On path to recovery, OOH ad rates reach pre-Covid levels

After being severely hit during the pandemic owing to multiple lockdowns and restricted movement of the public in the past, OOH advertising is on a recovery path with not just growth in ad volumes but also a gradual increase in ad rates reaching the pre-Covid levels.

Jayesh Yagnik

As per Jayesh Yagnik, CEO, MOMS OOH, “During the pandemic, ad rates experienced a significant decline of 30-40% compared to standard levels. However, with the industry’s robust resurgence, the market is now diligently working towards fully reinstating and matching the prevailing rates.”

He further pointed out that the ad rates are now in close competition across the industry, subject to market nuances, which showcases the OOH sector’s dedication to reclaiming normalcy along with its professionalism and unwavering commitment to delivering impactful advertising solutions.

Haresh Nayak

Haresh Nayak, Founder and CEO, Connect Network, said, “The ad rates demanded by the OOH industry in India have also gone up by around 10%, which is relatively higher than the average of 5-7% in the aftermath of the pandemic.”

Rohit Chopra

Rohit Chopra, COO, Times Innovative Media (Times OOH), commented, “We have been fortunate enough to get hold of the demand and seize desired rates for our premium properties across segments. In fact, we have revisited the ad card rates since last year where we have given marginal pushes to the price at different intervals, and we have been receiving pretty good responses.”

Ankur Rastogi

According to Ankur Rastogi, Founder and CEO, All About Outdoor Group, the ad rates have remained the same as pre-covid and are only higher in some cases - such as monopoly-driven ecosystems like malls and airports. 

Nayak said the OOH market is currently growing at over 30%, owing to the spikes in costs across markets and media in the post-pandemic world such as digital transformation, data-driven advertising, hybrid approaches- combining OOH and digital, along with enhanced measurement and ROI.

“OOH industry in India is experiencing significant growth. It is one of the fastest-growing advertising segments in the country, driven by factors such as urbanisation, increasing consumer spending, and the need for brands to reach a wide audience,” he said.

“The client response has been good and with the market growing significantly, clients are exploring multiple touchpoints and new client categories are also spending in the OOH space,” he added.

As per Times OOH’s Chopra, the market scenario has improved drastically since the third wave of Covid-19, so much so, that the industry has witnessed prominent concentration growth on the brands’ side in the post covid scenario when it comes to being quite open and enthusiastic about premium, well maintained and strategic media formats that offer high dwell time, high-value brand image and exclusivity. 

He also went on to emphasise that while there is a clear inclination towards long-term contracts where brands are occupying sites and media formats for extended timelines, where one year is a minimum, primarily; understanding that there has been a continuous surge in terms of traffic across transit touchpoints along with fierce competition in the market especially post covid, brands don’t want to leave premium properties easily despite the rising cost or any other factor. Hence, there is an increase in extended media occupancy in terms of long-term deals.

According to Rastogi of All About Outdoor Group, the wave of improvement can be seen in how aggressively media owners are bidding for government tenders, which in itself is a sign that they are hungry for acquiring media as they see that there is a rising demand to be met.

“Media planners are evaluating more parameters than before for the selection of sites owing to which there is a delayed decision making in terms of the campaigns’ confirmation because of which vacancy of premium sites has got marginally increased than pre-covid levels, but this shall be stabilised before the coming festive season,” he said.

He also went on to add that the Real estate sector still dominates OOH consumption and with the growth in residential investments from consumers, OOH which delivers impact and helps builds a brand to a section of local audiences is the primary choice of marketers in this genre.

“Bulk buying is a phenomenon of real estate only and yes that’s on the rise as they invest in branding for project-related sales and not to build a brand. Also, and when they have a project to sell, they need to plaster the local catchment area where bulk buying is the most preferred method,” he opined.

As per Yagnik, the OOH industry has exhibited remarkable resilience and professional acumen, as highlighted in the Madison adex report, achieving a remarkable growth rate of 69% in 2021 and rebounding over the past two years has enabled the industry to surpass pre-pandemic levels, effectively recuperating from the challenging market conditions brought about by the pandemic.

OOH media grew by 86% in 2022 and reached 94% of 2019 levels owing to capacity utilisation, as per the EY report on Media & Entertainment. The EY report also mentioned that the outdoor advertising space in 2022 witnessed a total of Rs 37 billion in 2022, as opposed to 2019’s Rs 39 billion.

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