e4m-dentsu report: How OOH remains the only growing traditional ad medium
Experts say OOH’s strength is driven by three converging forces—digital inventory, expanded presence in Bharat markets, and data-driven programmatic planning
Pitch Feature
Out-of-home (OOH) advertising is projected to be the only traditional medium to see growth in the coming period, according to the dentsu-em Advertising Report 2026 released recently. The report forecasts the segment to expand at a 3% CAGR by 2027 while maintaining a 4% share of the total advertising pie, supported by the expansion of digital OOH networks, upgraded transit infrastructure, and rising demand for high-impact urban visibility.
OOH AdEx was recorded at Rs 4,724 crore in 2025, accounting for 4% of total ad spending, placing it alongside other traditional formats such as print, radio, and cinema, as well as newer digital-first channels. In 2024, OOH AdEx stood at Rs 4,256 crore, also holding a 4% share.
The 2025 edition of the dentsu-em report noted that OOH ad spending reached Rs 3,800 crore in 2023 and projected growth at a CAGR of 10% through 2026. This was largely driven by increased political advertising during the 2024 general and assembly elections, wider adoption of DOOH formats, and rapid expansion of infrastructure-linked inventory across metro systems, airports, and transit networks. The report also highlighted that destination DOOH and digital on-road displays were increasingly integrated into media plans, reflecting a higher share of digital formats within OOH strategies. Advertisers were placing more focus on data-driven planning, location-based strategies, and measurable outcomes.
While the report underlines OOH's resilience amid a fragmented media landscape, industry insiders note that the most significant developments go beyond published numbers.
From visibility to measurable impact
OOH stakeholders say the next phase will be defined by the shift from legacy planning to technology-driven, outcome-focused strategies.
Fabian Cowan, Director, Connect Network, highlights that in a world of fluctuating digital trust, OOH will remain vital for brand stature and visibility. He notes the medium’s ability to create real-world standout moments with shareable power is an opportunity for brands.
He adds that OOH’s non-intrusive integration into daily life positions it as a brand-safe, trust-building medium attracting advertisers. Cowan predicts OOH could evolve into "the ultimate prompt," acting as a trigger for AI-driven discovery by sparking curiosity and guiding consumers into search, social, or retail channels with confidence.
Cowan explains that OOH’s priorities include helping brands navigate medium complexity and enhancing brand-building strategies by unlocking the full potential of OOH innovation. "At Connect Network, we are leveraging these forces to make OOH adaptable, transparent, and future-ready, elevating its role in the advertising mix. Our focus is on AI-enabled planning, measurable impact, and even a super-intelligent DIY platform spanning metros to Tier-7 markets," he says.
Tier-2 and Tier-3 push
"OOH in India is growing faster than perceived," says Yuvrraj Agarwal, Chief Strategy Officer, Laqshya Media Group. He points out that the real momentum comes from Tier-2 and Tier-3 markets, now key drivers of consumption. Infrastructure growth, mobility, retail penetration, and regional brand investments are accelerating OOH adoption at scale in these regions.
Considering transit media, municipal inventory, retail OOH, and the expanding digital screen ecosystem in emerging cities, Agarwal estimates the Indian OOH market is closer to Rs 7,000 crore, growing at 10–12% annually. He notes structural challenges such as fragmentation, state-level regulations, and the lack of a unified measurement system, but calls these typical growing-market issues rather than signs of decline.
"OOH’s strength today comes from three converging forces: digitisation of inventory, expansion into Bharat markets, and data-driven planning and programmatic DOOH," Agarwal says. These factors are transforming OOH from a visibility medium into a measurable brand-building platform. "As attention fragments across screens, OOH remains the last unavoidable medium," he adds.
Brand owners sharpen the playbook
For advertisers, OOH is becoming a high-impact medium that delivers the most value when paired with digital and social amplification.
Rajiv Dubey, Head of Media and VP Marketing at Dabur, says OOH works best when used strategically rather than uniformly. "Next year, we plan to invest selectively in premium, high-attention spaces and digital OOH, particularly around key launches and seasonal moments for brands like Chyawanprash and Real Juice," he explains.
Dubey notes that Dabur will continue leveraging religious gatherings, railway stations, and large-scale wall campaigns as key pillars of its OOH strategy. Instead of blanket spending, the focus is on formats and locations that provide disproportionate brand impact and cultural visibility, ensuring OOH drives both reach and relevance.
A medium being structurally redefined
Even as the dentsu-em Advertising Report 2026 projects OOH growth at 3% CAGR through 2027, industry insiders see a structurally different phase emerging—beyond the billboard-heavy metro model.
The next wave is shaped by digitisation, wider transit and retail inventory, and expansion into Bharat markets where consumer demand and infrastructure growth are accelerating. While OOH may maintain a 4% share on paper, its roadmap shows it evolving from a traditional visibility channel into a scalable, measurable platform supporting both brand stature and performance-driven discovery.
