Ahmedabad’s OOH market balances growing demand with rising inventory costs

Ahmedabad’s OOH market is moving from seasonal bursts to almost year-round demand, with advertising now active for nearly 10 months of the year. According to Sanjay Raval, Director, Sitemax Media LLP, the city’s OOH market is estimated at around ₹400 crore, with Gujarat accounting for approximately ₹600 crore. However, rising tender costs and restrictions on new private hoardings are creating challenges for media owners. 

With private permissions for new sites largely closed, municipal tenders have become increasingly competitive, pushing up inventory acquisition costs. Sanjay believes the gap between what media owners pay to secure premium sites and what Ahmedabad’s advertisers can afford is becoming harder to bridge, as the city’s pricing potential remains below that of larger markets such as Mumbai. 

DOOH presents another opportunity, but limited permissions for private media owners to convert existing static sites into digital formats continue to constrain growth. While digital installations around the Sabarmati Riverfront demonstrate the format’s potential, Sanjay believes wider adoption will depend on creating more opportunities for media owners to invest in digital inventory. 

Infrastructure development could further reshape the market. Improvements to roads, railway stations and the airport, alongside the gradual growth of Ahmedabad Metro ridership, could create new advertising opportunities. However, redevelopment and changing urban aesthetics could also lead to the removal of existing hoardings, tightening supply further. 

Despite these challenges, Sanjay sees significant headroom for Ahmedabad’s OOH market as real estate activity, investment and advertiser demand continue to grow. The next phase of growth, he believes, will depend on balancing inventory availability, tender economics and permissions to ensure that the industry can expand alongside the city’s development.