Why OOH must evolve to build urban spaces

For C D V Subbarao, out-of-home (OOH) advertising has always been capable of being much more than a medium for brand visibility. Over the years, Prakash Arts has been involved in multiple PPP and city beautification projects, including large-scale footpath redevelopment initiatives, which he believes have created value far beyond commercial returns. 

“Only putting up a billboard benefits the business and the customer. But when we build public infrastructure, we are contributing to society. That gives much greater satisfaction,” he says, reflecting a larger vision.  

Addressing the perception challenge 

Subbarao believes public infrastructure and development initiatives will also help fundamentally alter how the industry is perceived by governments and citizens.  

This is important because, as he says, OOH companies have historically been viewed as entities that simply monetise public spaces, despite its contribution to city economies and urban communication. This is one of the reasons he feels OOH advertising still does not receive the institutional respect it deserves. 

“Even today, OOH is not a priority for many corporations because there is the perception that there is a lot of money in this industry, but that media owners are contributing very little,” he points out and highlights how the business realities are often very different. Rising licence costs, increasing competition and operational expenses have significantly impacted profitability across the sector.  

The disconnect between reality and perception, he believes, has prevented the industry from receiving the policy support and long-term thinking that it requires. For him, changing this perception is critical for the industry’s future growth. By participating in urban development projects, media owners can demonstrate that they are equally invested in improving cities and public infrastructure. 

Citing an example of Prakash Arts’ recent project, he says, “We developed more than three kilometres of footpaths with proper granite work and public amenities. Projects like these create goodwill because people start seeing that the industry is giving something back.” 

Why long-term policies matter 

Subbarao also strongly believes that the industry’s infrastructure challenges are directly linked to short-term policy frameworks. “If permissions are given only for two or three years, why would anyone invest heavily in engineering and infrastructure?” he asks, quite justifiably. He believes that longer tenures would completely change the quality of outdoor assets across the country. Greater certainty would encourage investments in structural design, soil testing, engineering studies and safety mechanisms. 

“When you know that you have an asset for ten or fifteen years, you are willing to spend much more money on making that structure stronger and safer,” he points out, and cites airport media assets as examples of how long-term tenures lead to better infrastructure and higher-quality installations. “You see stable structures in airports because operators have long-term visibility. The same thinking should be applied to city media as well.” 

Indian OOH needs one policy framework 

Fragmented regulatory environment is another critical challenge, according to Subbarao. “Not just every state, every city has its own policy.” This, he feels, creates unnecessary complexity for media owners, especially those looking to expand across markets. Different approval mechanisms, varying by-laws and changing regulations often increase operational uncertainty and discourage investments. “There should be an all-India policy for at least ten years. This will draw more investments,” he says. 

How the real estate sector has changed OOH economics 

Subbarao also points to the real estate sector as one of the biggest contributors to OOH’s recent growth. “Earlier, campaigns would last for fifteen days or one month. Real estate changed that.” Long-duration campaigns from real estate brands have introduced greater stability into the business and improved revenue visibility for media owners, he feels. “Because of real estate, sustainability has come into the business.” 

While Subbarao remains cautious about predicting explosive growth, he believes advertising spends will continue to rise steadily over the coming years. 

Need for balanced DOOH growth 

Regarding digital OOH (DOOH), although he acknowledges its rapid growth, Subbarao remains pragmatic about its future. “Today, digital is still only around four or five per cent of the industry,” he points out. 

According to him, digital works best in situations where multiple advertisers are competing for premium locations. “When the same location may be required by four or five advertisers, then digital can create more value.” However, he questions the tendency to indiscriminately digitise every available location. “If there are already ten permissions in an area, why should everything become digital?” He believes the industry must ensure that digital growth remains commercially sustainable and is supported by genuine market demand, rather than simply following global trends. 

Why the industry needs institutional participation 

For most OOH industry players, having an all-India presence is an obvious goal and an understandable aspiration, but Subbarao also feels that the next phase of growth will require larger institutional participation and long-term investments. “More multinational companies should come into Indian outdoor advertising.” According to him, stronger institutions, better governance frameworks and larger investments will ultimately determine how quickly the industry can evolve. 

The future of outdoor advertising, according to Subbarao, is not merely about increasing inventory or introducing more digital screens, it’s about people and public infrastructure. 

Ultimately, he believes the industry has an opportunity to reposition itself, not merely as an advertising medium, but as a contributor to urban development and city building. Only then, he emphasises, will outdoor advertising truly earn the trust, respect and long-term support it deserves.