Future of D-OOH in India
Hi all
I must admit that after 3 long years of the struggle and investment of time, money and efforts, the name Digital OOH (DOOH) is yet to be known as a Medium. People still call it as a LCD screen medium! I am aiming to give it a name in the coming few years just like OOH, Radio, Internet...
If the industry consolidates the way, it has been doing for the past 6 months, I expect there to be 5 large scale DOOH channels in mainly 5 cities:
1. Elevator Media - 40%
2. In-Store DOOH Media (Organized + unorganized Retail Stores) - 25%
3. Transit Media in Buses, Taxis and Trains 15%
4. Restaurants / Fast food - 15%
5. Public Places (Railway / Airports etc./ LED) - 5%
All the surviving people have streamlined themselves for sustenance till March, 2011 and have learned the lessons hard way of burning huge cash but that's the case with the pioneers in general.
The media houses have been the smartest by not putting their hands in the bad time and waiting for the right moment till media acceptability has been reached. I expect this round to be started by early 2012-13 wherein the buyout may happen of the largest surviving and profit making company. However, this will all depend on how each of the players (read leaders!) in the above 5 verticals have performed till that time.
Depending on the performance, around 50K screens are expected to be available in the next 4-5 years which is way below the earlier excitement but good enough for stake holders to exit. The total industry which was earlier expected to be around Rs. 500 Cr by 2012 is now expected to be about Rs. 250 Cr by 2013-14 due to the time and money lost in the first 3 years of its evolution and establishment.
I would put my bets to the first 2 verticals since it would constitute for around 65% of the overall DOOH spend to about Rs. 165 Cr in the next 3-4 years. The rest of the verticals shall be pure brand reminding channels without much hype leading to a situation that ARPU would be higher for the first 2 verticals. The balance channels in the last 3 verticals are expected to be bought over by the players in the first 2 verticals by 2014.
Anyone who breathes the last by 2014 will definitely be known as the KING OF GOOD TIMES and only he would know that he is also the King of Bad times for the first 3-4 years of establishment.
Probably, he will be the one who takes the challenge of establishing DOOH to an acceptable level in the media industry and succeeds in it too...Probably, its a huge challenge and I am sure there is someone out there with the guts to do it...
I will continue to write on the developments and hope to do so till the hero emerges...
Dhananjay
I must admit that after 3 long years of the struggle and investment of time, money and efforts, the name Digital OOH (DOOH) is yet to be known as a Medium. People still call it as a LCD screen medium! I am aiming to give it a name in the coming few years just like OOH, Radio, Internet...
If the industry consolidates the way, it has been doing for the past 6 months, I expect there to be 5 large scale DOOH channels in mainly 5 cities:
1. Elevator Media - 40%
2. In-Store DOOH Media (Organized + unorganized Retail Stores) - 25%
3. Transit Media in Buses, Taxis and Trains 15%
4. Restaurants / Fast food - 15%
5. Public Places (Railway / Airports etc./ LED) - 5%
All the surviving people have streamlined themselves for sustenance till March, 2011 and have learned the lessons hard way of burning huge cash but that's the case with the pioneers in general.
The media houses have been the smartest by not putting their hands in the bad time and waiting for the right moment till media acceptability has been reached. I expect this round to be started by early 2012-13 wherein the buyout may happen of the largest surviving and profit making company. However, this will all depend on how each of the players (read leaders!) in the above 5 verticals have performed till that time.
Depending on the performance, around 50K screens are expected to be available in the next 4-5 years which is way below the earlier excitement but good enough for stake holders to exit. The total industry which was earlier expected to be around Rs. 500 Cr by 2012 is now expected to be about Rs. 250 Cr by 2013-14 due to the time and money lost in the first 3 years of its evolution and establishment.
I would put my bets to the first 2 verticals since it would constitute for around 65% of the overall DOOH spend to about Rs. 165 Cr in the next 3-4 years. The rest of the verticals shall be pure brand reminding channels without much hype leading to a situation that ARPU would be higher for the first 2 verticals. The balance channels in the last 3 verticals are expected to be bought over by the players in the first 2 verticals by 2014.
Anyone who breathes the last by 2014 will definitely be known as the KING OF GOOD TIMES and only he would know that he is also the King of Bad times for the first 3-4 years of establishment.
Probably, he will be the one who takes the challenge of establishing DOOH to an acceptable level in the media industry and succeeds in it too...Probably, its a huge challenge and I am sure there is someone out there with the guts to do it...
I will continue to write on the developments and hope to do so till the hero emerges...
Dhananjay
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