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Outdoor ad spends grow by 8% during H1 of 2013

Outdoor ad spends grow by 8% during H1 of 2013

Author | exchange4media News Service | Wednesday, Nov 20,2013 8:19 AM

Outdoor ad spends grow by 8% during H1 of 2013

According to Laqshya Media Research statistics on the outdoor advertising ad revenues, there has been a growth of 11 per cent for Q1 and 4 per cent growth during Q2 of 2013 over the same period in 2012, making it a total of 8 per cent growth for the H1 fiscal 2013 over 2012.

Despite the lingering economic uncertainty, OOH continues to grow – which is a positive sign for advertisers who want to reach out to people with billboards, bus shelters, huge gantries, foot-over bridges, and any other outdoor vehicles. Going by this analysis, the industry has every reason to be optimistic.

Sector-wise analysis of outdoor advertising spends:

Real estate upped its OOH investments most rapidly as compared to any other sector, making it the most dynamic category for the first half of 2013. The spends grew by 51 per cent as compared to H1 of 2012. The realty players from Mumbai and Delhi have been spending heavily in traditional OOH, whereas South-based players are also actively visible in premium ambient media such as airports.

The education sector with large focus on Q1 dominates the other category spends, though the spends have reduced compared to H1 of 2012.

In the media & entertainment category, TV channels, particularly the GECs, hold a substantial pie in the OOH share of spends.

Jewellery brands such as Tanishq has been spending heavily, along with South-based brands such as Malabar and Kalyan on their store launch across various towns using OOH to create awareness. There has been a 28 per cent rise in their spends observed this year as compared to H1 2012.

Many other sectors slightly exceeded their spends in the first half this year as compared to last year, making the overall OOH share of spends bigger and thus creating an 8 per cent growth as compared to last year. Categories such as banking, mobile handsets, airline operators, housing finance, life insurance, retail (particularly the innerwear segment) and healthcare saw greater growth as compared to last year’s first half.

Two-wheelers emerged as one of the most active spenders in the first half of 2013 as compared to the same time last year 2012, registering a growth of at least 50 per cent. Brands such as Hero Motocorp, Bajaj and Honda have captured the roads with larger than life displays for their two-wheelers.

The first half of this fiscal year 2013 also saw a decrease in spends by the top OOH spenders such as automobiles (four wheelers) and mobile services.

Commenting on the statistics and trend, Atul Shrivastava, COO, Laqshya Media Group said, “The overall OOH pie has grown 8 per cent this year as compared to same period last year. There has been a moderate growth in various other sectors, but OOH that has traditionally thrived on automobiles and mobile services took a hit. Big players in the four wheeler category such as Hyundai and Tata Motors-owned Jaguar Land Rover have been successfully banking on OOH long term sites to create brand salience. The only spike observed in the category was during the brand launch of Honda Amaze and Chevrolet Sail.”

Since Q3 is the festive quarter, it will now be interesting to see out of home gain even more momentum. During the festive season, brands usually announce a lot of discounts, offers and freebies. OOH media vehicles such as hoardings/ billboards, bus back panels, bus shelters and other street furniture are gaining as much importance as other forms of media such as print and digital.

The evident growth in both quarters Q1 and Q2 of 2013 as compared to the same period of 2012 reflects the progress the industry has made. With the usage of research and technology, advertisers are bound to be more confident about investing even more in the OOH space. 

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