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OOH sector in India to bounce back despite COVID-19 setback

Though the COVID-19 pandemic has hampered the works of OOH, market research report sees positive future of the industry in terms of growth. The OOH sector saw a good year in 2019. As coronavirus has been at the forefront of everyone’s mind at the moment and India is under lockdown with stay-at-home advisory OOH is facing a major challenge.  The government’s stay at home mandate has made majority of corporate players pull off their campaigns, because all key touch-points such as airports, railway stations, metros, bus terminals and malls are shut! However, in the post-lockdown, according to market experts, the industry will witness a sluggish growth.

As per the FICCI-EY report titled ‘The Era of Consumer A.R.T. – Acquisition Retention and Transaction’, the OOH sector grew at 5 percent and reached Rs 39.1 billion in 2019. The growth was powered by airport advertising, metro station branding rights, and the Indian Railways’ push to drive non-fare revenue growth. The traditional OOH comprised 54 percent of revenues, while digital OOH (DOOH) grew on the back of screen volumes and increased interest from advertisers and contributed 2 percent of total revenues. Transit media continued to grow as more inventories became available and naming rights continued to be of interest to brands, reaching 39 percent of total revenues. The report cites that DOOH contributed 2 percent of total OOH revenues (Rs 1 billion) and is predicted to grow at a CAGR of over 33 percent to reach Rs 2 billion by 2022.

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