Global Engineering Services Market

The engineering services market consists of sale of engineering services. Engineering services’ companies apply physical laws and principles of engineering in the design, development, and utilization of machines, materials, instruments, structures, processes, and systems. Engineering services include technical application of engineering in product designing, innovations and others in industries such as building construction, mining, power and energy, transportation, manufacturing and others. The global engineering services market is expected to decline from $955.7 billion in 2019 to $945.2 billion in 2020 at a compound annual growth rate (CAGR) of -1.2%. The decline is mainly due to economic slowdown across countries owing to the COVID-19 outbreak and the measures to contain it. The market is then expected to recover and grow at a CAGR of 6% from 2021 and reach $1101.2 billion in 2023. The engineering services market is expected to benefit from steady economic growth in developed and developing countries. The International Monetary Fund (IMF) predicts that the global real GDP growth will be 3.7% over 2019 and 2020, and 3.6% from 2021 to 2023. This trend will be mainly driven by regions of Asia and Africa. According to the report, Asia will represent 66% of the global middle-class population by 2030. For instance, the Indian IT-BPM industry grew by 7.7% in FY 2017, with software products and engineering services reaching US$ 25 billion. Going forward, the Asia Pacific and Middle Eastern region are expected to be the fastest growing markets in the engineering services, design, animation and graphic designing industries. Developing countries such as India and China have started attracting foreign investments to improve their infrastructure. This was mainly due to increase in internet penetration, growth in population and increasing economic activity. Lack of quality control and safety concerns of engineering firms may hinder the engineering services market growth. Defects or failures in construction activities result in high costs. These minor defects result in re-construction to make the facility operations impaired. Increased costs and delays are the results of ineffective internal controls and safety measures which hampers the end-to-end quality. For instance, QuEST, an engineering services company is facing difficulties caused due to lack of understanding, problems in execution process and inconsistency across various business units. Companies in the industry are incurring high maintenance and budgeting costs to develop new and advanced methods to combat issues of safety and control. The increasing popularity and adoption of the Internet of Things (IoT) across the globe is the latest trend in the engineering services market. Internet of things (IoT) is a system of inter-related devices enabling transmission of data over a wide range of network. IoT enables continuous innovations in real-time data analytics, design and develop products and help businesses grow at a faster pace. Engineering service providers are increasingly using industrial IoT to improve and optimize their production process with better energy usage, resource allocation, and assets management. For Instance, PureSoftware, an engineering service company, have successfully integrated IOT to engineering services and built a steady IOT platform to improve accuracy and speed to retrieve data. In 2017, India has 43% market share in the global IoT market followed by Western Europe and North America with 27% and 23% respectively. The Construction Design and Management Regulation also known as CDM Regulations/CDM 2015, came into force from 6 April 2015. These are the regulations governing the engineering service providers with respect to construction projects of all sizes and types. This CDM regulation 2015 was a replaced Construction (Design and Management) Regulation 2007, aiming to improve the overall health, safety and welfare of the workers and professionals involved in construction. This regulation specifies the general requirement, states safety norms and minimum welfare facilities required at the construction sites. In 2018, Schneider Electric acquired Larsen & Toubro electrical & automation (E&A) division for $1.9 billion. This acquisition would strengthen and innovate Schneider`s low voltage and industrial automation products business and create an efficient and enhanced Energy Management and Industrial Automation company. L&T Electrical & Automation offers electricity distribution and control solutions, services and products for various sectors such as industries, utilities, buildings, residences, marine and agriculture. L&T was established in 1946 and is headquartered in Mumbai, India.

