Sunder Hemrajani: Heavy investments and new technology will lead to big leap in digital OOH

By afaqs! news bureau , afaqs!, New Delhi and Mumbai | In OOH News | February 10, 2011

The economy is back on the growth path and GDP growth is likely to exceed 8.5 per cent. This is good news for the industry recovering from a dismal 2009 and is likely to result in double-digit increase in OOH spends.

Increased investment in infrastructure, especially the transit segment, is likely to lead to new opportunities for the OOH industry. This would lead to creation of high quality media within the regulatory framework. Another reason for excitement is there is continued investment in airports in India. New airports like T3, in New Delhi, offer advertisers the chance to easily engage with their target groups.

A big leap in digital OOH is also imminent with new technology and investments in this segment. There is also a significant increase in customer-centric innovation opportunities in order to maximise value from OOH properties for all stakeholders - the consumers, advertisers, media and property owners.

However, the talk of another round of meltdown, related to the problems in Europe (Spain, Portugal, Greece and Ireland) is scary. No one wants a repeat of the nightmare that was 2009.

Recessionary pressures and unemployment rates in the US are likely to impact the world economy. This could adversely impact ad spends. Moreover, the new bubbles in India - real estate and stock markets as well as high inflation and its consequences on the economy - are alarming.

Inconsistencies in Government policies in the OOH space are troublesome as also the risk-profile of long-term projects, which are likely to increase. Another factor is the lack of self-regulation in the OOH industry leading to the proliferation of media and the commoditisation of this space. It will lower the value for all stakeholders.

To read about other OOH media professionals, click here.