Study reveals growth in OOH spends

Laqshya Media Group's media research wing analyzed the H1 fiscal analysis of 2013 and compared it with the same period in 2012. The research has revealed that despite the sluggishness in the economy, the OOH medium continued to grew, being a media of choice for advertisers who wanted to reach out to their TG with billboards, bus shelters, huge gantries, foot-over bridges, and other outdoor vehicles.





In terms of the outdoor advertising ad revenues, the study revealed that there has been a growth of 11% in Q1 and that of 4% in Q2 this year , when compared to the same period in 2012, making it a total of 8% growth in H1 fiscal of 2013.

Commenting on the statistics and trend, Atul Shrivastava, COO, Laqshya Media Group said, "The overall OOH pie has grown 8% this year as compared to same period last year. There has been a moderate growth in various other sectors, but OOH that has traditionally thrived on automobiles and mobile services took a hit. Big players in the Four Wheeler category like Hyundai and Tata Motors-owned Jaguar Land Rover have been successfully banking on OOH long term sites to create brand salience. The only spike observed in the category was during the brand launch of Honda Amaze and Chevrolet Sail.”

Since Q3 is the Festive Quarter, it is expected to see some more gain in out of home advertising. OOH media vehicles such as hoardings/billboards, bus back panels, bus shelters and other street furniture are gaining as much importance as other forms of media such as print and digital.

The evident growth in both Q1 and Q2 of 2013 as compared to the same period in 2012 reflects the progress the industry has made. With the usage of research and technology, advertisers are bound to be more confident about investing even more in the OOH space, as these findings denote.

Below is the sector-wise analysis:

    - Real Estate upped their OOH investments most rapidly as compared to any other sectors making it the most dynamic category for the first half of 2013. Their spends grew by 51% as compared to H1 of 2012. The realty players from Mumbai and Delhi have been spending heavily in traditional OOH, whereas South based players are also actively visible in premium ambient media like airports.
 
    - Education Sector with large focus on Q1 dominates the other category spends though their spends have reduced compared to H1 of 2012.
 
    - In the Media & Entertainment category, TV Channels particularly the GECs hold a substantial pie in the OOH share of spends.
 
    - Jewellery brands like Tanishq have been spending heavily along with South based brands like Malabar and Kalyan for their store launch   across various towns using OOH to create awareness. There has been a 28% rise in their spends observed this year as compared to H1 2012.
 
   - Many other sectors exceeded their spends slighlty in the first half this year as compared to last year making the overall OOH share of spends bigger and thus creating an 8% growth as compared to last year. Categories like banking, mobile handsets, airline operators, housing finance, life insurance, retail (particularly the Innerwear Segment) and healthcare saw greater growth as compared to last year's first half.
 
    - Two-wheelers emerged as one of the most active spenders in the first half of 2013 as compared to the same period last year 2012, registering a growth of at least 50%. Brands like Hero Motocorp, Bajaj and Honda have captured the roads with larger-than-life displays for their two-wheelers.
 
     - The first half of this fiscal year 2013 also saw a decrease in spends by the traditionally top OOH spenders like automobiles (four wheelers) and mobile services.