The HR advisory market consists of the sales of HR advisory services by entities (organizations, sole traders and partnerships) that provide advice on human capital matters and/or offerings revolving around the HR function. HR advisory services are generally used by two types of clients – those aiming to improve their HR function by redesigning HR processes and those undergoing transformations such as mergers and acquisitions to ensure the new human capital is trained. Only goods and services traded between entities or sold to end consumers are included. The global HR advisory services market is expected to increase from $85.85 billion in 2019 to $86.82 billion in 2020 at a compound annual growth rate (CAGR) of 1.12%. The slow growth rate is mainly due to the COVID-19 outbreak that has led to restrictive containment measures involving social distancing, remote working, and the closure of industries and other commercial activities resulting in operational challenges. The market is then expected to recover and reach $106.75 billion in 2023 at a CAGR of 7.13%. North America was the largest region in the HR advisory services market in 2019. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The use of data-driven tools and analytics for employee engagement is a major driver contributing to the growth of the HR advisory services market. Employee engagement refers to a workplace approach that results in appropriate conditions for all the employees of the company to give their best performance every day by abiding by the values of the company with an enhanced feeling of their well-being. Professionals in human resource management are relying on data analytics and AI for key decisions. For instance, Genpact, an American professional services company, analyzes employee data, segments and categorizes it to find patterns such as at what age, salary range, or experience level, employees leave the organization. Predictive analytics is used to identify employees who are at high risk of voluntary attrition and interventions are designed to re-engage them. Further advances in data-driven tools and analytics are expected to drive the HR advisory service market. Cybersecurity threats for the human resource department is a major factor hindering the growth of the HR advisory services market. A cybersecurity breach is costly and equally destructive for all organizations - big or small. According to Heimdal Security, cyber-crimes costs the global economy $100 billion every year and $17 million in the USA alone. HR professionals maintain extremely private and sensitive information such as social security number, date of birth, address, and bank details. In addition to this, according to the Forrester Analytics Global Business Technographics® Security Survey 2019, 52% of enterprise network security decision-makers experienced at least one data breach in the last 12 months, and 44% of breaches were caused by employees who intentionally or not, exposed sensitive data to data thieves or hackers. Companies rely on their HR department and do not outsource HR services because there is a risk of losing important employee data in availing external HR services, thereby restraining the growth of the HR advisory services market over the coming years. Organizations across the globe are focusing on creating a digital workplace using cloud services and AI, which is gaining significant popularity in the HR advisory market. The digital workplace is a modern concept using digital transformation to align technology to achieve organizational goals with operational efficiency. Cloud services and AI are important parts of the digital workplace helping in removing geographic barriers for improved collaboration, increased productivity and employee engagement, improved decision making, and also in optimizing costs. For instance, in 2018, DBS bank created Jobs Intelligence Maestro (JIM), a virtual AI-powered bot to conduct candidate screening. JIM helped in reducing screening time to 8 minutes from 32 minutes and improved the completion rate of total applications for a job to 97% from 85%. The increasing use of AI and cloud services will bring significant changes in HR advisory services in the coming years. In March 2020, Aon Plc, a London-based global provider of risk management services, insurance and reinsurance brokerage, and human resource consulting and outsourcing, acquired Willis Towers Watson (WTW), the UK-based risk management, insurance brokerage, and advisory company, for $30 billion. The acquisition will strengthen Aon Plc`s expertise in cybersecurity, intellectual property, climate change, and health solutions. The combined entity would work together in risk, retirement, and health businesses. Willis Towers Watson (WTW) is a London-based company that helps clients around the world in 140 countries in global advisory, HR consulting and software, broking, and other solutions.

The advertising agencies market consists of the sales of advertising services and related goods by entities (organizations, sole traders and partnerships) that plan, develop, create and manage advertisement and promotional activities in newspapers, radio, television, websites and social media sites. The advertising agencies market is segmented into TV, digital, print, OOH (Out-of-Home Advertising), radio and other advertising services. Only goods and services traded between entities or sold to end consumers are included. The global advertising agencies market is expected to decline from $346.9 billion in 2019 to $346.5 billion in 2020 at a compound annual growth rate (CAGR) of -0.12%. The decline is mainly due to the COVID-19 outbreak that has led to restrictive containment measures involving social distancing, remote working, and the closure of industries and other commercial activities resulting in operational challenges. The entire supply chain has been disrupted, impacting the market negatively. The market is then expected to recover and reach $418.3 billion in 2023 at a CAGR of 6.48%. North America was the largest region in the advertising agencies market in 2019. Asia-Pacific is expected to be the fastest-growing region in the forecast period. An increase in advertisement spending across industries is expected to drive the demand for the advertising agencies market. Video and mobile ads are major contributors to the increase in ad investment. Digital advertising has recently surpassed total TV ad spending. For