Budget 2025: OOH looks forward to infra push, tax sops on the road ahead

The Out-Of-Home (OOH) industry thrives on innovation that’s directly influenced by the spending capacity of people in a given area. Increased investment in roads, transit systems, and smart city projects would create new opportunities for OOH placements and innovations, boosting brand visibility and engagement and profits for media owners. Looking forward to the Union Budget 2025, industry leaders believe that a higher budget allocation for infrastructure would boost ad revenues and accelerate innovation in digital and programmatic OOH advertising in the years to come. 

FICCI-EY estimates suggest that the OOH segment will reach revenues of Rs 54.3 billion by 2026, 40% of which will come from transit media. “The difficult-to-reach affluent audiences at airports, in premium trains and commercial and entertainment establishments, would provide an impetus for marketers to invest in the OOH medium,” the report observed. 

The report also emphasised the importance of entertainment, sports and cultural venues in tier 2 and 3 cities, which would help add to the addressable OOH inventory and revenues in the country. OOH industry leaders are also echoing the importance of infrastructure development in their expectations from the upcoming Union Budget 2025. 

“India is amongst the fastest growing countries globally and the duty of the budget is to enable the ambitions of young Indians. Capital expenditure towards infrastructure development has to be increased drastically and this has to be visible on the ground,” says Shriranga Sudhakara, Founder & Managing Director of Vyoma Media. 

He further lists the core areas where the budgets should be allocated for maximum benefits to the OOH industry: “Indian Railways, airports, metro transportation, bus corridors and NHAI have to get maximum capital outlays. The new infrastructure will indirectly benefit many stakeholders and OOH will be one of the beneficiaries.”

When it comes to the development of infrastructure, the government must focus specifically on the facilities and structures in tier 2 and 3 cities. 

“With urbanisation spreading to smaller cities, OOH advertisers want better infrastructure support, particularly in tier-2 and tier-3 cities. The government is expected to support the development of more advertising spaces and digital screens in these areas, opening new opportunities for brands and driving economic growth in smaller towns, shares G. Vinoth Kumar, Sales & Operations Head of the Chennai-based Adinn Advertising Services Ltd.

Currently, 18% GST is applied to digital advertising, a critical component that’s expected to shape the next phase of OOH advertising in India and around the globe. “Our only expectation is that the government shouldn’t increase GST from its prevailing tariff,” shares Pramod Bhandula, Executive Chairman of JCDecaux India.

According to GroupM, Digital OOH will account for 42% of total OOH revenue globally in 2025, highlighting the growing impact of technology in driving the next wave of OOH advertising. Industry observers believe DOOH is a key area where financial incentives or grants would encourage innovation by brands and media owners.

“Investments in Digital OOH infrastructure, such as subsidies for digital billboards, AI and IoT-based solutions, and incentives for green advertising, will promote sustainability and modernisation. Public-private partnerships (PPP) in smart city projects can further expand DOOH opportunities. Additionally, tax benefits for private investors and lower interest rates for OOH companies will encourage funding and expansion, positioning the sector for long-term growth,” says Harvinderjit Singh Bhatia, Co-founder and CEO, Radiowalla Network Limited.

Incentives in the form of financial aid, infrastructure development, and policy frameworks are crucial to make the OOH industry more organised, says Rajesh Radhakrishnan, Co-Founder & Chief Marketing Officer of Vritti iMedia

He adds, “DOOH is inherently environmentally sustainable, aligning well with the government's vision of a green economy, as seen in its push for renewable energy, EVs, and non-fossil fuel initiatives. Prioritising DOOH within India's advertising landscape will significantly reduce environmental impact while fostering digital transformation.”