'Rise in DOOH inventory making tier 2, 3 cities integral to brand outreach strategies'

India's Out-of-Home advertising sector is undergoing a transformation, propelled by a surge in Digital OOH (DOOH) adoption and the increasing significance of non-metro markets. 

According to Fabian Cowan, Chief Growth Officer at Ideacafe.agency, DOOH now constitutes about 12% of the total OOH advertising pie, an encouraging indicator of its growing acceptance among advertisers across sectors.

“From real estate and FMCG to organised retail and consumer services, most categories now have a significant DOOH play,” Cowan notes, highlighting how the medium's flexibility and precision are winning over brands looking for impactful presence.

Tech: The game-changer

The integration of cutting-edge technologies like artificial intelligence, geotargeting, and real-time data is reshaping the way OOH campaigns are conceptualised, executed, and measured. “New technologies and data have already made a significant impact in the way the medium is bought and sold,” Cowan explains.

He adds that OOH, inherently built for high-impact visibility, becomes even more powerful when enhanced by data-driven precision. “When it happens at the right place, driven by data, at the right time, again data-enabled and in a unique way, driven by tech, the results can be beyond expectations.”

Non-metros: The new growth hubs

The spotlight is also shifting to India’s non-metro markets, which are emerging as fertile grounds for advertising innovation. Bolstered by infrastructure growth, a digitally active youth demographic, and rising disposable incomes, tier-2 and tier-3 cities are becoming increasingly central to brand outreach strategies.

“With a significant rise in DOOH inventory, these markets have become integral to OOH plans for brands,” Cowan observes, pointing out that advertisers are recognising the untapped potential in these regions.

A sector on the rise

The numbers speak volumes about the sector’s momentum. According to the EY Media & Entertainment Report, OOH advertising revenues in India more than doubled from Rs 2,600 crore in 2021 to Rs 5,900 crore in 2024. Several factors have contributed to this upward trajectory including advancements in adtech that support better measurement and efficiency, improved civic infrastructure, and enhanced collaboration between advertisers and local authorities.

“Social media integration possibilities and a much more educated, learned and inclusive approach by the civic authorities have certainly played a major role in this growth,” says Cowan.

But despite the promising growth, the industry faces structural challenges. The federal nature of governance means that local regulations for OOH advertising vary from state to state, limiting the potential for centralised, scalable policy solutions. Media fragmentation, too, remains a concern.

“Fragmentation in media ownership may stall adoption of adtech improvements and true digitised connectivity,” Cowan warns.

The road ahead

Looking forward, Cowan emphasises the need for cohesion. “Unifying the ecosystem and building a narrative for inclusive growth that benefits all stakeholders is the obvious way forward,” he suggests.