DOOH, tech solutions will prop up OOH growth: KPMG
By Bhawana Anand - August 22, 2019
Transit media accounts for 44% of OOH revenues
In its latest study on India’s Media & Entertainment (M&E) sector titled ‘India’s digital future: Mass of niches’, KPMG cites that the industry grew at 13.2% in FY19 over FY218 to reach the size of Rs 1,63,100 crore (Rs 1,631 billion) on the back of rapid growth in digital user base and consumption combined with growing regional demand and monetisation.
Going forward, the report states that the industry is expected to grow at 13.5% CAGR during FY19-24 to reach the size of Rs 3,07,000 crore (Rs 3,070 billion) aided by greater focus on monetisation of emerging digital business models, strong regional opportunities and favorable regulatory and operating scenarios across traditional businesses.
The OOH Industry has witnessed close to 11% CAGR over the last 5 years, growing from Rs 2,000 crore (Rs 20 billion) in FY14 to Rs 3,400 crore (Rs 34 billion) in FY19. However, FY19 didn’t experience a significant growth in OOH advertising expenditure, partly due to the ban on all outdoor advertising in Bengaluru, says the report.
The report says that most political parties started spending for the Lok Sabha election campaigns after March 2019, so the positive impact on revenue growth will likely to be felt in 2020. And several other factors are expected to contributed to the OOH industry achieving around 10% growth in FY20. Wherein post FY20, the industry is expected to grow at 9% CAGR till FY24.
Transit stands strong
The report cites that airport advertising has emerged as a major contributor to the industry’s growth in 2019 with 27% revenue share, followed by other transit formats like trains, buses etc., with 17% revenue share; 5% came from mall media and the rest 51% revenue is said to be contributed by conventional road facing media.
Digital OOH contributes 30% of OOH revenue globally but in India that figure is limited to 3% i.e. about Rs 100 crore.
Yet DOOH growth is expected gain pace spurred by the format’s dynamic character, real time delivery, social media integration and interactive content. Internet on Things (IoT) too will contribute to DOOH growth.
The report also states that invasion of technology in media planning will lead to better distribution of ad inventory based on effective customer targeting.
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