instance, according to the Global Digital Ad Trends report published by PubMatic, a digital advertising technology company, the US digital ad spend in 2019 was around $129.3 billion, constituting 54.2% of total spending ($238.56 billion). This shows that the US digital ad spending surpassed traditional media spending. Consumer Cellular, an American postpaid mobile network operator, spent under $100 million on advertising in digital, print, and national TV in the year 2019. The retail industry has the highest percentage of total spend on advertising. Therefore, the rise in advertisement spending is predicted to fuel the demand for the advertising agencies market. The high cost of hiring an advertising agency, especially during tough economic times, is limiting the growth of the advertising agencies market. For instance, in smaller regions or markets, the cost to hire an advertising agency could vary anywhere from $95 to $225 per hour depending on the service and the skill of the person supplying that service. The average cost for digital marketing services ranges from $2,500 to $12,000 per month for small-to-midsized businesses (SMBs). Thus, such high costs associated with hiring an advertising agency is likely to hinder the growth of the market over the forecast period. The launch of artificial intelligence (AI) in advertising is gaining popularity in the advertising agencies market. Major players operating in the industry are continuously focused on introducing innovations and technologies to better serve the needs of consumers. For instance, as of May 2019, according to a survey, 47% of advertisers are currently using artificial intelligence for audience targeting. It has been reported that several companies are focusing their AI capacities to streamline their sales process, sorting out “hot” leads from “cold” prospects, cutting sales lead considerably, and improving sales productivity. In July 2018, Dentsu Inc., a company that offers marketing, event planning, event promotion, advertising planning, and other services, announced the acquisition of 100% stakes in Global Mind for an undisclosed amount. With the acquisition of Global Mind, Dentsu Inc`s global network brand iProspect will align with Global Mind. The merger will add significant scale to iProspect Argentina as well as contribute key capabilities to the company’s operations in Latin American markets. Global Mind is a full-service, cross-channel agency contributing to online and offline creative ad production, media planning and buying, digital paid search, display, social media management, SEO, programmatic and data & analytical services.

The public opinion and election polling market consists of the sales of public opinion and election polling services and related goods by entities that are engaged in systematically gathering, recording, tabulating, and presenting public opinion data. Public opinion and election polling services include elections opinion polls and elections exit polls. The global public opinion and election polling market is expected to decline from $7.36 billion in 2019 to $6.98 billion in 2020 at a compound annual growth rate (CAGR) of -5.17%. The decline is mainly due to the COVID-19 outbreak that has led to restrictive containment measures involving social distancing, remote working, and the closure of industries and other commercial activities resulting in operational challenges. The market is then expected to recover and reach $7.16 billion in 2023 at a CAGR of 0.89%. Europe was the largest region in the public opinion and election polling market, followed by North America in 2019. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The increasing requirement for public opinion is anticipated to drive the demand for public opinion and election polling market. Public opinions and polls act as a measuring tool to find out what people think about a particular product, person, activity, company, or any other areas that are relevant to medical research and innovation. These polls help countries and companies to decide on a new leader, release a product, make changes to the organizational structure of activities, or make other important strategic decisions. The requirement for public opinion for making decisions in government and business activities aids in the growth of the market. Erroneous polling results are expected to hinder public opinion and the electoral polling market. This is due to various reasons such as error due to sampling, negative response rate, response bias where answers given by respondents do not reflect their true beliefs, coverage issues and questions being posed by the surveyors. Also, the opinion of the public may change with time and other influences that result in a different outcome. According to the press release of the Hindustan Times on the exit polls and the actual results of elections in India published in May 2019, the margins of the exit polls and the actual elections were different for the last four times the elections were conducted, between 1998 and 2014. This unpredictable situation makes it difficult for companies and countries to reach a specific endpoint, which impacts the public opinion and election polling market’s growth. Innovations and the launch of new techniques through partnerships and collaborations are gaining popularity in the public opinion and election polling market. Major companies operating in the industry and government organizations are introducing new technologies to make the surveys and voting more reliable, accessible, genuine, including the variability, and eliminating the errors. For instance, in December 2019, Luminoso, a text analytics company, has launched QuickLearn 2.0 that reduces bias in AI-powered text analysis and uncovers more accurate and easy-to-understand insights from concepts in text-based data. In February 2020, the Election Commission of India and IIT-M collaborated to develop a new voting technology, to allow electors to vote from distant cities without going to the designated polling stations of their respective electoral districts. In October 2019, Slingshot Insights Inc., a US-based expert network and market research firm has acquired Truth On Call, Inc. for an undisclosed amount. This acquisition has added surveys as an important tool for the market research framework of Slingshot Insights Inc., which furthers expands its network. Truth On Call, Inc. is a US-based healthcare survey and market research firm.

