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OOH Industry Expects Revenue Jump Of 20-40% As Festive Season Gains Momentum

Industry leaders foresee a vibrant festive season for OOH advertising, emphasising the power of data-driven strategies, immersive experiences, and hyper-local content, as brands are capitalising on heightened consumer engagement and foot traffic.

| Published on October 18, 2024

OOH Industry Expects Revenue Jump Of 20-40% As Festive Season Gains Momentum

As the festive season unfolds, India’s streets are bustling with energy. From bustling markets to vibrant decorations, this period is not just about celebrations but also an opportune moment for brands to connect with consumers. Out-of-home (OOH) advertising emerges as one of the most crucial mediums during these times, capitalising on the increase in footfall and consumer activity across urban and rural areas alike. 

For businesses, the period between Dussehra and Diwali offers a strategic window to boost visibility and sales, creating high-impact campaigns that resonate with the festive spirit. According to industry leaders, in a season when every brand is vying for attention, OOH has once again become a game-changer, amplifying brand presence in public spaces where audiences are most engaged.

Industry leaders are expecting a revenue jump of 20%-40% this festive season and they also noted that brands often ramp up their outdoor ad budgets by 20-30% during this period. Categories like e-commerce, FMCG, automotive, and fashion have become the top spenders this festive season, seizing the opportunity to capture consumer attention through strategic placements at malls, local markets, and transit hubs. Moreover, Digital OOH (DOOH), in particular, has seen notable growth. 

Another key trend this season is the focus on hyper-local, culturally relevant advertising. Brands are increasingly leveraging real-time data to deliver personalised experiences, ensuring their campaigns cut through the clutter. 

Key trends shaping OOH advertising during the festive season

Haresh Nayak, Founder and CEO, Connect Network
Haresh Nayak

Haresh Nayak, Founder and CEO, Connect Network said that this festive season, as brands aim to capitalise on consumer spending and market share, the competition will be fierce, driving up both clutter levels and costs. To maximise visibility in this high-stakes environment, brands are increasingly turning to data-driven strategies and advanced technology to optimise the spends. 

“The use of Digital OOH, immersive experiences, and clutter-breaking creative ideas will be at the forefront. We expect a surge in dynamic, hyper-local content and experiential campaigns that leverage real-time engagement to cut through the noise, ensuring brands capture consumer attention in a saturated marketplace,” he added. 

Jayesh Yagnik, CEO, MOMS Outdoor
Jayesh Yagnik

Striking a similar tone, Jayesh Yagnik, CEO, MOMS Outdoor, said that today’s OOH landscape is rapidly evolving with key trends shaping its future. Digital OOH is on the rise, featuring digital billboards and interactive ads that enable real-time consumer engagement. Advertisers are optimising placements through data-driven targeting, leveraging location-based and behavioural insights. 

“Sustainability is increasingly important, with a demand for eco-friendly advertising solutions. Additionally, hyperlocal content is tailored to local languages and cultures for community engagement. Technology plays a significant role, with (AR) and (VR) enhancing interactive experiences. Transit advertising is expanding, hybrid campaigns are blending physical and digital elements (Offline to Online), and eye-catching 3D displays, along with culturally relevant ads, are making a higher impact,” he added. 

Amarjeet Singh Hudda, COO, Laqshya Media
Amarjeet Singh Hudda

Amarjeet Singh Hudda, COO, Laqshya Media underscored that apart from the traditional media this festive season, they’re seeing a stronger focus on digital out-of-home (DOOH) and programmatic advertising as brands seek more dynamic and data-driven ways to reach consumers. 

“Personalisation and interactivity are key trends, with campaigns increasingly tailored to specific audiences, locations, and times of day. Another trend is the growing use of high-impact formats in high-traffic areas like malls, transit hubs, and marketplaces, where brands can engage consumers on the move. Brands are also integrating QR codes and AR experiences to make OOH ads more engaging and measurable,” he added. 

Rajesh Radhakrishnan, Co-Founder and Chief Marketing Officer at Vritti iMedia
Rajesh Radhakrishnan

Similarly, Rajesh Radhakrishnan, Co-Founder and Chief Marketing Officer at Vritti iMedia, highlighted that the festive season of 2024 has brought a renewed focus on innovative and engaging OOH strategies. DOOH and Audio OOH have become pivotal, especially in high-footfall locations like bus stations and fairs. 

