Lower LED Costs and Digital Growth Boost OOH Market Share
Luís Felipe Loli Argello analyzes outdoor advertising's growing slice of the ad pie and the goal of reaching a 20% market share.
The expansion of digital screens and falling LED costs have turned out-of-home media into the third-largest advertising investment channel in Brazil. Discussing the OOH market, Luís Felipe Loli Argello breaks down the factors driving the medium's growth and projections for the coming years.
Out-of-home media has cemented its position as the third-largest investment channel across media plans in Brazil. In a conversation with Bruno Gimenes on Marketing - The Podcast, Luís Felipe Loli Argello, CCO of We OOH, explained that this recent surge was fueled by the accelerated digitization of urban spaces and the decline of traditional formats such as print. The full episode covers other areas of outdoor advertising, but the expansion of digital inventory stands out as the primary catalyst for change.
In the video above, Loli describes the technical evolution of equipment and how barriers to entry have fallen for operators. "We've been seeing a digitization boom since 2020, 2021—lots of dynamic inventory on the streets, lots of new and affordable technology," he says. He points out that cost reductions facilitated project rollouts: "If you look at an LED panel eight years ago, it cost three times what an LED panel costs today."
With the gradual replacement of static displays by digital screens and the shrinking footprint of print outlets, OOH's share of total advertising spend has expanded. "I think the real explosion is happening right now this year; we are already at 14% of the medium's market share, so to speak," notes Argello, who forecasts that this upward trend will continue: "I'm excited—I won't say 100% certain, but enthusiastic—that we'll hit 20% within the next two years."
Breaking down budget allocations, Argello contrasts the overall market with government advertising spending, where outdoor media still has significant room to grow. According to him, the historical split in that specific segment stands at around 50% for television, 15% for radio, and 10% for OOH, competing with digital and online portals. For the broader market, Argello expects OOH to close out the year near 15% and reach 20% over the next 24 months.
