Programmatic OOH yet to take off in India: Dipankar Sanyal

Dipankar Sanyal, CEO of Platinum Communications, feels programmatic would take 2-3 years to become a huge part of the media budget pies

by Team PITCH
Published - May 07, 2024
4 minutes To Read
Programmatic OOH yet to take off in India: Dipankar Sanyal

Gone are the days when OOH advertising was solely reliant on static images and predefined schedules. Today, the game-changer lies in the integration of programmatic technology, injecting agility and precision into campaigns like never before. However, according to Dipankar Sanyal, Chief Executive Officer, Platinum Communications, it
is a technology that is yet to take off in India.

“Only 1-3% of the pies have been on programmatic projects. Everything is done from a traditional point of view. It is still at a very nascent stage. Probably 2-3 years down the line, programmatic would be a huge part of the pies,” he said.

"And this is because one needs networks to get advertisers on programmatic. If today, a media owner has one prime spot and he turns it into a digital billboard, he is able to command that kind of price. But for him, a programmatic buy may be a loss. Tomorrow, when 10 other billboards come up in the same place, and they all become digital, that's when the programmatic technology starts taking shape,” Sanyal explained.

"Hence, there needs to be consolidation happening at the media owner's part and they should see value in getting into programmatic. They're not seeing any value. So, unless they see value in it, programmatic doesn't help," he added.

A bigger problem at hand that the industry has been dealing with is a common measurement matrix system. He shared, “Today, the problem is that everybody has their own set of tools and stuff to plan, but everybody is talking a different language, throwing out different numbers.”

“Once there is some kind of quantity to the numbers that we have for the data that we are presenting to our clients, then things will start falling in place. This will happen very soon because IOAA is pushing it. People, agencies, media owners are participating and something which was lacking for so long is happening now,” he added.

But OOH is an incomparable medium since the size, the location, the quality of the billboard, the quality of the flex, the content, everything differs when it comes to OOH. So how will this common matrix be possible?

As per Sanyal, if you really look at it, there is a method to it and it has fallen in place to some extent. “I wouldn't say to perfection because everything takes time to be perfect. Even today if you look at the TV measurements or the digital measurements, they aren’t perfect either. But it develops every year and it evolves.”

“In the outdoors, there is nothing as of now but there are ways of measuring. Rather, every agency today measures it in some way or the other. So, there is a method to that madness but everybody has a different thought process and once everybody comes in line with a single thought process, this is what is going to be an effective mode,” he added.

Today, the UK market, the US market, the Australian market, even some of the European markets like Germany and France, have evolved. If they are using similar techniques or getting the right set of data, then it's not impossible in India.

The only prerequisite is that it needs investment. Once the method is agreed upon, which is almost done looking at the way things are progressing, he shared, it will need money to be implemented.

“Evolution happens through investment and not on its own. So, once the industry comes together, puts money on the table, things will fall in place,” Sanyal highlighted.

Another reason why programmatic feels like a distant dream is that even though OOH has recovered the fastest to its pre-Covid levels, it still holds only a small share of the total ad budget.

“Among all the changes that we are seeing happening around us, we are still at 5-6% media of the total ad spend which has been consistent all throughout. The media budgets have gone up and so have the spends. Today, it is a one-lakh crore industry, OOH has still remained at 6%,” he elaborated.

If from this 5-6%, the industry wants to reach a double-digit growth figure, the advertisers need to feel that they are getting good numbers in return.

Sanyal concluded, “Today, every brand manager is answerable to the shareholders and if the measurability is not coming through, then it always be, ‘We will take care of outdoor later’. Once I can speak the same language as other media forms, it is bound to grow.”

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