OOH - Out of Home

Introduction

Out of home advertising is focused on marketing to consumers when they are "on the go" in public places, in transit, waiting (such as in a medical office), and/or in specific commercial locations (such as in a retail venue).

Facts & Figures

A FICCI-KPMG report on the media and entertainment sectors released in March 2013 pegged the OOH industry in India at around ₹1,823 crore (2012). Growing at a CAGR of 8.39 per cent, the sector is projected to touch ₹2,727 crore by 2017. This growth is just marginally higher than its growth since 2006. Out-of-home enjoys a unique and fundamental advantage over other media: its audience is constantly growing, even during a recession.

OOH advertising in India is still in its growth stage. Digital, OOH and TV commands 1 per cent or 2 per cent of the overall ₹24,000 crore advertising industry. This rate will grow to 4 per cent or 5 per cent in the next two years. About 80 per cent of this would belong to two or three national players and we hope to continue being the revenue leaders of the digital, OOH and TV industry.

The sector-wise analysis reveals that real estate has upped its OOH investments most rapidly as compared to any other sector making it the most dynamic category for the first half of 2013. The sectors’ spends grew by 51 per cent as compared to 2012. The report states that the realty players from Mumbai and Delhi have been spending heavily in traditional OOH.

Many other sectors slightly exceeded their spends in the first half this year as compared to last year making the overall OOH share of spends bigger and thus creating an 8 per cent growth as compared to 2012. Categories like banking, mobile handsets, airline operators, housing finance, life insurance, retail (particularly the innerwear segment) and healthcare saw greater growth as compared to last year’s first half.

Two-wheelers have emerged as one of the most active spenders in the first half of 2013 as compared to the same time in 2012, registering a growth of at least 50 per cent. Brands like Hero Motocorp, Bajaj and Honda have captured the roads with larger than life displays for their two-wheelers. The Indian OOH advertising industry is estimated to grow at 11 % in the next five years to reach ₹26 billion in 2016.

Industry Revenue

The Indian Media and Entertainment Industry is estimated to be more than INR 905 billion in revenue, and is expected to grow at a CAGR of 16% to reach INR 1,640 billion by 2017. The Indian media and entertainment (M&E) industry has grown by 11.8 per cent in 2013, vis-à-vis 2012, and touched Rs 918 billion. It is expected to touch Rs 1785.8 billion by 2018, with a CAGR of 14.2 per cent. India’s media and entertainment business is expected to double in size to Rs.1.66 trillion by 2017, offering the prospect of being an employment generator without needing large public investments.

According to PWC data, over the coming five years, global entertainment and media revenues will continue to grow – in line with its historical trend – slightly behind global GDP. But this apparently consistent picture masks deep discontinuities, as digital drives revenue growth and spending diverges across different segments and countries. In 2018, non-digital media will continue to account for the largest share of global spending, TV will still be the biggest advertising medium, and the US will be the world’s biggest entertainment and media market. But – respectively – digital revenues, Internet advertising and China will all have dramatically narrowed the gap. This evolving environment will be characterised by six underlying shifts.

By the end of 2014, the industry is expected to stand at Rs 1039 billion. Additionally, digital advertising has shown promising growth in 2013, vis-à-vis 2012, which is about 38.7 per cent, followed by gaming which grew by 25.5 per cent.