At e4m OOH Conference 2024, Jayesh Yagnik, Chief Executive Officer, MOMS Outdoor Media Solutions, took the stage to talk about unlocking the untapped potential & power of OOH in non-metro India.

He started off by busting the myth of only students from large cities wanting to study abroad. “According to a latest Economic Times report, a huge number of students seeking to study abroad come from smaller towns like Ludhiana, Amritsar, Lucknow, Raipur, Bhopal etc.” From a travel and tourism perspective, Yagnik shared that according to Thomas Cook, more and more people from the smaller towns are opting to travel abroad. 

“Even Victoria’s Secret shared that they received huge orders just before Valentine’s Day from a small town just outside Patna,” he mentioned. Yagnik pointed out that all these facts highlight the power that lies in these smaller cities or non-metros. According to Pitch Madison Report 2024, the overall OOH AdEx comes to around Rs 4000 crore, and in the past 5 years, OOH as an industry has grown 1.5x in size. 

Yagnik shared that back in 2019, the split between metro and non-metro spending was 80:20, which in 2023 became 70:30. “If we speak of the OOH industry of Rs 4000 crore, it's a good Rs 400 crore shift from metro market to non-metro market that we see,” he said. 

Sharing some more statistics, Yagnik mentioned that around 65% of spends come from the top 5 categories in outdoor. “Real estate is the top category, which is using outdoor extensively well, and to some extent FMCG. But apart from that, in categories like organised retail, consumer services and BFSI, the shift is happening and these are the sectors that have realised what potential these towns hold for them,” he added. Some more categories that are using the non-metro markets, over the metro markets are Automobile, Telecom, TV Channels, Footwear etc. 

Factors driving the market shift

According to Yagnik, rapid urbanisation in smaller cities is leading to a growing middle class consumer base with evolving needs and preferences. 

Another aspect, that is drawing the brands towards smaller markets is the rising disposable income. Yagnik noted that increased economic opportunities are resulting in higher disposable income, creating newer avenues for brands to target. 

Changing lifestyles is the third aspect that is resulting in this market shift. According to him, consumers in smaller cities are adopting modern lifestyles, presenting opportunities for brands to cater to their evolving aspirations. 

For OOH, these factors have resulted in major shifts in investments. For instance, at Airports, the investment grew from 4% in 2017 to 9% in 2024, at malls & multiplexes the growth was from 14% in 2017 to 26% in 2024 and in Transit, it grew from 38% in 2017 to 49% in 2024. “There is a growth in mall culture in the smaller markets, more and more airports are coming up in smaller markets, the metro rail landscape is changing and also the widespread use of the road network is giving more and more opportunities to advertisers,” Yagnik mentioned. 

Unlocking OOH in Non-Metro

Yagnik spoke about the 4 key aspects with respect to untapping the potential of OOH in smaller towns. First was that it is a cost-effective solution. He noted that non-metro OOH offers more affordable options compared to metropolitan cities making it an attractive choice for brands looking to stretch their marketing budgets and reach a wider audience. 

Speaking of increased recall and impact he highlighted that with less clutter and more unique placements non metrooh can effectively capture consumers attention leading to enhanced brand recall and the lasting impression on the target audience. 

Yagnik also mentioned that in non metro regions, because of lower costs, brands can afford to exist for a much longer period of time, with sustained visibility and the opportunity to build a strong consistent presence overtime with less cost. 

Lastly, he shared that tailoring OOH campaigns to the unique cultural, linguistic and social nuances of non metro audiences can help brands create a more meaningful and impactful connection with their target consumers.