HOME   #KPMGMediaOutlook
Out of home - Driven by transit

Out of home: Driven by transit

Outlook for the year

In 2015, the Out of Home (OOH) industry in India received a boost by a combination of factors including new categories spending on OOH media, E-Commerce and M-Commerce. While retail, consumer services and real estate held strong, current year’s growth of 13 per cent1 was scripted by advertisers from e-commerce, automobile and telecom sectors with the different formats benefitting. The overall share of OOH in the total advertising pie showed a rise to 5.4 per cent1 from 5 per cent in 2014. With a growing impetus on e-commerce, expected launch of automobiles, and signs of a strengthening economy, all leading to an increased ad spends, 2016 is expected to see sustained growth for the sector.

Key Statistics

• Billboards continue to dominate the total revenue share
• Street furniture declined to about 5 per cent1
• Airports, transit and ambient together accounted for 37 per cent of revenue share and are posting a steady growth1
• Shift in the top ten spenders was noted, wherein brands like Vodafone, OLX, Idea, Big Bazaar and SBI Home Loans which were in the top ten brands list in 2014 did not make to the list in 2015.2
• In 2015, Vodafone, Tanishq and Big Bazaar were replaced by Housing.com, Amazon and Flipkart for the top three positions for maximum space in OOH.2
• Mumbai was the major contributor to OOH revenues (22 per cent) followed by Delhi (19 per cent) and Bengaluru (10 per cent)1

Pain points for the industry from the past

• Lack of a measurement metrics
• Fragmentation
• Slow adoption of technology (e.g. digital OOH)

However, industry players are working with Indian Outdoor Advertising Association (IOAA) towards building an Audience Measurement System for Outdoor Media and if successful, could be a game changer.  Also, digital OOH is slowly gaining momentum especially though transit media in metro cities.

What’s trending: How technology is changing outdoor advertising

Technology is continuously evolving and advancing and changing the way one does business.  For years, the only real form of outdoor advertising was billboards. Technology has drastically changed the way one might treat outdoor advertising, and businesses are now looking at potentially purchasing advertisement space and what different types of options are available and how these can impact businesses. Some of the key technology trends are:

• Interactive advertising – wherein customers interact with the medium which gives more time for the advertiser to communicate its message
• Precision targeting with data analytics – wherein companies can get accurate information on the number of people at any location, by the time of day or day of the week. They can also understand the age group, gender or demographic they belong to. By applying the science of data, there is the opportunity to achieve precise targeting with OOH advertising, resulting in potentially more effective campaigns and improved ROI on marketing budgets.

The road ahead

The road ahead for Indian OOH industry is stimulating, many factors are expected to drive growth for the sector.

• Development in infrastructure fuelled by announcement of government initiatives is likely to lead to the share of digital screens increasing manifold; also reduced costs to produce LED screens is likely to give the segment a much needed impetus.
• New developments in multi-targeting where OOH planning systems are integrating with data sources including mobile, online browsing and shopper purchase records. The advertisers can utilise OOH to target micro-specific segments on the move.
• Real-time OOH trading could make its first moves into India as OOH vendors integrate inventory into demand-side-platforms. Digital OOH’s ability to target consumers on a real-time basis could lead to more robust use of the segment.
• Fourthly, with technological advancements, OOH is likely to become a more intelligent option as many brands would take advantage of the developments in internet-connected and interactive screens. This is likely to drive more customers and eventually advertisers towards it.

The above OOH predictions are based on advances in technology that continue to shape the industry and one can expect more intelligent, highly-targeted and measurable campaigns as the OOH medium evolves. Considering the above, the projected CAGR (2015-2020) is 13.1 per cent.1

Conclusion

With growing competition between the products and services, effective and efficient advertising seems to be the need of the hour and this need has resulted in new and innovative changes in OOH advertising media. Gradually, electronic LED Billboards, mobile displays, roll ups, vehicle wraps, skywalks, building wraps, flyover panels and interactive screens are changing the trends in Indian OOH advertising in a massive way.

Sources
1 KPMG in India analysis and discussions
2 These Brands have maximum OOH Spends and Space in India – 2015, http://www.allaboutoutdoor.com/news-detail.php?mid=4509, accessed on 18 March 2016
<< Previous chapter Next chapter >>
Home Download PDF (12MB)
Follow KPMG in India’s official social media pages on:
Twitter | LinkedIn | Facebook | YouTube | Google+ | Instagram
© 2016 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.