The billboard and outdoor advertising market consists of the sales of billboard and outdoor advertising services and related goods by entities (organizations, sole traders and partnerships) that create and design public display advertising campaign materials, such as printed, painted, or electronic displays and/or place such displays on indoor or outdoor billboards and panels, or on or within transit vehicles or facilities, shopping malls, retail (in-store) displays, and other display structures or sites. Only goods and services traded between entities or sold to end consumers are included. The global billboard and outdoor advertising market is expected to grow from $65.24 billion in 2019 to $65.71 billion in 2020 at a compound annual growth rate (CAGR) of 0.72%. The slowed growth is mainly due to the COVID-19 outbreak that has led to restrictive containment measures involving social distancing, remote working, and the closure of industries and other commercial activities resulting in operational challenges. The entire supply chain has been disrupted, impacting the market negatively. The market is then expected to recover and reach $81.35 billion in 2023 at a CAGR of 7.37%. North America was the largest region in the billboard and outdoor advertising market in 2019. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The increase in digital out of home (DOOH) advertising is expected to contribute to the growth of the billboard and outdoor advertising market. Out of home (OOH) advertising refers to advertising outside of the home and includes billboards, bus shelters, wallscapes, and posters. DOOH is an extension of the OOH and includes outdoor signage, digital billboards and television screens. In contrast to traditional billboards that show static images all the time, digital boards display more live images and can run multiple advertisements and, hence, attract more consumers. DOOH witnessed a 10% rise in OOH advertising worldwide, which was close to $16.75 billion in the year 2019. According to Vistar Media, global digital advertisements have grown from 160,000 units to 300,000 units in less than five years. DOOH in recent times have seen lucrative growth and is expected to grow more in the coming years because of its engaging and interactive nature. Several regulatory standards employed by governments across the globe for advertising at particular locations or spaces are a key factor hampering the growth of the global billboard and outdoor advertising market. In the UK, advertisement of alcohol, e-cigarettes, sweets and fast food is prohibited within 200 meters of a school. It is also not allowed to do any political advertising on bus shelters. The Committee of Advertising Practice (CAP) looks after non-broadcast advertising in the UK and has extensive regulations covering areas such as environmental claims, gambling and lotteries, alcohol sales and selling of e-cigarettes to mention a few. Many states of the US are adopting lighting standards to prevent glare from digital billboards to ensure it does not affect the vision of people passing by it. Puerto Rico and the other 12 states have made it mandatory for digital billboards to adjust the brightness to the surrounding environment and light. The digital billboards come up with light sensors that adjust brightness at different times of the day. These regulatory standards are for the betterment of society but are proving to be hindrances for the advertising business. The expansion of programmatic media buying is a growing trend in the field of digital out of home (DOOH) advertising. Programmatic advertising refers to the use of automated technology for buying advertising space in contrast to traditional methods of digital advertising. This approach uses data insights and algorithms to display the right advertisements to the right person at the right place and price. About 82% of viewers were able to recall a DOOH advertisement that they saw over a month ago. The brands have now expanded their in-house programmatic media buying capabilities. For instance, Vodafone, a global telecom brand, entered in digital media buying in 2018 and estimated a budget of almost $500 million for global media planning and buying. Mobile location data and visual sensors are expected to trigger programmatic DOOH. Historical and real-time audience demographics and movements around DOOH displays are obtained from mobile data service providers. Platforms like Quividi and Admobilize use camera sensors to detect audience demographics and their engagement. Both of these data are combined to target the appropriate audience for the right advertising. In December 2018, Lamar Advertising, an outdoor advertising company in the US and Canada, acquired Fairway Outdoor Advertisings billboard operations for $419 million in a few US states including North Carolina, South Carolina, Georgia and Wisconsin. The acquisition will add 8,500 billboards along with 135 digital displays in Lamar’s account. This deal was expected to add $70 million in total revenue to Lamar Advertising in 2019. Moreover, the acquisition is expected to help Lamar set its foot strong in the market with 5% anticipated sales growth. Fairway Outdoor Advertising is an American outdoor advertising firm engaged in providing billboards, digital displays, and posters.

