OOH set to grow by 8.2%, says report

The Pitch Madison Media Advertising Outlook 2014 was presented on 19th February at ITC Grand Maratha, Mumbai. According to the report, the advertising market is expected to grow by 16.8 percent, riding on the back of Lok Sabha and State assembly elections.

Annurag Batra, Editor-In-Chief, The exchange4media Group, said that there were lots of surprises in the report and Sam Balsara, Chairman & Managing Director, Madison World, actually surprised everyone with his introspective presentation. Balsara started his presentation by declaring 2013 as "cautious” and "lucky for some”. He projected that the advertising industry witnessed a growth of 10 percent after three years - the industry stood at Rs. 28,694 crore in 2012 and Rs. 31,877 crore in 2013.

It was revealed in the report that the Outdoor medium is set to grow by 8.2 percent and bring in total ad spends of about Rs. 2138 crore. In outdoor transit media continues to be the preferred option. There has been a growth of 13.9 percent boosting outdoor growth to 6.2 percent. Outdoor had pulled in Rs. 1862 crore in 2012 and was expected to gather Rs. 1943 crore in 2013 but it surpassed its projection by Rs. 34 crore and the total amounted to Rs. 1977 crore in 2013.

Since the Outdoor medium has evolved in malls and multiplexes, experts suggest that it still holds out a good deal of hope and potential. Brands want to engage with the consumers more than ever before. There are several opportunities that this medium can tap into and Transit Media has empowered the medium enabling it grow and sustain itself in the highly competitive advertisement sphere. Transit Media has grown at a brisk pace of 13.9 percent surpassing the projected growth of 10 percent in 2013. In 2013, Outdoor excluding Transit Media grew by nominal 3 percent raising Rs. 13 crore to last year's projected figures of Rs. 1350 crore. It is projected to grow by 10 percent in 2014 piling up Rs. 675 crore whereas the traditional Outdoor Media will grow at 7.3 percent and is expected to contribute Rs. 1463 crore.

Balsara observed that many advertisers tried to counter the slowdown with increased advertising and FMCG companies ruled the roost. He has projected a whopping 16.8 percent growth in 2014 because it's going to be an election year wherein 50 percent of the growth (around Rs. 5000 crore) will be riding on the back of Lok Sabha and State assembly elections of five states of Maharashtra, Andhra Pradesh, Sikkim, Orissa and Manipur. The balance will come from organic growth and new advertisers.