OOH to grow at 11% in 2019: Pitch Madison Advertising Report 2019
By M4G Bureau - February 14, 2019
Organised retail, consumer services and real estate categories are the major contributors to the OOH pie
The latest Pitch Madison Advertising Report 2019 predicts the advertising market to grow 16.4% this financial year and Rs 70,889 crore in 2019, up from Rs 60,908 crore last year on the back of Genera Elections, ICC Cricket World Cup and growing consumption economy. Highlighting last year’s achievement, the advertising industry grew by 14.6% in 2018; surpassing their estimate of 12.03%. The report states that the Indian media & advertising industry is on a high growth path, and appears to be finally reaping the benefits of demonetization and the Goods & Services Tax (GST), that had hit the growth of Adex in 2016-17.
The OOH industry also seems to enjoy a growth rate of 11% and has touched INR 3, 750 crore with the major contributions done by organised retail, consumer services, and real estate categories. The ad share of the OOH medium in total advertising pie is assumed to be 5%.
The OOH growth background
In 2018, OOH crossed the Rs 3,300 crore mark and saw a growth of 9%, almost at par with their projection of 10%. Transit Media grew by 8.5%, as against projected growth of 8%, and Outdoor grew by 9.3%, bringing the overall growth to 9.1%. Over last seven years, OOH is one sector that has maintained its contribution to the total media pie at 6%.
Highest growth was recorded in consumer services category (33%), followed by Organised Retail (24%) and then Real Estate (18%); the top three categories contributed to more than 75% of the overall growth.
FMCG, which is the biggest category in Adex, has also started to use OOH heavily and now contributes 9% to the overall OOH Spends. FMCG in OOH medium has recorded a growth of 18% in spends as compared to 2017.
Sneak peek into future
According to the PMAR report, the Outdoor is expected to grow by 11% in 2019, taking the total Outdoor Advertising Market to Rs 3,750 crore. Billboards will continue to be the largest revenue contributor, although metro line, malls and airports continue to boost the category size. Emerging categories like OTT have begun to dominate OOH in key metro markets. Digital screens are slowly but surely growing in number and will in a couple of years contribute to this medium’s growth.