The evolution of digital out-of-home advertising in North America (2018-2023)

Over the past five years, Digital Out-of-Home (DOOH) advertising in North America has experienced dramatic growth. As both the technology and creative strategies evolve, DOOH has quickly moved from a niche sector within the Out-of-Home (OOH) industry to a dominant and increasingly important medium for advertisers. Let’s dive deeper into the significant developments that have taken place, the technologies shaping this evolution, and the challenges that still remain.

1. Growth in the number of digital billboards and DOOH screens

The most obvious indicator of DOOH’s rise is the significant increase in the number of digital billboards and screens. In the U.S., the number of digital billboards has more than doubled in the last five years. From an estimated 8,000 in 2018, the U.S. now boasts over 16,600 digital billboards in 2023. This shift is not just in roadside billboards but also in place-based DOOH screens found in venues like shopping malls, airports, transit hubs, and retail stores. These new screen networks are expanding the reach and flexibility of DOOH, offering advertisers more locations, formats, and contexts to engage their target audiences.

Figure 1: Estimated number of digital billboard faces in the U.S. (2018–2023). The count roughly doubled in five years, reaching ~16.6k by 2023​ riverjournalonline.com

This boom in digital signage has been accompanied by rapid expansion in Canada as well, with the overall digital screen inventory growing across major urban areas. Public transportation networks and retail brands in Canada are increasingly adopting digital billboards to reach commuters and shoppers, mirroring trends in the U.S.

2. DOOH advertising spend trends and top industry verticals

The financial growth of DOOH mirrors the rise in digital signage inventory. In the U.S., DOOH advertising spend has grown from $2.3–2.6 billion in 2018–2019 to approximately $2.94 billion in 2023, and it’s continuing to rise . While 2020 saw a dip in spending due to the pandemic, the sector quickly rebounded in 2021 and 2022, with annual growth rates exceeding 20% YoY . By 2023, DOOH accounted for roughly 30-35% of the total OOH ad spend in the U.S., and its share of the market is projected to continue growing.

Figure 2: Estimated U.S. spending on digital out-of-home advertising, 2018–2023. After a pandemic dip in 2020, DOOH spend has grown to an estimated ~$2.94B in 2023​ statista.com

Certain verticals are driving this growth. Retail, food and beverage, entertainment, and automotive are the top spenders in the DOOH space. For example, retailers are using digital screens to promote new products, local deals, or drive foot traffic to brick-and-mortar stores. Fast-food chains like Dunkin' Donuts leverage DOOH to adjust content in real-time based on the time of day, showing breakfast specials in the morning and refreshing beverages in the afternoon. Similarly, local services and amusements (casinos, movie theaters, events, etc.) are major players, using digital billboards to engage local audiences with timely promotions and offers.

The top 10 product industries account for 81% of total OOH spend) source: oaaa.org

The automotive sector also continues to utilize DOOH, although not at the same scale as retail and food brands. For automotive brands, digital billboards provide an excellent opportunity for model launches, promotions, and test drive invites in key locations, such as high-traffic highways or near dealerships.

3. The growing volume of creative output

As digital inventory has expanded, the need for diverse and targeted DOOH creative output has skyrocketed. The volume of creative content produced for DOOH campaigns has increased substantially over the last five years. What once might have been a few static ads per campaign, is now a highly dynamic, multi-format production process. Advertisers are required to create numerous versions of the same ad tailored to different locations, time slots, and even weather conditions. This increase in creative output has resulted in a greater need for efficiency and scalability in production workflows.

To meet the growing demands of DOOH creative, brands and creative agencies are turning to dynamic creative optimization tools. Platforms like Viewst enable the automatic creation and optimization of digital ads, ensuring that the right message is displayed to the right audience at the right time. By automating parts of the creative production process, Viewst helps brands scale and adapt their DOOH campaigns across multiple screens, locations, and formats without sacrificing quality or engagement.

As a result, brands now push out a much larger volume of creative content on an ongoing basis, with ads often updated on a daily or even hourly basis. This trend is especially prominent in high-traffic urban centers where ad relevance and context are paramount to driving consumer engagement.

4. Technologies and tools for DOOH creative production

The increased complexity of DOOH campaigns has given rise to a variety of tools that help creative teams keep pace with the demand for high-quality, dynamic, and contextually relevant content. Let’s explore some of the key technologies and platforms shaping the creative production of DOOH ads.

Dynamic Creative Platforms (DCO)

Dynamic Creative Optimization (DCO) tools have become essential for creating real-time, context-aware ads. Viewst is a key player in this space, enabling creative teams to produce dynamic content that adapts based on real-time data like weather, sports scores, traffic patterns, and even local events. For example, an outdoor apparel brand can showcase different products depending on whether it's raining or sunny in a particular region. This level of personalization enhances the relevance and impact of the ad.

Content Management Systems (CMS)

DOOH campaigns are typically managed via a Content Management System (CMS), which helps operators schedule, monitor, and update digital content across multiple screens. Platforms like Broadsign, Scala, and Vistar Media provide robust CMS solutions for both media owners and agencies. These systems can handle multiple types of content (video, static images, interactive media), but as screen inventories grow, agencies face the challenge of managing multiple CMS systems for various networks, often resulting in inefficiencies and complexity.