“Brands are tapping into large-scale rural and semi-urban activations, where footfall is naturally higher during pilgrimages and local festivals. Another key trend is the increase in ads targeting women, particularly in states like Karnataka and Maharashtra, where female passengers benefit from free public transport. Brands are using geofencing to precisely measure the impact of their OOH ads, capturing consumer attention in transit hubs such as bus and railway stations,” he added. 

Top spenders in OOH this festive season

Hudda said that during the festive season, brands typically increase their OOH ad budgets by 20-30% compared to regular months. This period is crucial for visibility, and OOH is a key medium for amplifying campaigns across multiple touchpoints. 

“E-commerce, FMCG, consumer electronics, and automotive brands tend to be the biggest spenders. We also see a surge from the retail and banking/finance sectors, with festive sales and special offers driving their need for impactful outdoor visibility,” he said. 

“The festive season accounts for a significant chunk of our annual revenue, typically contributing 35-40% of our total ad revenue. This period sees a massive surge in demand for premium inventory and high-impact locations, making it one of the most lucrative times for outdoor advertising,” Hudda added. 

Similarly, Yagnik stated that during the festive season, brands typically increase their OOH ad budgets by 20-30% year-on-year, driven by higher consumer footfall and festive shopping. Top spenders  include e-commerce, FMCG, automotive, retail and fashion, financial services such as credit cards.

He added, prime locations such as malls, local markets and highways see heightened demand, and digital OOH (DOOH) formats are becoming more popular during this period.

Meanwhile, Nayak emphasised that during the festive season, brands typically increase their outdoor ad budgets by 15-25% year-on-year, recognising the crucial role OOH plays in driving high-impact visibility, but of the categories are active during this period and industry sees almost 40% of industry spends happen in this period. 

“Top spenders include categories such as fashion and lifestyle, FMCG, consumer electronics, e-commerce, automobiles and large retail players heavily invest in OOH to capitalise on the festive shopping surge, aiming to engage consumers through dynamic, high-traffic locations and impactful campaigns,” he said. 

Radhakrishnan said that brands typically increase their outdoor advertising budgets by 20-30% during the festive season compared to the rest of the year. This surge is fuelled by the consumer excitement around festivals and the need to capitalise on high foot traffic in both urban and rural areas. 

“Sectors like BFSI, FMCG, healthcare, and telecom are among the top spenders on OOH ads. There is also growing interest from automotive and agriculture brands, as they aim to reach audiences in transit hubs and rural locations where footfall spikes during festivals,” he added.

Revenue growth expectations

Nayak said, “The festive season contributes significantly to our agency’s revenue, accounting for approximately 30-35% of total annual OOH revenue. This period sees a surge in demand for premium locations and creative ad formats, making it a critical time for maximising both visibility and returns.”

On the other hand, Radhakrishnan said, “The festive season is a crucial period for our agency, accounting for nearly 40-50% of our annual ad revenue. This spike is driven by the sheer volume of campaigns during festivals like Ganeshotsav, Durga Puja, Diwali, and Christmas, where brands seek maximum visibility across key locations, especially in rural and semi-urban areas where footfall significantly increases during these times.”

“We anticipate a revenue growth of 30-40% during the last quarter of 2024, reflecting the strong festive sentiment and increased brand engagement in outdoor activations,” he added. 

Furthermore, he went on to say that with India’s post-pandemic resurgence, consumer confidence is high, and brands are keen to make a big impact, particularly through DOOH and Audio OOH platforms that offer dynamic and flexible advertising options. 

Meanwhile, Yagnik said, “The festive season is crucial for OOH, with brands investing heavily to stand out. In 2023, we saw nearly 20% revenue growth during this period, and we expect 2024  to deliver similar results as brands continue to seek strong audience connections.”

Hudda said that they are optimistic about double-digit growth this festive season, expecting a 15-20% increase in revenue compared to the previous year. 

“The strong post-pandemic recovery in consumer sentiment and increased brand spending across categories have contributed to this expectation. Our diversified portfolio across static and digital OOH also positions us well to capture the growing demand,” he added. 

Nayak stated that key insights from previous years include the importance of hyper-local targeting and real-time flexibility in campaigns, allowing brands to adapt their messaging based on consumer behaviour and market dynamics. 

“By leveraging data analytics, we have improved audience engagement and response rates. Currently, the most in-demand ad spaces are large format billboards, DOOH, Ambient media, and high-traffic mall advertising, particularly in urban areas where consumer footfall is highest during the festive season. These formats allow brands to create impactful, dynamic campaigns that resonate with the festive spirit,” he added. 

