Tech adoption in Indian OOH: Overcoming the hurdles

Despite the rise of digital out-of-home (DOOH) advertising, the Indian OOH (Out-Of-Home) industry has been slow to embrace technology. This delay is largely due to several ingrained challenges. Overcoming these obstacles requires a shift in mindset around scale, control, and trust, according to insights from Praphul Misra, Founder and Managing Director of Oi Media. 

Legacy systems and resistance to change 

The OOH industry, one of India’s oldest media channels, is burdened with a legacy value chain that involves local governments, brands, aggregators, and media agencies. Despite the visual impact of digital billboards, the industry’s back-end operations remain outdated. This tech resistance is often rooted in the owner-operator structure of the businesses, where almost 90% are small and medium-sized enterprises (SMEs). This structure fosters skepticism toward technology and hesitancy to invest in digital solutions. 

Praphul recalls an experience with a reputed outdoor media operator where resistance to tech investment stemmed from a misunderstanding of its value. The company had recently spent a modest sum to license part of its software, leading the owner to resist further digital investments. This anecdote illustrates how cost concerns and a limited understanding of technology can hinder progress. 

Mindset barriers 

A common refrain in the industry is: “We’ve always done it this way, and successfully.” This mindset favors traditional methods and resists change. Additionally, many businesses fear that new technology will disrupt established workflows, leading to a perceived loss of control, especially if data needs to be shared across the organization. 

Challenges of scale and scope 

According to Praphul, many OOH SMEs operate on a local scale, lacking the ambition and reach to justify significant technology investments. For these businesses, economies of scale—a key benefit of technology—are often irrelevant. The industry’s focus on maintaining relationships with local governments and stakeholders also diverts resources away from technological advancements. 

Moreover, the sector operates on thin margins, making any tech investment appear as an erosion of profits. The absence of in-house technological expertise further complicates the adoption process. 

Client inertia and traditional decision-making 

Many brands involved in OOH campaigns continue to follow traditional decision-making processes, either by directly participating in the value chain or outsourcing decisions to agencies. This slow-moving automation and limited technology adoption are further impeded by a conventional mindset of prioritizing relationships over data-driven decision-making. 

The path forward 

To overcome these hurdles, Praphul suggests a shift in mindset around scale, control, and trust. He emphasizes the importance of a willingness to experiment and a continuous learning approach. As clients demand more accountability and transparency, OOH companies must embrace technology to meet these expectations. 

Data-driven decision-making and automation 

The good news is that the industry is gradually recognizing the need for change. Larger OOH companies are beginning to leverage technology for tracking campaign performance, analyzing audience data, and optimizing their offerings. These early adopters are setting examples for smaller players. 

Praphul highlights the potential of affordable automation through pay-per-use SaaS models. These solutions can automate time-consuming tasks such as inventory management, scheduling, and invoicing, enabling businesses to focus on strategic activities without requiring significant capital expenditure.