Bharat calling: Brands on OOH route to reach smaller cities

Rural India or Bharat is featuring big on the list of brands and to amplify this further most marketers are taking the OOH route. The outdoor advertising sector is seeing steady growth and has the potential to get bigger, show numbers from industry reports.

Industry players share they have reached pre-Covid numbers and they see this getting better in the days to come with more premium spaces being developed in the country’s rural pockets, lending brands more scope of engagement via the OOH routes.

Tier 2, 3 and 4 cities are emerging as new target points and OOH is one of the biggest mediums, especially for regional brands, to catch the attention of consumers.

Haresh Nayak, CEO & Founder, Connect Network Inc, referred to announcements made in the Union “Amrit Kaal” Budget. “The budget stuck to the narrative of a larger economic strategy to boost India’s fortunes in 2047. The biggest positive is the 33% increase in overall CAPEX outlay on infrastructure development, which will take India towards becoming a true global powerhouse and help urbanize the hinterland. The funds announced for creating infrastructure in Tier-2 and Tier-3 cities will go a long way in boosting overall consumer confidence, and also help the OOH industry with modern infrastructure and expand the business in more markets.”

Sharing more on this was Lekshumanan Annamalai, Founder, Coral Media. “Regional brands are investing more as they have tested success with hyperlocal activities and concentrated areas. In terms of value, the proportion would be the same, as our industry is dependent on the real estate of the business (the areas where the OOH structure is situated). The cost of doing a campaign in Mumbai and NCR is equal to doing campaigns around the entire country.”

According to Mangesh Shinde, Co-Founder of OSMO Advertising, “The pandemic has shaped consumer behaviour in multiple ways. With the rising penetration of smartphones and subsequent internet consumption, Bharat unlocked a completely new user base for brands via E-commerce platform. Increasing digital literacy and disposable income in Tier 2,3 & 4 markets have opened up new growth opportunities for several categories.”

“The Indian government has also been aggressive in expanding the road infrastructure and making connectivity easier between a metro town and its nearest hub of Tier 2 & 3 cities. As a result there has been reverse migration of numerous industries from India to Bharat that has generated more local employment resulting in an increase of disposable income. There is also a reverse migration of talent from India to Bharat as it offers better standard of living at much affordable cost of living. This has created a demand for lifestyle and recreational needs providing growth opportunites for industries like E-Commerce, housing, Retail, F&B, Entertainment etc.”

Asked why advertisers are taking an interest in the hinterlands, Rajneesh Bahl, Business Head, Zest Outdoor, said, “It is very simple, your advertising levels are always proportionate to the level of consumption. These regions have started developing and their infrastructures are developing, the BFSI sector has reached far in these regions and they have the capacity to pay. And during the pandemic, a lot of people went back to their hometowns, and with work from home/anywhere being the new norm brands have found a new interest in these regions.”

Earlier in January 2023, the Zomato x Blinkit OOH campaign got the entire nation’s attention. This traditional media campaign was a trending conversation for days and spurred many brands to get on to the bandwagon.

Asked about the future of the OOH industry in rural areas, Annamalai said it is surely growing but will take a little while to catch up with the urban business. “It is certain that tier 2-3 cities are going to grow big. After Covid, the maximum disposable income is in these towns due to the WFH model. However, it will take time to match top cities like Mumbai and NCR because of the absolute pricing. Also, considering cities like Hyderabad, Bangalore and Chennai still don’t have much infrastructure for the OOH industry, it will be a slow growth.”

Like other mediums, the OOH medium is turning to digital. Speaking on innovations in the industry, Shinde said, “OOH is one the leading mediums where innovations make high decibel noise. Technology integration in a brand-suitable context yields positive results. Recently we executed a 3D Anamorphic Installation campaign for Renault inside malls in Mumbai, Gurgaon and Bengaluru, which provided an immersive feature experience of Kiger. We have also successfully integrated OOH and digital for omnichannel communication of HP Spectre Laptop.”