AI-Driven design tools

AI-based design platforms like Viewst are helping to streamline creative workflows by generating multiple variations of an ad based on a central concept. AI can automatically resize creatives to fit various screen formats, create localized versions of the same ad, and adjust design elements based on the context or location. For instance, Viewst’s AI tools allow teams to generate dynamic, engaging content without the need for constant manual intervention, which speeds up production time and reduces human error.

Ad servers and programmatic platforms

To effectively deliver DOOH ads, many advertisers are turning to programmatic platforms that enable real-time buying and ad delivery across multiple networks. Vistar Media, Place Exchange, and Broadsign Reach allow advertisers to automate the buying process for DOOH inventory. This approach not only streamlines the procurement of ad space but also enables dynamic ad delivery based on triggers (weather, location, etc.) and audience segmentation. In fact, programmatic DOOH is expected to be a key growth driver in the coming years as more advertisers shift away from traditional direct buys toward automated, data-driven campaigns.

5. Challenges in DOOH creative production

While the growth of DOOH presents numerous opportunities, creative teams face several ongoing challenges that hinder efficiency and effectiveness. These challenges stem from both the inherent complexity of the medium and the technical limitations of current platforms.

File format fragmentation

One of the most significant hurdles in DOOH creative production is the fragmentation of file formats. DOOH campaigns must be tailored to each individual screen’s size, resolution, and technical specifications. Whether it’s a high-resolution highway billboard or a vertical transit screen, the lack of standardized formats requires creative teams to produce numerous versions of the same ad. This complexity can be time-consuming and costly, especially for agencies managing large-scale campaigns across different networks.

Resolution and ad spec inconsistencies

The variation in resolution and ad specs across digital billboards and other displays further complicates the production process. In addition to format differences, each media owner or network may have their own requirements for things like file size, video codecs, and animation length. This means creative teams must be diligent about adjusting their assets to meet specific standards, often across multiple screens.

Limitations of dynamic content

While dynamic creative is one of DOOH’s most powerful features, there are still limitations on how dynamic content can be deployed. For example, certain digital billboards, particularly those on highways, are restricted by regulations that limit the amount of animation or video that can be shown. Similarly, not all networks support real-time data feeds or advanced programmatic triggers, which means that dynamic creative capabilities can be restricted depending on the network’s infrastructure. As a result, creative teams may need to simplify dynamic concepts or make do with less interactive content on certain screens.

Platform fragmentation and integration issues

Another challenge is the fragmentation of platforms across the DOOH ecosystem. Different media owners may use different CMS platforms, ad servers, and programmatic platforms, making it difficult to execute a unified campaign across multiple networks. Integration issues arise when creative assets need to be delivered seamlessly to various networks, and any discrepancies in platform compatibility can result in errors or delays. This lack of interoperability among platforms often leads to inefficiencies in managing large campaigns.

6. Future of DOOH: opportunities for innovation

Despite these challenges, the rapid growth of DOOH presents exciting opportunities for innovation. As the industry matures, there is a growing demand for solutions that streamline creative production and campaign management, and Viewst is at the forefront of this transformation.

By leveraging AI-driven platforms like Viewst, advertisers can automate much of the creative process, reducing the time and cost of production. AI-based tools can handle tasks such as resizing ads for different formats, creating localized content, and even automating dynamic content generation based on real-time data feeds. As these tools become more advanced, creative teams will be able to focus on high-level strategy and creative direction, while the technology takes care of the tedious, repetitive tasks.

Moreover, programmatic DOOH will continue to evolve, enabling more real-time, data-driven campaigns that respond to shifting consumer behaviors. By connecting DOOH networks to audience measurement systems and improving targeting capabilities, advertisers will be able to deliver more personalized and engaging content. The ability to track impressions, conversions, and engagement will further increase the appeal of DOOH for advertisers, who are increasingly seeking measurable results across all their media channels.

In addition, standardization of file formats, screen specs, and creative workflows will become a priority. Industry bodies like the IAB and OAAA are already working toward creating uniform standards that will simplify creative production and ensure compatibility across all DOOH networks. As these standards take hold, creative teams will be able to produce campaigns more efficiently and with greater consistency.

7. Conclusion. The future of DOOH

DOOH has seen a dramatic evolution over the past five years, and the growth trajectory is set to continue. The expansion of digital billboards and place-based screens has been accompanied by increased ad spend and growing demand for dynamic, context-driven content. However, creative teams face significant challenges in producing and managing content across a fragmented platform landscape, inconsistent specs, and limitations on dynamic content.

Technology plays a central role in overcoming these challenges. Platforms like Viewst are already revolutionizing how creatives are produced, scaled, and optimized in real time. As the industry continues to mature, the demand for automation, standardization, and data-driven insights will only increase. For brands and agencies looking to scale their DOOH campaigns efficiently and effectively, the key lies in adopting advanced creative technologies that streamline production and maximize engagement.

In short, DOOH is on the verge of becoming a cornerstone of omnichannel marketing strategies, and those who invest in the right technologies now will be better positioned to lead the way as the medium continues to evolve.