Dubai's Digital Billboards: Transforming Business Success
Dubai's Digital Billboards: The New Face of Business Success
Dubai's rapidly evolving skyline is not only famous for its breathtaking skyscrapers but also for its digital billboards that have a significant impact on the advertising market. Over recent years, the digitalization of outdoor (OOH) advertising has increased industry revenues eightfold, highlighting the growing demand and value offered to companies.
Why Are Outdoor Advertisements So Popular in Dubai?
Dubai’s busy roads, especially Sheikh Zayed Road, provide an ideal environment for advertisements, as the frequent traffic jams offer drivers extended exposure to the billboards. Companies recognize these advantages and are willing to invest heavily to have their names displayed in the city’s most frequented locations.
The cost of traditional static billboards ranges between AED700,000 and AED1 million per month, whereas digital versions incur even higher costs. For instance, the double-sided digital displays near The Mall of the Emirates, known as the 'triple crown', can cost up to AED2.5 million per month.
The Rise of Digital Advertising
Following the COVID-19 pandemic, outdoor advertising has undergone significant digital transformation worldwide. According to the CEO of BackLite Media, thanks to digitalization, revenues have grown eightfold compared to the previous static format. The company has six client locations but could double its capacity during peak times due to increased demand.
Mordor Intelligence forecasts that the total value of the UAE's outdoor advertising market will reach 158 million dollars in 2024, with digital advertisements holding a 29% share. Market growth is further boosted by the projected annual growth rate of 15-20%, while some companies, such as BackLite, experience annual growth rates of 30-40%.
Advantages of Digital Technology
Digital billboards offer numerous advantages over traditional static advertisements, including:
1. Flexibility: Multiple campaigns can run simultaneously, allowing advertisers to deliver more targeted and timed messages.
2. Interactivity: Some displays can monitor demographic characteristics of drivers, such as age and gender distribution, aiding in analysis.
3. Sustainability: Companies increasingly focus on sustainable energy sources and eco-friendly solutions.
Increasing Competition and the Future of the Industry
In Dubai, billboards hold a significant market share that exceeds the global average. While OOH advertisements account for 4% of the advertising market worldwide, in the UAE, this figure surpasses 20%. Outdoor advertisements benefit from being visible to everyone, regardless of what online content they consume.
Mergers and acquisitions within the sector also contribute to its development. Abu Dhabi’s Multiply Group acquired BackLite Media in 2023 and continues to explore further expansion opportunities on regional and international levels.
Conclusion
Dubai's digital billboards not only transform the cityscape but also create new opportunities for companies to reach their target audience. Although the advertising costs are higher due to new technologies, they offer exceptional advantages in terms of flexibility, efficiency, and return on investment. The future of the industry looks promising, and with ongoing digitalization, more companies will turn to outdoor advertising.
img_alt: Billboard advertising sunglasses on Sheikh Zayed Road, Dubai city.
