By: Bhawana Anand
Last updated : March 30, 2020 9:55 am
Traditional media accounted for 54% of total OOH revenues, transit 39%, DOOH 2%
The forecast is for the M&E industry to reach the size of Rs 2.42 trillion (US$34 billion) by 2022 at a CAGR of 10%. OOH reached the size of Rs 39.1 billion in 2019 and is forecasted to grow to Rs 41.3 billion in 2020, Rs 46 billion in 2022.
In 2019, traditional media accounted for 54% of total OOH revenues, transit 39% and DOOH 2%.
The OOH growth in 2019 was powered by airport advertising, Metro station naming rights, and the Indian Railways’ push to drive non-fare revenue growth, says the report. The growth was assessed on the basis of coverage of traditional, transit and digital media, but excludes untracked OOH media such as wall paintings, ambient media, proxy advertising, etc. which could added up to an additional Rs 10-15 billion.
The report cites that DOOH contributed 2% of total OOH revenues (Rs 1 billion) and is forecast to grow at a CAGR of over 33% to reach Rs 2 billion by 2022.
OTT category emerged as the leading spending category in 2019 in the OOH space, whereby various players used the medium for different launch promotions. Other top spending categories were real estate, FMCG, financial services and media. The top 5 categories contributed 65% of OOH spends.
Transit media
Continuing its pace, the transit sector is set to grow from 39% in 2019 to 44% in 2020 of the total segment. Railway media accounted for about Rs 10 billion OOH revenue in 2019. Transit media is expected to be driven by new Metro rail expansions, new airport routes and new airports, bus shelter/terminal development, etc.
Looking ahead
India has over 100 direct-to-customer brands that require physical presence hence OOH partnerships will benefit these brands and could expect equity for space deals in this space.
DOOH networks will be connected to large ad platforms to fill up inventory and it is possible
that consolidation could take place within two to three years in media owners. There is also an opportunity for technology companies to provide services like design, scheduling, traffic, invoicing, payment management, etc. for international DOOH companies out of India.
The report also clearly states that the findings were established before the COVID-19 outbreak. Accordingly, estimates for CY2020 provided in the report have not been updated basis the impact of the coronavirus fallout. The forecasts will be revised going forward.