e4m-dentsu report: Why OOH is the only traditional medium still growing

Out-of-home (OOH) advertising is the only traditional medium expected to grow over the coming period, according to dentsu-e4m Advertising Report 2026 released recently. The report projects the medium to expand at a 3% CAGR by 2027 and continue to maintain its 4% share in the advertising pie, supported by the scaling of digital OOH networks, modernised transit infrastructure and growing demand for high-impact urban visibility.

OOH AdEx stood at Rs 4,724 crore in 2025, accounting for 4% of the total ad expenditure, placing it alongside other traditional formats such as print, radio and cinema, as well as newer digital-first channels. In 2024, OOH AdEx was Rs 4,256 crore, also commanding a 4% share.

In the 2025 edition, the dentsu-e4m report stated that OOH ad spends reached Rs 3,800 crore in 2023 and projected the medium to grow at a CAGR of 10% through 2026. That projection was backed by a sharp rise in political advertising during the 2024 general and assembly elections, increasing adoption of DOOH formats, and the rapid expansion of infrastructure-linked inventory across metro systems, airports and transit networks. The 2025 report also underlined that destination DOOH and digital on-road displays were being integrated more actively into media plans, reflecting a growing share of digital formats within OOH strategies. It further noted that advertisers were adopting more data-driven approaches, with a greater emphasis on location-based planning and measurable outcomes.

While the report’s forecast reinforces OOH’s resilience in a fragmented media environment, the latest numbers also highlight a shift in how the industry is reading OOH’s next phase. In fact, industry leaders argue that the most important part of the story sits outside the published numbers.

 Also read: dentsu-e4m report: Indian advertising industry to grow at CAGR of 7.4% by 2027

dentsu-e4m Report: Digital, OOH only media sectors with positive growth outlook until 2026

From visibility to measurable impact

OOH players say the next year will be defined by how quickly the industry can move from legacy planning methods to technology-led, outcome-driven strategies.

Talking about what will drive the next phase of growth, Fabian Cowan, Director, Connect Network, says in a world of fluctuating digital trust, OOH will continue to remain a key medium for brand stature and fame. He adds that the medium’s ability to create standout moments in the real world that carry shareable power will be further exploited by brands.

He also points to the non-intrusive nature of OOH and its seamless integration into daily life as a major advantage, positioning it as a brand-safe, trust-building medium that will continue to attract advertisers.

In an emerging trend, Cowan suggests OOH may evolve into what he calls “the ultimate prompt”, acting as a real-world trigger for AI-driven discovery journeys by sparking curiosity and sending consumers into search, social or retail with greater confidence.

Cowan adds that as OOH continues to evolve and grow, their priorities will be to help brands navigate the complexity of the medium and strengthen brand-building strategies by unlocking the full potential of OOH innovation.

“At Connect Network, we are harnessing these forces to make OOH even more adaptable, transparent, future ready and elevating its stature within the advertising mix. The company is focused on driving AI-enabled planning optimisation, delivering measurable impact and eventually even providing clients with a super intelligent DIY platform that spans from metros to Tier-7 locales,” he says.

Tier-2 and Tier-3 Push

“OOH in India is growing faster than we think,” says Yuvrraj Agarwal, the Chief Strategy Officer of Laqshya Media Group.

According to him, the real momentum today is coming from Tier-2 and Tier-3 India, which is increasingly becoming the consumption engine of the country. Infrastructure expansion, mobility growth, retail penetration and regional brand investments are accelerating OOH adoption at scale in these markets.

If the industry looks beyond organised metro inventory and includes transit media, municipal inventory, retail OOH and the fast-expanding digital screen ecosystem across emerging cities, Agarwal estimates the Indian OOH industry is closer to Rs 7,000 crore and growing at 10 to 12% annually.

He adds that the medium continues to face structural challenges such as fragmentation, state-level policy frameworks and the absence of a unified national measurement currency, but these are growing-market challenges rather than indicators of a declining medium.

“What makes OOH increasingly powerful today is the convergence of three forces, digitisation of inventory, expansion into Bharat markets and data-led planning and programmatic DOOH,” he says.

Together, these forces are transforming OOH from a visibility medium into a measurable brand-building platform.

“As attention fragments across screens, OOH remains the last unavoidable medium,” Agarwal adds.

Brand owners sharpen the playbook

For advertisers, OOH is increasingly becoming a high-impact medium that delivers maximum value when integrated with digital and social amplification.

Rajiv Dubey, Head of Media and VP of Marketing at Dabur, says OOH works best when it is used strategically rather than as a uniform spend bucket.

“Our approach next year is to invest selectively in premium, high-attention environments and digital OOH, especially around key launches and seasonal moments for brands like Chyawanprash and Real Juice,” he says.

Dubey adds that Dabur’s presence at religious congregations, railway stations and large-scale wall paintings will remain an important pillar of its OOH strategy.

Instead of increasing spends across the board, he says the focus is on formats and locations that deliver disproportionate brand impact and cultural visibility, ensuring OOH continues to drive both reach and relevance.

A medium being structurally redefined

Even as the dentsu-e4m Advertising Report 2026 pegs OOH’s growth at a 3% CAGR till 2027, the industry’s on-ground view suggests the medium is entering a structurally different phase, one where growth is not limited to the billboard-heavy metro model.

The next wave of OOH is being shaped by digitisation, a wider inventory base across transit and retail ecosystems, and expansion into Bharat markets where consumer demand is rising and infrastructure is catching up quickly.

OOH may still sit at a 4% share on paper, but the medium’s roadmap indicates that it is evolving from a traditional visibility channel into a scalable and measurable platform that brands are using for both stature and performance-linked discovery.