South DOOH revolution: By 2025, 40% ad spend growth likely to come from digital screens

The Out-of-Home (OOH) advertising landscape in the South India market is undergoing a major transformation, driven primarily by the rapid rise of Digital OOH (DOOH) and the region’s evolving urban infrastructure. With the integration of robust technologies like AI-powered dynamic creatives, real-time content management, and programmatic advertising, the region's DOOH could account for 30-40 per cent of total ad spending in the region in 2025, said experts.

This growth trajectory reflects the increasing shift from traditional static billboards to more flexible, targeted, and data-driven digital advertising solutions.

“South India’s OOH market is projected to grow at a CAGR of 10-12% due to DOOH integration and urban infrastructure development,” said Jayesh Yagnik, Chief Executive Officer, MOMS Outdoor Media Solutions. This growth and boost in ad volumes will primarily be driven by investments from FMCG, EdTech and e-commerce players.

A diverse range of brands across multiple industries are increasingly leveraging Digital Out-of-Home (DOOH) advertising to enhance visibility and engage with consumers in high-traffic areas. Key sectors driving this trend include FMCG, e-commerce, telecom, automotive, real estate, education, and entertainment. FMCG brands use DOOH to build brand awareness in urban areas where consumers are constantly on the move, while e-commerce platforms and tech companies tap into the region's growing digital-savvy population to promote offers and drive online traffic.

There are also Telecom providers who utilise DOOH for both mass marketing and region-specific promotions, capitalising on its ability to target local demographics. Automobile manufacturers and real estate developers focus on high-visibility digital screens in strategic locations such as metro stations, malls, and airports to showcase their latest models or projects.

Additionally, EdTech platforms, gaming companies, and OTT streaming services are increasingly turning to DOOH to capture the attention of younger, urban audiences, making use of dynamic, attention-grabbing ads that can be personalised and updated in real-time.

Brands going big on the medium for high-visibility campaigns in South India include Jio, Airtel, Maruti Suzuki, Tata Motors, Hyundai, Unilever, ITC, Nestlé, Flipkart, Amazon, Zomato, Swiggy, BYJU’S, Unacademy, Netflix and Prime Video. 

The future of DOOH advertising in the South India market looks promising, with continued growth driven by technological advancements and evolving consumer engagement strategies. As innovations like programmatic advertising, real-time content management, and geo-targeting gain traction, further expansion in the space is expected in the coming years.

“The digital segment is expected to see a CAGR of 20-25% in the coming years, driven by innovations such as programmatic advertising, real-time content management, and geo-targeting,” added G.Vinoth Kumar, Sales & Operations Head of the Chennai-based Adinn Advertising Services Ltd.

He added that cities like Bengaluru, Chennai, and Hyderabad will likely see more digital screens placed in high-traffic areas such as shopping malls, metro stations, bus terminals and airports. According to the FICCI-EY M&E Report 2024, transit media will comprise 40% of OOH revenues by 2026 and digital media will reach 15% of total OOH revenues.

Overall, OOH media grew 13% in 2023 to Rs 41.6 billion, the value of which includes traditional, transit and digital media, but excludes untracked unorganised OOH media such as wall paintings, billboards, ambient media, storefronts, proxy advertising, etc.  FICCI-EY estimates suggest that the revenue will touch Rs 46.6 billion by 2024 and Rs 54.3 billion by 2026.

In fact, last year, the OOH segment exceeded its pre-COVID-19 revenues by 6%.

Like the south market, pan India real estate, organised retail and consumer services were the largest advertisers on OOH

The report also highlights how traditional OOH comprised 62% of revenues and remained the largest segment; transit media comprised the balance 38% while  digital OOH media showed a growth contributing 9% of the segment’s revenues, up from 8% in 2022.

The number of active digital screens is estimated in the range of 140,000 to 150,000, with an anticipation that around 75% of them are currently active

Moving on from numbers, as the digital OOH landscape continues to mature, the ability to measure campaign effectiveness has become increasingly sophisticated and an important piece in the OOH conversation.

Today, advertisers are leveraging a variety of tools to track and optimise their campaigns, ensuring a more precise understanding of performance. This evolution is enabling brands to engage their audiences with greater accuracy and impact.

Currently, advertisers use data from traffic analysis and footfall metrics to measure the success of OOH campaigns. Other tools include post-campaign feedback for effective evaluation. QR codes are also in demand for direct engagement and lead tracking. With tech advancements and AI-powered campaigns, measurability is expected to become easier and more precise.

Brands in South India leverage transit media significantly. This includes branding on metro trains, buses and ride-sharing vehicles. In 2025, Yagnik expects increased brand interest in hyper-personalised content on digital screens and AI-powered dynamic creatives. Brands are also looking into sustainable OOH solutions. “Eco-friendly materials and solar-powered displays will gain traction,” Yagnik added.