SINGAPORE: Out-of-home (OOH) advertising accounts for a significantly higher share of spending than the global average in several Asian markets, a region which also leads the way in terms of per capita spending on this medium.

A global study by Magna and Rapport, the outdoor agency of IPG Mediabrands, found that the sector generated a total of $28bn in ad revenues in 2016 and forecast a 4% rise to $30bn in 2017.

Growth is being almost entirely driven by digital OOH, which has seen unit numbers quadruple over the past couple of years and its share of total spending advance by one or two percentage points ever year for the past decade; a 14% share in 2016 is expected to reach 24% by 2021.

The share of global ad expenditure taken by out of home (OOH) is stable at 6%, the report said, but Campaign Asia-Pacific noted that it was almost three times higher in the Philippines where it attracted 15% of spending. Singapore (12%) and Thailand (9%) also exceeded the global average.

Japan ($4.7bn) and China ($3.1bn) were the second and third largest markets behind the US ($7.1bn), but Japan had the higher per-capita spend at $38 a year; Singapore was close behind on $36; the US, by contrast, spent $22.

The environment balance of the market is shifting away from billboards towards transit – where the majority of OOH inventory is found in countries like Japan and China – and street furniture, the study noted, although this varies widely depending on the particular market.

China, for example, earns 60% of OOH revenue from street furniture, despite this making up only a quarter of its inventory. Japan, one the other hand, earns most from billboards, which account for just over one fifth of inventory.

China is also is one of the top five global markets in terms of the penetration of digital, led by the transit segment.

Data sourced from Campaign Asia-Pacific; additional content by WARC staff