Over the last couple of years, the OOH industry has evolved exponentially and the frequent shift from DOOH to programmatic DOOH has extensively expanded the horizons of the industry.

The fast-evolving industry is going through a transformative phase post-pandemic and the industry is expected to cross Rs 4,106 cr in AdEx in 2023. The brands including Tata Tanishq, Nike, Bata, Hyundai, Renault and Vivo have already shifted to 3D advertising model and are investing heavily in the campaigns.

To know more about how the industry has performed in the last two years, what challenges the industry faces presently, and how agencies are signing into 3D OOH, e4m interacted with experts.

According to the Pitch Madison Advertising Report 2023: OOH crossed 2019 levels, and in 2022 became Rs 3600 crore plus medium and grew at 68% over 2021, registering a 4% share of Adex.

Elaborating on how the industry has evolved in the last couple of years, Rachana Lokhande, Co-Founder of Glocal Bridge, said: “The significant increase in both business volume and workforce is overshadowed by the transformative effects of digitization on how we operate. This shift has been driven by the rapid advancements in connectivity infrastructure and substantial investments in Digital Out-of-Home (DOOH) platforms. Moreover, the integration of digitization has fundamentally changed our working methods, offering newfound opportunities for efficiency and innovation.”

Hardik Kapdi, Co-Founder of OSMO said, “The industry has adapted to the challenges posed by the COVID-19 pandemic. Despite temporary setbacks due to lockdowns and reduced outdoor mobility, the OOH industry has demonstrated resilience and agility in adapting to changing consumer behaviours and restrictions."

Focusing on the advertising cost Saibal Gupta, Managing Partner & CEO at Xperia Group said, “The cost of OOH advertising this year is high as compared to previous years. Moreover, the cost of investment and advertising has increased in the last couple of years because both media owners and brands are buying this medium. The other factors which are responsible for significantly evolving the OOH industry include urbanisation of rural India and the emergence of tendered media.”

Describing the future of 3D billboards in India, Lokhande, said “We are witnessing a rising trend in brand investments towards developing 3D content for digital billboards, aimed at cutting through the advertising clutter. This focus on 3D content aims to create visually captivating experiences and grab viewers' attention effectively. However, brands need to ensure that the 3D content aligns with their messaging and brand identity to truly resonate with their target audience.”

Discussing more about the challenges faced by the industry, Lokhande said, “The lack of consistent regulations and policies, which fail to adhere to global standards, presents a significant challenge. Prioritizing longer duration contracts that focus on building city infrastructure, rather than short-term contracts solely driven by advertising revenue, should be given priority to overcome this issue.”

Adding on, Gupta said, “The demand for OOH campaigns is slightly different from TVC campaigns and the agencies must do in-depth research before designing OOH campaigns to meet the expectations of the targeted audience. The agencies and brands are investing heavily in OOH campaigns but the measurement of ROI of these campaigns is not defined. Apart from this, agencies must prepare themselves for the timely execution of OOH campaigns in tier cities. The real estate sector is majorly investing in OOH campaigns and has hired creative agencies who are designing content for them.”

Mentioning the increase in AdEx in upcoming years, Gupta said, “Undoubtedly, the investments in OOH campaigns have increased immensely in the last couple of years. The overall increase in several malls and airports has resulted in more investments in the medium. Moreover, the brands are willing to invest the same amount of money across India, Hong Kong and other Southeast Asian countries, to cater to the audience demand across the world.”

“The future of DOOH lies in the integration of data analytics, programmatic advertising, and real-time content delivery. At OSMO we have been able to challenge the traditional methods of OOH planning by extensive use of AI and ML. This has been possible due to the availability of mobility & audience data touchpoints. The integration of DOOH with mobile and online platforms helps us create seamless and integrated brand experiences,” said Kapdi.