Festive season lights up hope for OOH industry; 20-40% revenue jump expected

As the festive season brightens the country with vibrant celebrations, the outdoor media industry is gearing up for what seems to be the brightest quarter of the year. The period from Dussehra to Diwali and beyond is a crucial window for businesses across sectors to boost their sales and visibility.

According to OOH players, with India fully returning to normalcy post-pandemic, there's a renewed excitement for campaigns and a robust festive atmosphere. While the impact of Covid was still evident last year, this time the market is fully open.

"This festive season offers tremendous potential for the OOH industry, and we’re optimistic about strong demand across various sectors," says Amarjeet Singh Hudda, COO of Laqshya Media. He also notes a shift in brands' outdoor advertising strategies. Today, companies are no longer just seeking visibility—they’re embracing innovative approaches to engage consumers in an increasingly competitive market.

Revenue growth expectation

Festivals in India evoke strong emotions, making it the perfect time for brands to create emotional connections via advertising outdoors.

According to Jayesh Yagnik of Madison Outdoor Media, the festival season is crucial for the OOH business, contributing nearly 30-40% of the total annual revenue. In the last OND period, OOH expenditure increased by nearly 12% compared to 2022. In 2023, the sector saw nearly 20% revenue growth during this period, Yagnik said.

He expects the same or more this year.

Hudda too is hopeful of a good growth this festive season. “We are optimistic about achieving solid revenue growth in Q4 2024. Looking at the current momentum, I anticipate a double-digit growth compared to the same period last year. The festive season and increased consumer spending always drive a surge in advertising demand, and this year is no exception. Our OOH offerings have seen significant traction, and brands are allocating larger portions of their budgets to high-impact outdoor campaigns.”

Vritti Solutions, a rural marketing company, is optimistic about the last quarter of 2024, expecting revenue growth of 30-40% compared to last year. 

What’s trending this festive season?

Outdoor media owners say the buoyant consumer sentiment around festivals is giving brands the confidence to allocate more of their ad spend to OOH, and this trend will continue to drive growth for the entire industry in H2 2024.

“2024 has underscored the growing importance of personalisation and technology in OOH campaigns. Consumers today are more mobile, and their engagement patterns are shifting, leading brands to focus on more localised, real-time interactions,” shared Hudda.

Moreover, there is a clear shift in consumer behaviour toward sustainability. As a result, brands are placing more value on eco-conscious advertising solutions—whether through the use of energy-efficient digital screens or eco-friendly materials.

Hudda has also noticed a stronger demand for OOH in tier-2 and tier-3 cities, driven by rising consumer spending power in these regions and the expansion of brands beyond traditional metropolitan hubs.

Yagnik mentioned that 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. 

He further added, “Transit advertising is expanding and hybrid campaigns that blend physical and digital elements (offline to online) are also in demand. Also, eye-catching 3D displays, along with culturally relevant ads, are making a higher impact.”

Speaking from a rural perspective, Rajesh Radhakrishnan, Co-Founder & Chief Marketing Officer – Vritti Solutions, said, “Activations, like yatras (pilgrim journeys) and jatra (fairs) have increased significantly in rural and semi-urban areas. Traditional formats like wall or van painting are on the decline as brands explore more innovative platforms. Melas and fairs, where crowds gather in huge numbers, are becoming prime venues for large-scale campaigns.”

Who is investing in OOH?

To educate consumers and encourage last-mile involvement, FMCG, automotive, e-commerce, real estate, and consumer electronics industries are making significant investments this holiday season, say experts. It is anticipated that this pattern, which has been there for decades, will continue. Additionally, during the last two to three years, OTT platforms have seen a huge growth in investment.

Last year, categories like real estate, OTT platforms, jewellery, retail and e-commerce aggressively invested during the festival season, showing an average spending rise of 20-30% from 2022 to 2023. Yagnik anticipates this trend will continue into 2024.

According to Hudda, e-commerce continues to lead OOH spending. FMCG brands, especially those in food, beverages, and personal care, are ramping up their OOH presence to stay top of mind during this period of heightened consumer spending.

Also, the automotive industry, which has seen a robust recovery this year, is investing in OOH to showcase new launches and festive offers. Consumer electronics and smartphones also remain key drivers, given the surge in demand for new gadgets ahead of the festive season. Additionally, the financial services sector, particularly banks and NBFCs, is utilising OOH to promote special festive loan schemes and offers, which appeal to consumers looking to make big-ticket purchases.

Challenges this festive season

According to Radhakrishnan of Vritti Solutions, one of the problems that the media companies are facing is brands’ tendency to make last-minute decisions, which slows down the execution process. This is happening because the landscape for OOH has become more dynamic with the availability of multiple platforms such as print, TV, radio, online, social media, and OOH. This has made long-term planning more complex, resulting in pressure on vendors. Changes are often made at the last moment, as brands are keen to experiment and switch platforms quickly, adding another layer of complexity to execution. 

Hudda adds that another key hurdle has been the cost of technological upgrades. As digital OOH becomes more prevalent, the investment required to implement and maintain these digital networks has increased. This is particularly challenging in markets that are still getting accustomed to the value of DOOH, where the balance between cost and return on investment is critical.

Another challenge is fragmentation. With consumers moving across physical and digital spaces at a fast pace, ensuring consistent engagement across multiple touchpoints—whether it’s traditional OOH, DOOH, or even programmatic OOH—requires careful planning and execution.

Additionally, the regulatory environment remains a factor to consider, especially when it comes to obtaining permissions for large-scale installations or digital formats in certain areas. 

However, all the stakeholders believe these challenges also represent opportunities to innovate and further improve the effectiveness of OOH campaigns. 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,” said Yagnik.