The biotechnology services market consists of the sales of biotechnology services and related goods by entities (organizations, sole traders and partnerships) that engage in conducting research and experimental development in biotechnology. Only goods and services traded between entities or sold to end consumers are included. The global biotechnology services market is expected to increase from $142.92 billion in 2019 to $150.06 billion in 2020 at a compound annual growth rate (CAGR) of 5.0%. The growth is mainly due to the COVID-19 outbreak that has led to an increase in research and development activities. The market is expected to grow further and reach $210.96 billion in 2023 at a CAGR of 12.03%. Biotechnology services is the second-largest sector after biopharmaceuticals which is anticipated to emerge significantly due to increasing research and development activities. North America was the largest region in the biotechnology services market in 2019. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The increasing pervasiveness of conditions like hepatitis B, diabetes and cancer is driving the research in biotechnology. Biotechnology uses research tools from biology and chemistry to study the genetic material of bacteria and viruses to check the disease-producing agent. Oncology research is most prominent among biopharma companies. Stem cell treatment, using a monoclonal antibody for therapy and genome sequencing is progressing in medical applications. The sales of global biotech drugs are expected to reach $284 billion in 2020. According to Data-Driven Investor, all sectors of biotech companies together spend 20% of their budget on research and development, accounting for nearly $750 billion in 2018. Therefore, the rising pervasiveness of diseases and huge expenses on R&D is predicted to contribute to the growth of the biotechnology services market. The risk related to genetic data is anticipated to limit the growth of the biotechnology services market. The biotechnological approach of transferring specially created genes for modification in characteristics to create genetically modified organisms (GMOs) has always been considered a threat to human and environmental health. According to the report of the World Conservation Union, there are numerous environmental risks likely to occur by the use of GMOs, which include interbreeding, antibiotic resistance, impact on the ecosystem, creation of new or worse viruses, competition with natural species, unpredictable and unintended effects and ethical concerns. The World Health Organization (WHO) has also set guidelines for manufacturers of GMO food. The National Bioengineered Food Disclosure Standard has been implemented in the USA from January 2020 making it mandatory to label all foods containing genetically engineered items to be labeled as bioengineered. Thus, the risk associated with genetically modified items is negatively impacting the growth of the biotechnology services market. Collaborations and partnerships between industry players are a growing trend in the field of biotech services. In Dec 2019, Interpace Pharma, a subsidiary of Interpace Biosciences, dealing in pharmacogenomics testing, genotyping and biorepository services, collaborated with Genecast Biotechnology Co. Ltd for jointly developing, promoting, and offering translational studies and clinical trial solutions to the industry. This partnership is expected to benefit pharmaceutical and biotech companies to accelerate their biomarker-driven drug development and precision medicine. Genecast is a Chinese company providing a wide range of diagnostic services to pharmaceutical and biotech companies. In May 2018, Illumina, a US-based biotechnology company serving in research, clinical and applied markets, acquired Edico Genome for an undisclosed amount. The acquisition is expected to reduce sequencing data acquisition. Edico Genome`s Bio-IT platform DRAGEN uses field-programmable gate array (FPGA) technology with software algorithms and helps in reducing data footprint and time for results. The DRAGEN platform complements Illumina`s sequencing portfolio and helps the customer in reducing investment in IT infrastructure and improve overall efficiency. Edico Genome is an American company dealing in the field of genomics.

The direct mail advertising market consists of the sales of direct mail advertising services and related goods by entities (organizations, sole traders and partnerships) that create and manage advertisement and promotional activities by mail. The content and mode of advertisement can be customized according to the target audience. Only goods and services traded between entities or sold to end consumers are included. The global direct mail advertising market is expected to grow from $66.84 billion in 2019 to $67.34 billion in 2020 at a compound annual growth rate (CAGR) of 0.75%. The direct mail volume was down in the first quarter, however, the COVID-19 outbreak favored this market as some of the biggest brands have adopted direct mail advertising during the lockdown period. The pandemic has led to restrictive containment measures involving social distancing, remote working, and the closure of industries and other commercial activities. With consumers staying at home over the past few months due to the pandemic, direct mail has become a marketing strategy to reach the consumers at home. The market is then expected to reach $70.66 billion in 2023 at a CAGR of 1.62%. The Asia-Pacific was the largest region in the direct mail advertising market in 2019. It is expected to remain as the largest region in the forecast period. The benefits associated with direct mail advertising contributed to the growth of the direct mail advertising market. The major benefits associated with direct mail advertising include high read rate, response rate, and personalization. The tangible benefits that direct mail offers along with the facility that personal and special messages can be delivered to the target customers, builds trust in customers. Also, direct mail tends to have a longer shelf life than email or digital marketing. According to the Postary (Postcard Marketing & Direct Mail Platform), the average response rate of the direct mail is around 2.7% - 4.4%, while the email has around 0.6%, which is comparatively very low. The average open rate varies between 57.5% – 85%, and the average return on investment is $4.09 (£3.22) for $1.27 (£1) spent on direct mail. Such benefits from direct mail advertising drive the direct mail advertising market. The high cost of direct mail advertising is expected to limit the growth of the direct mail advertising market. For instance, for a small business operating on a small marketing budget, a direct mail advertising campaign can result in high costs. Direct mailing costs include the price of the postage, professional printing, design cost, and costs for hiring services of a professional copywriter to create a persuasive message. In addition to this constraint, direct mail is considered junk mail by the consumers. According to a study, more than 90 percent of direct mails are tossed away without opening or reading. Therefore, to reach the customer with mail, the mail sent should be creative and to create such mail, the cost increases. The high cost of direct mail advertising hinders the direct mail advertising market. Direct mail advertisers are using augmented reality to modernize direct mail advertising. Augmented reality is a huge engaging medium and it creates more opportunities that can make direct mails interactive. For instance, EE, a mobile network operator, used Blippar technology augmented reality to enhance its paper bills so that customers can scan inserts with the Blippar`s app to know more about the services provided by EE, and also watch exclusive videos in augmented reality. Augmented reality-enabled bills captured an average of 3 minutes of dwell time per customer and awareness of EE’s product range.

