FICCI-KPMG-Report-13-FRAMES

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The power of a billion: Realizing the Indian dream
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Lack of adequate security measures
One of the major challenges facing the industry is the
lack of security measures, particularly in the street
furniture and transit media formats. This not only
delays campaigns and creates execution challenges
in these mediums but also adds to the overall cost.
The silver lining
With Foreign Direct Investments (FDI) in retail gaining
approval from the Central Government, there is
expected to be a spurt in the retail business spend in
advertising. Therefore, OOH will also garner a fair share
of the advertising pie, as the medium is very well suited
for the retail business. This factor will also help retail
communications firms and specialised shopper marketing
agencies to grow roots in Indian markets.
The integration of OOH advertising with other media has
led to an increase in its relevance. This has resulted in
an ‘integrated media’ approach being adopted both by
advertisers and media houses.
The upswing in spends by brands in retail communications
has benefitted the OOH industry. For example, a retail
chain, Pantaloon India, struck a deal with the radio network
Big FM - to air its programs in stores across the country.
Big Bazaar has a monthly in-store magazine - My World,
store window displays, ads on walls, floors, ceiling-high
banners, kiosks to run promotions for advertisers, television
screens and, more recently, piped-in radio stations. This
assists the OOH segment, which is still at a nascent stage,
to improve its share in the overall OOH ADEX pie. As
these kinds of integrated campaigns and innovation takes
hold, OOH has immense potential in terms of customer
involvement, interactivity and last mile conversion in the
future.
Also, the trend is visibly moving beyond traditional
arterial roads to a more demographically targeted
destination-based planning that is mapped with target
group movements. With increasing working population
and changing lifestyles, people are spending more time
outdoors leading to exponential growth of the transit
medium. This medium delivers greater frequency cost
- effectively, making it attractive to planners. Further,
businesses going beyond borders and cheaper air travel has
translated into more avenues for targeting upwardly mobile
audiences on the go. Local transit media is also welcoming
branding and interactiveness around communication
exercises.
Digital to drive OOH growth in
India
Digital out-of-home (DOOH) refers to dynamic media
distributed across place-based networks in venues
including cafes, bars, restaurants, health clubs, colleges,
arenas and public spaces. DOOH networks typically feature
screens, kiosks, jukeboxes and jumbotrons. DOOH also
includes stand-alone screens, kiosks, and interactive media
found in public places.
Global Advertisers, an outdoor agency, analysed industry
data, interacted with industry experts and carried out
research to conclude a series of predictions:
• Digital sites will not simply replace static sites, but will
create additional levels of consumer reach.
• Two broad OOH sectors will emerge: Broadcast and
Targeted. The Broadcast segment will include large
numbers of well-positioned static sites and premium
digital sites. The Targeted segment will include national
networks of digital sites capable of time-flexible
distribution and real-time reactive campaigns.
• The deployment of national digital poster networks
in proximity to retail locations and the integration of
day-part flexibility; real-time planning and new audiencebased
trading systems will unlock the potential to drive
‘smart’ retail promotional marketing.
• OOH will develop a symbiotic relationship with mobile
marketing and internet based campaigns, opening up
new revenue streams. Content will play an increasing
role in OOH media and billboards are likely to become a
distribution point for digitized news and entertainment
content.
Rather than being a disruptive force, digital technology
is expected to create enormous opportunities for Out of
Home media.
“
The OOH industry will move up the value
chain and will no longer be seen as a
residual or commodity media. Creative
bespoke for Outdoor, planning and strategy
becoming important cornerstone and
will replace excel planning for outdoor
campaign, as clients will demand this from
Outdoor Agencies
“
- Sanjay Pareek
CEO,
Percept Out of Home