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Indian OOH likely to grow at 10%: Dentsu Aegis Network forecast

20, June, 2017

Bureau, New Delhi

Indian OOH media is expected to witness 10% growth. While the highest growth is expected for digital i.e. over 35%, traditional formats like TV and cinema are analysed to grow around 12% and newspaper around 8%.

As per the recent Dentsu Aegis Network's Ad Spend Forecasts - June 2017, advertising spends in emerging markets continue to outpace developed economies. The advertisement spend growth in India is forecast to grow at 13% in 2017, and 12.2% in 2018 to reach US$7.4 billion. Indian OOH media is expected to witness 10% growth. While the highest growth is expected for digital i.e. over 35%, traditional formats like TV and cinema are analysed to grow around 12% and newspaper around 8%.

While talking globally, OOH media is expected to show low growth in the year ahead with only 2.9% and its share of global advertising spend by media for 2016-18 goes to 6.2%.

Based on data received from 59 markets across the Americas, Asia-Pacific, Europe, Middle East and Africa, the report has point to a more cautious economic outlook in 2017 than the previous year; with global ad spend growth falling from 4.8% to 3.8%. However, conditions are set to improve in 2018 with forecast growth in ad spend of 4.3%.

Commenting on the latest ad spend forecasts, Jerry Buhlmann, CEO of Dentsu Aegis Network, said, "We are reaching a tipping point in ad spend now as digital overtakes television, mobile overtakes desktop and paid search overtakes print. Digital and data must now be the default settings for advertisers. Evolving to people-based marketing rather than audience-based marketing and using data to increase addressability is essential for brands to manage tighter conditions in 2017 while positioning themselves for future growth."

"At the same time, the challenge for brands is to ensure that they are ready to embrace the potential of new innovation. As technologies such as virtual reality and voice activation become more prominent, brands must ensure that they remain relevant by creating new value for their consumers."

Kartik Iyer, MD, Carat India, commented, "India continues to be amongst the few countries seeing growth rates in double digits. While this may be slightly lower than past expectations owing to various market drivers like demonetization and GST, the growth is clearly expected to continue. Driving this growth is digital with a growth rate of over 35% which is far in excess of that seen by other more traditional media. And with digital quickly progressing on its path of becoming the Go To media for entertainment, this trend is also expected to continue. Other media like TV and cinema are expected to grow at around 12% while Radio and OOH should see a growth of 10% and Newspapers around 8%."

"Another medium that is driving growth is that of ambient (at over 15% growth rates). Considering the changing retail environment, the medium, in tandem with digital is becoming pivotal for delivering quality engagement with consumers."

Tags :  Dentsu Aegis Network Jerry Buhlmann Kartik Iyer Indian OOH ooh Media

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