Digital Out-of-Home: The audience opportunity local media is missing

The U.S. DOOH market reached a record $9.1 billion in 2024, making up 34% of all out-of-home advertising. ... While your print revenue line keeps sliding, DOOH is growing at 10%+ annually through at least 2027. Are you participating in any of that growth? Or are you watching from the sidelines?”

Guy Tasaka, managing partner at Tasaka Digital and Editor & Publisher’s technology columnist

I’ve been watching a strange disconnect in our industry. While local media companies struggle to find new revenue streams, Digital Out-of-Home (DOOH) advertising is experiencing explosive growth — right in our backyards. Yet, many local media executives I talk with barely know this category exists.

Here's the thing: The U.S. DOOH market reached a record $9.1 billion in 2024, making up 34% of all out-of-home advertising. This isn’t slow, incremental growth. We’re talking double-digit annual increases that are expected to continue for years. While your print revenue line keeps sliding, DOOH is growing at 10%+ annually through at least 2027.

Are you participating in any of that growth? Or are you watching from the sidelines?

The market everyone’s missing

The data is compelling. According to PricewaterhouseCoopers’ annual media outlook, digital OOH revenues are projected to reach about $5.9 billion by 2028. By then, digital formats will likely comprise almost 50% of all OOH ad spend — up from roughly 45% today.

But if I'm being honest, numbers don’t tell the whole story. The real opportunity is about reconnecting with audiences you’ve lost.

Andy McKenna, whose company OnPremise Networks helps local media build retail TV networks, puts it bluntly: “If our business is going to have a long-term future, we’ve got to be talking to people under 40.” These younger audiences aren’t coming to your website, they’re not picking up your paper, and they probably don’t even know you exist.

But they’re still in your community, walking around with their phones, looking at screens.

What exactly is DOOH?

Digital Out-of-Home isn’t just one thing. It encompasses several categories:

• Digital Billboards: Roadside and highway digital displays (growing at about +4.6% annually)
• Transit DOOH: Screens in airports, transit hubs, taxis and rideshares (the fastest-growing segment at +6.7% annually)
• Street Furniture: Digital bus shelters, kiosks and information panels (growing at +6% annually)
• Retail/Place-Based: Screens in stores, restaurants and venues like gyms, salons, etc.

That last category — retail/place-based DOOH — is the sweet spot for local media. It’s growing fast and offers the lowest barrier to entry.

The ‘grandmother’s newspaper’ problem

Dana Peck, who spearheaded The Afro’s DOOH initiative, hit on exactly why this matters: “We did not do a good job of bridging the gap between the generations. So, people always viewed the Afro as their grandmother's newspaper ... But we’re not your grandmother’s newspaper anymore.”

The Afro expanded from 10 to 27 screens across their community, focusing on Black-owned and Black-friendly businesses. They targeted locations with long dwell times — beauty salons, barbershops, health clubs and even a funeral home.

That funeral home? Surprisingly, it’s their most popular location. “We get a lot of qualitative feedback from that,” Peck shared.

What The Afro discovered wasn’t just a new revenue stream. They found a way to be visible in their community again. “People are like, ‘What, The Afro is still around? Because we don’t see it,’” Peck explained. That visibility alone justifies the investment.

Getting started: The managed service approach

If you’re intrigued but concerned about implementation, a managed service partner can help. OnPremise Networks, for example, handles everything from identifying host locations to installing screens, managing content and even providing sales support.

“We’ll do a rollout plan,” McKenna explains. “We’ll take your market. We’ll give you a report, which is kind of a plan in a box. Here’s how many TVs you should have. Here are the locations. Here’s the audience size. Here are the rates you should sell it. Our clients sell local ads on the TVs and retain 100% of this revenue. They pay OnPremise Networks a monthly fee for content management, ad creation, TV maintenance, etc. The fee will vary based upon network size, set-up costs, etc.”

These networks deliver real audience growth. McKenna's clients see networks of 10-40 screens generating 25,000-150,000 monthly visitors and 100,000-500,000 impressions. “In some cases, it’s been as much as 40% incremental in the audience for their print publications,” he notes.

The DIY approach: What you need to know

You can start smaller if you’re not ready for a managed service. But be realistic about what’s involved:

• Hardware: Commercial-grade screens, mounting, connectivity
• Software: Content management system for scheduling and distribution
• Content: RSS feeds can automate some content, but video requires production.
• Sales: This is the biggest challenge. You need a dedicated effort.
• Maintenance: When screens go down, who's fixing them?

Dana Peck's advice after exploring both options: “The other option was less expensive, but we had to do more work. And we really don’t have the capacity to do it.”

The value beyond revenue

While DOOH can generate direct revenue, the strategic value might be even greater:

• Audience Extension: Reach people who don't come to your existing channels
• Brand Visibility: Physical presence in the community
• Modernization: Show you’re not “your grandmother’s newspaper.”
• First-Party Data: QR codes on screens can drive digital engagement.

Moving forward: Don’t wait

I’ve seen this pattern repeat throughout my career — publishers waiting to be “first to be second.” But the market is moving fast, and early movers have advantages.

Whether you partner with a managed service or start small on your own, the key is to start experimenting now. Your advertisers and audiences are both moving toward digital, visual experiences. If you’re not there to facilitate those connections, someone else will be.

As Andy McKenna puts it: “The strength of all these businesses, as far as I can see them is, you’ve got local vested leadership, you’ve got storytelling ability, you’ve got local ad sales. You’ve got trust.’

Those are powerful assets. The only question is whether you’ll leverage them in this growing space or watch from the sidelines as others capture the opportunity.

Guy Tasaka is a seasoned media professional with a 35-year track record of leading change in the industry. He has collaborated with renowned organizations such as Macworld Magazine, Ziff-Davis and The New York Times, where he honed his expertise in research, strategy, marketing and product management. As the former chief digital officer at Calkins Media, Guy was acknowledged as the Local Media Association's Innovator of the Year for his work in advancing OTT and digital video platforms for local news organizations. He is also the founder and managing partner of Tasaka Digital, specializing in helping media and technology companies navigate business transformations using his extensive experience and forward-thinking approach. Guy can be reached at guy@tasakadigital.com.