Radhakrishnan said, “One of the key insights from previous years is the importance of agility. Brands are increasingly making last-minute changes to their campaigns, and our ability to swiftly adapt DOOH platforms like the Audiowala Bus Stand has been a critical advantage. In terms of demand, transit hubs such as bus stations, railway stations, and locations with high foot traffic during fairs and pilgrimages are seeing the most interest from advertisers. We have also focused on optimising our geofencing capabilities to provide brands with real-time data on campaign performance.”

Yagnik mentioned that based on previous insights, they have implemented several strategies to drive better results. 

“Data-driven targeting has allowed us to optimise placements by focusing on consumer behaviour and regional relevance, ensuring ads resonate during key festive periods. We have also expanded the use of dynamic and interactive content through digital OOH formats, which have proven to engage audiences more effectively,” he said. 

“Prioritising premium locations such as malls, airports, and high-traffic urban areas has further boosted campaign performance. Currently, the most in-demand ad spaces include digital billboards, transit hubs like airports and metro stations, shopping malls, and highway billboards, all of which see increased demand during the festive season due to higher consumer activity and travel,” he added. 

OOH Mediums In Demand

Nayak said, “We are seeing a growing interest in OOH from categories such as fashion and lifestyle, automobile, consumer durable, liquor and OTT platforms. This demand is increasingly focused on a combination of static and DOOH mediums. However, static formats remain popular for brands looking to establish a lasting presence, especially in high-traffic areas during the festive season. The combination of both formats enables brands to maximise their reach and impact across diverse consumer touchpoints.”

Radhakrishnan said that there is growing interest across categories like BFSI, FMCG, telecom, and healthcare for outdoor advertising. However, there’s a noticeable shift towards Digital OOH and Audio OOH, especially in high-traffic areas. 

“Static mediums are still relevant, but the flexibility and dynamic nature of DOOH are proving to be more attractive to brands looking to engage audiences in real-time and with targeted messaging. Additionally, sectors like agriculture and automotive are increasingly opting for DOOH campaigns in rural markets,” he added. 

Yagnik also mentioned that during the festive season, sectors like FMCG, automobiles, e-commerce, real estate, and consumer electronics invest heavily to engage consumers, a trend expected to continue. OTT platforms have also significantly increased spending in recent years.

“The OOH industry has evolved beyond static sites, leveraging DOOH (Anamorphic + CGI + digital innovation ) and new technologies to boost consumer recall. Transit media (Metro + Train + Vande Bharat) is the new impactful medium, reaching wider areas and effectively covering entire cities,” he added. 

Hudda highlighted that while traditional static billboards remain in demand for sheer visibility, there’s a clear shift towards Digital OOH, especially in urban centres. Brands are attracted to the flexibility and real-time engagement that DOOH offers, enabling them to adapt campaigns based on festive sales or promotions.

Challenges arising for OOH this festive season

Hudda explained that one of the main challenges this season is the increased competition for prime locations, leading to higher inventory costs. 

“Brands are also pushing for more measurable results, which makes data integration and audience insights more critical than ever. Additionally, regulatory hurdles in certain regions can limit the scale or placement of large-format OOH ads. Despite these challenges, OOH continues to be a key medium for reaching consumers during the festive rush” he said.

Yagnik said that OOH has always faced challenges with infrastructure, policy changes, and regulations by authorities. Despite this, it remains an impactful medium for brands. 

“Measurement has been a key area of focus for brands in OOH, and now, the industry is reaching a point where it can confidently speak the language of measurement, addressing these long-standing concerns,” he added. 

Nayak pointed out that this festive season, one of the most significant challenges facing the OOH advertising industry is inventory saturation in premium locations, which drives up costs for brands. 

“With intense competition for consumer attention, it’s imperative for brands to deliver innovative and engaging content that not only captures interest but also resonates deeply with audiences to truly stand out in a crowded marketplace,” he added. 

On the other hand, Radhakrishnan said that one of the biggest challenges is the pressure of last-minute campaign changes from brands. The fast-paced and dynamic nature of today’s media landscape means that brands often switch platforms or update campaign elements right before launch, putting pressure on vendors to adapt quickly. 

“Another challenge is the increasing competition from digital and social media platforms. However, this also opens up opportunities for mediums like DOOH, which can offer flexibility and rapid updates to keep pace with these changes,” he added.

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