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IOAA estimates OOH revenue at Rs 2,251 cr in 2011

The industry body says the outdoor industry grew by 10 per cent last year

BestMediaInfo Bureau | Delhi | February 29, 2012

At its board meeting held on February 27, 2012, in Mumbai, the Indian Outdoor Advertising Association (IOAA) noted that every year various consultancies like PWC, KPMG, etc., publish revenue estimates of various media including that of OOH. In the absence of any common measurement data, each estimate is different, depending upon the base used for the estimation as well as the number of companies surveyed. To put an end to all this controversy, IOAA decided to carry out its own estimation from this year onwards.

It used two approaches. In the first, IOAA based its estimate on top line revenues of top ten outdoor specialist agencies + mainline agencies which have direct OOH business and extrapolated the same to include direct business done by media owners, estimated to be 35 per cent of total industry business. The top ten OOH specialist agencies are estimated to have achieved top line billings of about Rs 1,240 crore in 2011 with mainline agencies adding another Rs 280 crore.

In the second approach, IOAA collated revenue figures from airports and railways, added that to non-transit media revenues in the top ten cities, and extrapolated it across rest of the country, and estimated it to be 30 per cent of total national spend. While transit advertising accounted for approximately Rs 605 crore, non-transit OOH advertising revenue in top 10 cities alone is estimated to account for about Rs 1070 crore.

The revenues figures were collated by asking concerned companies to provide their top line figures on a completely confidential basis.

The lower revenue from the two approaches is Rs 2,251 crore, which indicates an approximate growth figure of around 10 per cent in 2011. Several other exercises are on to get a more accurate revenue figure. However, till such time as a perfect handle is arrived at, IOAA has put the OOH industry’s revenue at Rs 2,251 crore in 2011.

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