The DOOH story: Are brands rethinking ROI?

India’s DOOH market is growing at 70 percent year-on-year, yet brand confidence is not keeping pace. Even as screens multiply across metros, marketers are re-examining the fundamentals of cost, attention and measurement, prompting a quiet shift back towards static OOH for assured visibility and clearer returns.

India’s out of home advertising market today stands at over Rs 6,500 crore and is growing at a steady 10 to 15 percent annually, with projections pegging it at Rs 7,900 crore by 2027. Within this, DOOH has emerged as the fastest growing segment, currently valued at around Rs 700 crore. Digital screens have expanded rapidly, touching nearly 1.5 lakh units in 2024, with close to 75 percent concentrated across the top 12 metro cities. Yet despite the scale up, DOOH still accounts for only about 12 percent of India’s total OOH spends. Industry leaders say the issue is not a lack of advertiser interest, but growing discomfort with how the medium is priced, packaged and measured.

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Static still has staying power

The certainty of uninterrupted visibility continues to work in favour of static OOH. With a single, non-shared message visible from a distance and across time bands, traditional billboards remain a preferred choice for brands focused on scale and long-term recall.

Static remains a powerful, high impact, non-shared medium that delivers unmatched visibility, says Aman Nanda, Chief Strategy Officer and Head of Marketing & HR at Times OOH. For many established brands, particularly those focused on long term brand building, static OOH continues to be a core pillar of media strategy and this is unlikely to change in the near future.

Nanda believes the strength of static lies in its simplicity and dominance in the visual landscape. Unlike rotating digital screens, static formats ensure the brand is always present, regardless of when the consumer passes by.

The way DOOH inventory is currently consumed has also emerged as a key concern. Most screens operate on tight loops featuring multiple advertisers, which limits actual exposure time.

Marketers are not moving away from DOOH because it lacks potential. They are stepping back because the way it is currently being deployed often dilutes impact instead of sharpening it, says Sumit Taneja, National Head-OOH at Interspace Communications. 

People see what is on screen at that moment and move on. If a brand does not appear at that exact point, the impression may be delivered technically but missed in reality. 

This challenge is amplified by oversupply.

Too many screens too little time

Digital screens have mushroomed across residential complexes, elevators, lobbies and transit points, shrinking exposure windows even further and increasing clutter.

Rajiv Dubey from Dabur believes this has weakened DOOH’s ability to function as a brand building medium. The 10 second or even 20 to 30 second slots that brands get on DOOH screens are not as effective as a static billboard that is visible all the time, he says. This inventory is sold like TV, but it is not TV. If it is treated as OOH, brands need much more screen time for their DNA to register.

Dubey adds that while Dabur continues to experiment with DOOH, its impact is often limited. Many times, it becomes more of a bragging point than something that delivers real brand impact. What works is a large billboard that is visible from a distance? DOOH can only be an addition to the media mix, not a brand building engine on its own, he says.

Measurement remains the missing link

Beyond visibility and clutter, measurement remains one of the biggest unresolved gaps. Unlike static OOH, where visibility is intuitive and easily understood, DOOH still lacks a common currency that advertisers can trust.

An off-record marketer from a leading FMCG company says internal scrutiny around DOOH spends is increasing. We are being asked to pay digital premiums without digital accountability. When you cannot clearly explain what that 10-second slot actually delivered, it becomes difficult to justify the spend. Static may be old school, but at least you know your brand is sitting there all day.

Complement not replacement

Despite the pushback, industry leaders caution against viewing this recalibration as a rejection of digital outdoor altogether. DOOH continues to find relevance in specific contexts, particularly where flexibility, dynamic messaging and contextual storytelling matter.

Cities like Bengaluru have seen strong adoption of digital bus shelters, while Mumbai continues to expand its roadside DOOH footprint. According to Nanda, the growth of DOOH in India remains fundamentally demand driven.

The biggest change will be due to the introduction of BMC policy as Mumbai’s high rental values help digital formats recover capital faster.  As per OOH experts, brands were holding back digital budgets due to unclear policies and inconsistent permissions. He believes the reduced fee structure will unlock these budgets in the next financial cycle.

While static remains the mainstream choice today, DOOH is emerging as a strong complement rather than a replacement, Nanda says. Both formats will continue to coexist, each serving distinct marketing objectives.

For now, brands appear to be prioritising certainty over experimentation. Until issues of pricing structures, clutter, loop management and measurement transparency are addressed, static OOH is likely to retain its dominance, with DOOH playing a more selective and supporting role in India’s outdoor advertising mix.