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The expansion of Digital Out of Home (DOOH) in India is gaining momentum thanks to technological advancements, urbanisation, and evolving consumer behavior. According to GroupM's 2024 global advertising forecast, DOOH advertising is expanding significantly and it will soon make up a sizable amount (about 42%) of all out-of-home (OOH) advertising income globally.
Ajay Mehta, Managing Director of Cinema and OOH Solutions at GroupM India, discussed the rapid growth of Digital Out-of-Home advertising. "Digital out of home, both in terms of volume of number of screens, as well as value of spending, is increasing dramatically."
The rapid expansion in the number of screens not only increases reach but also opens up myriad possibilities for advertisers to engage with audiences in more dynamic ways.
He highlighted how an expanding DOOH network enables more contextual and intelligent messaging through Application Programming Interface (API) integrations, such as weather, traffic, and AQI updates. While these technologies were previously only case studies, Mehta expects them to become widespread by 2025.
Programmatic advertising is another growing aspect of DOOH. "Today, the number we use is that digital out of home is 10% of the market, and further programmatic is 10% of that as well, hence, it's just 1% of the overall out-of-home market," Mehta explained.
As DOOH gains traction, programmatic buying is also expected to follow suit. He also notes the increasing role of QR codes, geolocation, augmented reality (AR), and virtual reality (VR) in shaping the industry.
Sustainability is another area where OOH is evolving. "In 2025, you'll probably see a lot more of the industry coming together," Mehta predicted, referring to the use of recycled materials and energy-efficient displays. Additionally, the emergence of new touchpoints, such as gated communities, retail stores, and corporate parks, will strengthen the connection between DOOH and digital platforms.
Urban transit is another significant area of expansion. "Airports have always been a large component of out-of-home, but metros are becoming more important due to brand safety, hygiene, and significant commuter numbers," Mehta underlined. He emphasised that government investments in urban infrastructure are creating more opportunities for OOH advertising.
Speaking of India's DOOH Market Compared to Global Standards, Mehta acknowledged that India lags behind global markets. "Forget global comparisons; even within Asia-Pacific, Southeast Asia is far more advanced in terms of digital out-of-home," he said.
However, he pointed out recent breakthroughs in 2023 and 2024, such as the introduction of digital billboards along Mumbai's Western Express Highway. "Prior to this, DOOH in India was mainly limited to ambient media like malls, airports, metros, and corporate parks. Now it's coming to roadsides as well. This trend will accelerate in 2025 but India has been slow to adapt," he added.
However, the accelerating adoption of DOOH in India has been hindered by high capital expenditure (CapEx) costs. "The CapEx required was incredible," Mehta stated. However, as technology costs decline, more investments are flowing into the sector, he noted. Additionally, regulators and municipal authorities are beginning to adopt a more progressive approach toward DOOH. The moment DOOH gets properly integrated into urban planning, it will not only serve advertising but also help beautify cities.
A significant challenge has been the perception of DOOH as a shared media format, with multiple brands appearing on the same screen. "People are getting used to it, and more research and measurement are being done to capture its impact," Mehta said.
Speaking of transit advertising, Mehta discussed how airport advertising has flourished in India's post-pandemic economic recovery. "We are seeing a K-shaped recovery, where premium brands have a disproportionate share of consumer spending, and airports provide a clean, structured environment to communicate with these premium audiences," he explained.
Despite the increase in work-from-home models, mobility remains strong. "Mobility is back, in fact, higher than pre-pandemic levels," Mehta said.
Residential DOOH is also on the rise, with advertisements appearing in elevators and housing societies. FMCG brands, local retailers, and quick commerce companies are particularly interested in residential DOOH. "In terms of screen share, residential DOOH is a big percentage, but in terms of spending, it's still hyperlocal," he highlighted.
The role of digital amplification in OOH advertising, a new trend in OOH is leveraging digital amplification to create virality. Instead of using multiple billboards across cities, brands now focus on a few high-impact sites and extend their reach through social media.
"Amplification on social media gets you more reach, but the impact of a physical billboard delivers a different communication objective," Mehta explained.
He mentioned successful campaigns such as the Zomato-Blinkit ‘Jugalbandi’ campaign, where a creative message was amplified online. However, he emphasised that while social media buzz is valuable, physical billboards still hold their unique power in advertising, and both will sustain themselves.
When it comes to the challenges faced by the OOH Industry, Mehta identified industry fragmentation as a key challenge. "Today, the industry is extremely fragmented, which creates challenges in setting uniform standards and SOPs. But, increased organisation and compliance will boost advertiser confidence and increase ad spends," he noted.
Regarding measurability, Mehta sees it as an opportunity rather than a challenge. "Unlike other media that rely on sample sizes, OOH allows for direct audience measurement," he explained.
Various technologies, including camera-based analytics and mobile data tracking, are being tested to improve accuracy. "Roadstar is one of those initiatives, but industry-wide adoption takes time due to multiple stakeholders," he added.
Mehta praised the Indian Outdoor Advertising Association (IOAA) for working towards a unified measurement system like Roadstar. "I think IOAA is doing a good job in trying to bring different voices together and come out with a common currency," he said.
He believes measurability is a crucial opportunity and stated, "We have our own proprietary tools and methodologies in creating measurement because we believe every media investment should be measured properly."
Regarding regulatory changes, he acknowledged the impact of incidents like the Ghatkopar tragedy, which led to new restrictions on DOOH operation hours. "When it comes to safety, it has to be of primary importance. There cannot be any compromise on that," Mehta asserted. He advocated for uniform national policies based on global best practices to ensure consistency in the industry.
Mehta is optimistic about OOH’s future. "If you look at my journey in a day as a consumer, one of the best ways to connect with me is through out-of-home," he said, emphasising the relevance of OOH in a consumer’s daily life. He believes consumer habits will dictate future brand investments, with DOOH tapping into digital budgets as well.
"As better infrastructure gets created, additional spending will follow. Stronger, more robust players will drive new initiatives, benefiting both supply and demand,” as per Mehta. He cited the growing investment in digital out-of-home, programmatic advertising, and anamorphic content as key factors shaping the future.
Despite temporary economic slowdowns, Mehta is confident about the long-term prospects and foresees that, "The Indian economy is robust enough and growing rapidly. Over the next four to five years, I see a very bright future for OOH."
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