The OOH (Out-of-home) advertising market consists of the sales of advertising services and related goods by entities (organizations, sole traders and partnerships) that plan, develop, create and manage advertisement and promotional activities at out-of-home advertisement facilities. Only goods and services traded between entities or sold to end consumers are included. The global OOH (Out-of-home) advertising market is expected to grow from $25.29 billion in 2019 to $25.49 billion in 2020 at a compound annual growth rate (CAGR) of 0.8%. The slowed growth is mainly due to the COVID-19 outbreak that has led to restrictive containment measures involving social distancing, remote working, and the closure of industries and other commercial activities resulting in operational challenges. The entire supply chain has been disrupted, impacting the market negatively. The market is then expected to recover and reach $31.05 billion in 2023 at a CAGR of 6.8%. North America was the largest region in the OOH advertising market in 2019. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The rising urban population contributed to the growth of the out of home (OOH) advertising market. The increase in population in urban cities increases traffic congestion and waiting time. According to INRIX 2019 Global Traffic Scorecard, Boston is ranked as the most congested city in the US losing 149 hours per year to congestion, followed by Chicago (145 hours), Philadelphia (142 hours), New York City (140 hours), and Washington D.C. (124 hours). With people spending more time outside their home in traffic and other areas, OOH advertising holds the utmost importance in advertising. According to the UN World Urbanization Prospects 2018 revision, 55.71% of the world’s population live in urban areas and is expected to increase to 68% by 2050. Over a third of expected urban growth will occur in just three countries - India, China and Nigeria, and by 2050, the expected urban dwellers in India could be 416 million, China 255 million, and Nigeria 189 million. The rise in the urban population in developed and developing countries, which is contributing to the increasing traffic congestion, is driving the OOH advertising market. The volatile cost of advertising is expected to limit the out of home advertising (OOH) market’s growth. The billboard advertising costs are volatile and are affected by several factors such as circulation (total volume of traffic that passes the billboard), demographics, and impressions. Additionally, the cost of designing an ad and the cost of building the physical one also influences the overall cost. According to Fit Small Business, a digital resource company, costs of average physical billboards in US rural areas are $250, in the range of $1,500 - $4,000 in mid-size cities, and $14,000 and above in large cities. For instance, physical billboard cost in Cedar Rapids is $550 - $4,000 per month for a population of 209,658, and in Los Angeles is $1,000 - $10,000 for a population of 10 million. These costs include only the rent, while the cost of designing an ad varies. Therefore, the volatility of the cost of advertising harms the out of home advertising market. Companies are increasingly using artificial intelligence to advertise their product. The major applications and benefits of artificial intelligence for digital out of home advertisement are agile and trigger data-driven campaigns. For instance, McDonald’s used data like weather and time of day to remind the consumers to promote ice creams sundaes on a hot day, and on the other hand Coca-Cola promoted smart water when the temperature exceeded 21 degrees. Virgin trains also used real-time traffic data to show motorists how much quicker their journey could have been by using trains. Therefore, AI and automation can optimize ads and update them creatively according to the data. In September 2018, the Australian outdoor ad operator oOh!media acquired Adshel, an out of home advertising company, for a deal amount of $570 million. The acquisition of Adshel is expected to complement the oOh!media business. oOh!media is entering into new segments of street furniture and rails in Sydney and Melbourne. The company is looking forward to fast-tracking innovation across their entire network to build engagement with the audience and to make their offering more compelling for advertisers.