Why’s OOH on every advertiser’s playlist?  

From billboards to big impact, OOH is acing its game with digital in the mix and the numbers to tell the story. The sector is projected to grow at a CAGR of 10% through 2026, as per the recent dentsu-e4m Digital Advertising Report, on the back of aggressive adoption by advertisers. 

Last year, analysts had expected the medium to grow with a steady spending share of 2 per cent over the next few years, characterised by a compounded growth rate of 8.49 per cent but the speedy recovery of OOH has now exceeded industry expectations. 

This renewed interest in OOH advertising has been attributed to several factors, including the adoption of innovative formats like digital displays, airport billboards, and digital OOH (DOOH), stated the dentsu-e4m report. As per industry observers, the 2024 General and Assembly elections also played a key role, with a surge in political advertising contributing significantly to the sector's growth. 

Reacting to findings of the report, Rajesh Radhakrishnan, Co-Founder & CMO of Vritti iMedia said, “Transit environments/hubs like bus stations, railway stations and airports - being largely weather-controlled - are ideal for DOOH, enabling hyper-local targeting and real-time audience engagement.”

The report also stated that infrastructural development continues to unlock opportunities for transit and metro media, while the refurbishment and expansion of airports in key markets contribute to inventory growth. 

Shrikant Shenoy, SVP of Lodestar UM said, traditional OOH offers a diverse range of formats, constantly evolving and only limited by the imagination of vendors and advertisers. One key driver of OOH growth has been the government's focus on infrastructure development. With better roads and expanded road networks, new advertising opportunities emerge, enhancing visibility and reach. This creates a self-sustaining cycle. Further, more advertising options attract greater investment from brands, which in turn fuels the medium’s overall expansion.

Haresh Nayak, Founder and CEO of Connect Network foresees India’s OOH industry set for sustained growth overall. “These trends position Indian OOH for sustained double-digit growth, increased digital integration, and a stronger role in omnichannel marketing strategies.”

He further elaborated that their internal study, based on tenders, new media expansions, and industry benchmarks, indicates that the OOH industry grew by at least 14% in 2024.

Roadblocks

OOH continues to show consistent growth, although the pace has slightly slowed from 12% in

2024 to 10% in 2025. 

Shenoy suggested that rather than a decline in OOH, it’s more of a resurgence in other mediums, leading to some ad spends shifting. 

“OOH AdEx remains a bit of a grey area due to the absence of a reliable third-party measurement system, unlike TV, which has TAM and BARC tracking ad spends. With digital, the landscape is also somewhat unclear, as we largely rely on vendors for data. Pinpointing the exact factors driving shifts in ad spending is challenging, but a key reckoning is that digital and TV, in particular, have undergone a kind of renaissance,” he added.

Television has seen a resurgence with the rise of OTT and connected TV, as per him. “The decline in traditional TV viewership, as people moved to digital screens, has been offset by connected TV, which allows advertisers to track audiences and create targeted campaigns similar to digital. This evolution has helped TV redefine itself.”

He also pinpointed that print, too, has carved out a strong position, especially in an era of fake news, where it is perceived as a trusted and credible medium. Advertisers see print as a safe space to invest, free from misinformation concerns.

Nevertheless, this isn’t a permanent trend and digital will likely complement OOH, helping it bounce back and regain its growth momentum.

Radhakrishnan pointed out that while the slight slowdown indicates a need for caution, the overall outlook for the Indian OOH industry remains positive.

“A prime reason could be, the economic slowdown led by inflation and restricted urban growth in consumer segments slightly limiting the OOH advertising. Also, changes in local regulations or delays in policy implementations can impact the OOH sector.”

While there is a slight deceleration in growth, the Vritti Media executive is of the opinion that the Indian OOH industry is poised for significant expansion, driven by technological innovations and evolving consumer engagement strategies.

Key Sectors in Outdoor

Key sectors such as FMCG, Automobile, BFSI, Real Estate, Retail, and Media & Entertainment have extensively leveraged OOH in early 2024, highlighting its relevance across diverse industries, said the dentsu-e4m report. This dynamic environment positions OOH as a vital component of the advertising mix, primed for sustained growth.

As per the report, Consumer Durables invest nearly 10% of their media budgets towards OOH. This is followed by the Education sector with 7%, E-commerce (5%), Pharmaceutical (5%), Retail (5%). Auto, M&E, Telecom, BFSI dedicate nearly 4% each. 

Shenoy highlighted the fact that categories like FMCG, which were traditionally more TV- or digital-driven and not heavily invested in OOH, are now recognising its potential, especially in driving impulse purchases. Contextual advertising is playing a bigger role, making OOH a compelling option for these brands. 

“Additionally, the growth of modern trade has had a significant impact. A lot of OOH media, particularly placements just outside or even inside stores, has expanded in tandem with the rise of these retail formats,” he said.

As per Nayak, new tenders in airports, transit hubs, and city-wide projects expanded premium advertising opportunities. The advertiser mix also evolved, with emerging sectors like EV and mobility brands increasing their OOH investments, while traditional sectors like real estate saw a strong resurgence.

Digital + OOH = Formula for success

The only media categories with a promising growth forecast through 2026 are digital and OOH, which reflects the Indian advertising industry's move toward platforms that provide more flexibility and involvement. Advertisers are increasingly adopting data-driven and technology-enhanced strategies, emphasizing location-based planning and measurable outcomes in OOH campaigns.

Digital OOH has been a big driver in the sense that it has simply increased the number of options available to advertisers, as per Shenoy. It has made out-of-home that much more interesting and most important more dynamic. 

One can literally use out-of-home as a third screen, where the primary screen is the television, the secondary screen can be the mobile and the third screen is OOH.

“The OOH industry has become more structured than it used to be, though measurement remains a significant challenge. For a long time, and even now, there has been a lack of reliable metrics to assess OOH performance, making investment decisions largely intuitive rather than data-driven. However, there has been progress. Efforts to implement measurement systems have led to the development of tools that evaluate factors like creative effectiveness and site traffic,” Shenoy assessed. 

Moreover, he said, “Many agency networks, including ours, have introduced tools to improve accountability. The role of OOH in the overall media mix is now better understood, aided by advancements in market mix modeling, though there is still room for further refinement.”

“Digital and OOH are evolving into a powerful synergy, blending OOH’s large-scale visibility and trust with digital’s precision targeting and real-time adaptability. This combination enhances brand awareness, engagement, and conversion, allowing advertisers to deliver contextually relevant, data-driven campaigns,” Nayak shared. 

According to the report, DOOH is still a key growth driver because of its eye-catching, high-impact displays, which are becoming more and more well-liked in all markets. The increasing integration of digital on-road displays and destination DOOH into media plans underscores the increasing proportion of digital formats in OOH strategy.

Furthermore, Nayak believes that DOOH’s programmatic capabilities enable real-time messaging, while mobile integration bridges offline-to-online engagement. As brands seek holistic, omnichannel strategies, OOH’s credibility and scale, paired with digital’s agility, will drive the fastest and most sustainable ad growth.

“The future of OOH advertising in India appears promising, especially with the integration of digital technologies. DOOH is gaining momentum globally and in India. It is expected to account for over 30% of total OOH ad spend by 2026,” concluded Radhakrishnan.