefits of smart advertising, its adoption is likely to rise soon.
The market is also anticipated to witness significant growth over the forecast period owing to the increasing focus of advertisers on adopting a hyper-targeted advertising model to deliver personalized content to targeted consumer segments. With the standardization of digital display networks over the forecast period, the advertising industry is expected to shift to the programmatic media buying and Real-Time Bidding (RTB) model. Furthermore, these advancements are also anticipated to propel the development of ad networks, ad exchanges, Demand-Side Platform (DSP), and Supply-Side Platform (SSP) to enable greater automation and efficiency in the entire smart advertising market.
However, the stringent government regulations regarding data privacy and protection, such as the General Data Protection Regulation (GDPR) in Europe, are anticipated to have a significant impact on the collection, storage, and usage of customer data for delivering personalized advertisement content. As the majority of smart digital displays are installed at public locations, DOOH media companies have to ensure that digital displays do not interfere or impact the performance of critical radio communication systems at airports, stations, and highways. For instance, smart digital display manufacturers and DOOH media companies are required to comply with the stringent electromagnetic interference and emission standards specified by the Federal Communications Commission (FCC) in the U.S.
Based on the component, the market for smart advertising has been segmented into hardware, software, and services. The hardware segment dominated the market in 2018. The segment is also anticipated to emerge as the fastest-growing segment over the forecast period owing to the increased installation of outdoor digital billboards as well as indoor digital posters and interactive kiosk networks by DOOH media companies worldwide.
To improve the delivery of customized advertising content, DOOH media companies are focusing on integrating high definition cameras and advanced sensors such as smoke, vibration, and proximity sensors with their conventional digital displays. These hardware systems, backed by technologies such as Artificial Intelligence (AI) and Machine Learning (ML), play a major role in the identification and classification of customers based on multiple attributes such as age, gender, mood, and location. Hence, these factors play a key role in driving the growth of the hardware segment.
Based on the product, the market for smart advertising has been segmented into the interactive kiosk, digital poster, digital billboard, and others. The digital billboard segment dominated the market in 2018 owing to the increased focus of OOH media companies on replacing conventional billboards with smart digital billboards that have wireless connectivity and a variety of sensors. These smart billboards are also a major component of several smart city initiatives and offer a substantial revenue generation capability for the local municipalities.
However, the digital poster segment is anticipated to emerge as the fastest-growing segment over the forecast period. There has been an increasing deployment of digital posters in commercial and private locations such as business centers, community centers, and shopping malls. Furthermore, the increasing adoption of digital posters in transit advertising such as city metro and buses and for street-side advertising is also anticipated to propel the market growth over the next six years.
Based on end-use, the market for smart advertising has been segmented into corporate, government, education, food & beverage, and others. The corporate segment dominated the market in 2018 and is also anticipated to emerge as the fastest-growing segment over the forecast period. The segment growth can be attributed to the increasing number of creative and innovative advertising campaigns being executed by multi-national companies and large-scale enterprises with a significant global or regional presence. Smart advertising is anticipated to play a key role in enabling corporations in increasing their reach and consumer engagement at major public destinations and also in improving their consumer interactions.
Furthermore, DOOH network operators are focusing on the integration of advanced electronic and information and communication technologies such as AI, ML, sensors, and cameras in conventional digital displays. These technologies have enabled media agencies and advertisers to unleash their creativeness and create unique and engaging advertisement campaigns to boost customer awareness and drive conversions. As a result, the corporate sector is now a leading adopter of smart advertising to inform the target consumers regarding new offerings, provide information regarding new offers and discounts, and to effectively communicate and build brand awareness in the market.
The North American regional market for smart advertising dominated the global market in 2018. The presence of several leading DOOH media companies, high advertising spending by companies, and the availability of high-speed wireless internet infrastructure in the region are the key growth drivers of the regional market. Furthermore, the early adoption of emerging technologies for customer engagement and business growth are some of the other major factors driving the increased adoption of smart advertising in the North American regional market.
The Asia Pacific regional smart advertising market is projected to emerge as the fastest-growing regional market over the forecast period. This can be attributed to the increased focus of multinational companies on creative advertising to establish a strong presence in high-potential and emerging economies such as China and India. Furthermore, the continuous rise in investment in the rollout of the high-speed internet infrastructure, rising number of smart city initiatives, and the presence of major electronic component manufacturers in the region are also expected to drive the deployment of digital displays and other smart advertising products in the region.
Smart Advertising Market Share Insights
Key players operating in the market include Lamar Advertising Company, OUTFRONT Media Inc., CIVIQ Smartscapes, Clear Channel Outdoor Holdings, Inc., Exterion Media (UK) Limited, JCDecaux Group, Include Ltd., Intersection, IKE Smart City, Changing Environments Inc., and Captivate. These market players are working on developing innovative solutions to improve the adoption of DOOH and smart advertising by corporates worldwide. For instance, in 2018, JCDecaux Group launched the Viewed Impressions for Out Of Home (VIOOH), a global platform to enable programmatic trading of DOOH advertising. VIOOH will also enable clients to personalize the advertising content for specific locations based on geolocation, time, day, promotions, and events using a custom-built Content Management System (CMS).
Various other companies are also focusing on increasing their digital display network to offer smart advertising services. For instance, JCDecaux acquired APN Outdoor, an OOH media company in Australia. The acquisition enabled the former to expand its operations in the high-potential Australian market. Clear Channel Outdoor Holdings Inc. is a specialized outdoor advertising company majorly focusing on digital advertisements on streets and airports. The company has a wide global business network consisting of approximately 14,000 digital displays spread across 30 countries. Similarly, Exterion Media (UK) Limited has a strong presence in European countries including the Netherlands, U.K., France, Spain, and Ireland. The company also offers research & data services for analyzing the effectiveness of advertising campaigns.
The base year for estimation
Actual estimates/Historical data
2016 - 2017
2019 - 2025
Revenue in USD Million, and CAGR from 2019 to 2025
North America, Europe, Asia Pacific, Latin America, and MEA
U.S., Canada, U.K., Germany, India, Japan, China, and Brazil
Revenue forecast, company ranking, competitive landscape, growth factors, and trends
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Segments Covered in the Report
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2025. For this study, Grand View Research has segmented the global smart advertising market report based on component, product, end-use, and region:
Component Outlook (Revenue, USD Million, 2016 - 2025)
Product Outlook (Revenue, USD Million, 2016 - 2025)
End-Use Outlook (Revenue, USD Million, 2016 - 2025)
Food & Beverage
Regional Outlook (Revenue, USD Million, 2016 - 2025)
Middle East & Africa