OOH Industry To Contribute Rs 5,500 Crore To AdEx In 2025: IOAA’s Praveen Vadhera
Vadhera speaks about government policies, illegal hoardings, doing a census of hoardings and more
The Out-of-Home (OOH) advertising industry is expected to grow by 15-16 per cent in the upcoming year, contributing Rs 5,500 crore to the overall advertising spend. At the same time, the Indian Outdoor Advertising Association (IOAA) is actively harnessing technology to enhance industry outcomes.
In a major step towards sustainability, the IOAA has partnered with GroupM, WPP's media investment arm, to create a dedicated task force. This initiative aims to promote eco-friendly practices within the industry, with the target of having half of all advertising sites in India use recyclable materials by 2027.
In a media report, Praveen Kumar Vadhera, CEO, IOAA discussed the expected growth of the Out-of-Home (OOH) advertising industry, which is projected to reach a value of Rs 5,500 crore or more. Vadhera elaborated on the industry's expansion prospects and highlighted the challenges faced by media owners in adapting to evolving market demands and technological advancements.
On the impact of government policies, Vadhera mentioned, “The OOH policy has been put on hold in Mumbai. In other states, there haven’t been major policy changes. However, with the upcoming BMC elections, decisions regarding policy remain on pause.” IOAA plans to meet with BMC officials soon to address issues with regard to the OOH policy.
In May 2024, the collapse of an illegal oversized hoarding in Ghatkopar resulted in the deaths of 17 individuals and injuries to 74 others. This tragic incident has raised serious concerns about the prevalence of illegal hoarding sites across the country and the associated risks to public safety.
Various stakeholders have expressed significant concerns about illegal hoardings, which have become a major challenge for the industry. Vadhera stated, “Illegal sites continue to harm the industry. While some may derive short-term revenue, the overall growth of the sector suffers.”
To address this issue, the IOAA plans to conduct a comprehensive survey of hoardings and make the findings available to clients and agencies. Vadhera explained, “Any site not listed in this data will place liability on the specific media owner and client if any wrongdoing occurs. Within few months, this data will be available on the IOAA website, covering the top 10 markets, which account for around 60 per cent of total OOH spending.”
The widespread misuse of Out-of-Home (OOH) advertising by offshore gambling and betting companies has raised frustrations not only within the Real Money Gaming industry but also with the government and regulatory authorities.
Regarding advertisements by illegal betting and gambling firms, Vadhera outlined, “We collaborate closely with gaming federations and legitimate Real Money Gaming companies. We are forming a committee to reduce such ads. While ASCI has made progress in curbing betting and gambling ads in print media, their prevalence in digital and OOH formats remains a concern.”
“Within upcoming months, we aim to significantly restrict advertisements by notorious betting and gambling firms on OOH as a medium,” he added.
Several media agencies, including GroupM, Publicis, Madison, and IPG, are currently testing RoadStar, a measurement system designed to address the absence of a standardized currency in the OOH industry. RoadStar, which leverages GPS technology, was first launched by Relu AI in 2020.
RoadStar spans over 800 markets across India, ranging from metro cities to taluka levels, and monitors more than 60,000 media sites. It utilises data from over 35 million mobile users to identify high-traffic areas and optimize ad placements. The platform tracks consumer movements through 3 million points of interest across 120 categories, offering detailed metrics such as unique reach, gross reach, frequency, and more.
Discussing IOAA’s efforts to advance the OOH industry, Vadhera emphasised the importance of RoadStar, “We’re engaging with media agencies and clients nationwide. We will also meet members of the Indian Society of Advertisers (ISA), to promote awareness about how RoadStar can bring measurability and value to advertisers, ensuring OOH is treated on par with other media,” he said.
Vadhera highlighted the progress of RoadStar, stating, “We’ve received positive feedback from stakeholders. It has been widely accepted as the standard currency by Advertising Agencies Association of India (AAAI) after extensive due diligence on the tool by a technical committee. Most are on board, and the remaining should follow in the next couple of months.”
The IOAA is also working in partnership with the World Out-of-Home Organization to integrate new technologies and drive advancements in the aesthetics of media. Vadhera pointed out, “Currently, OOH AdEx is not measured accurately. By collecting data from media owners, we estimate the actual OOH AdEx should represent 10% of total AdEx, amounting to approximately Rs 10,000 crore.”
