The Indian OOH Industry’s struggle for a common currency
Rachana Lokhande discusses the challenges the Indian Out-of-Home (OOH) advertising industry faces in adopting a common currency, a standardised measurement system for evaluating and trading OOH assets. The Indian Out-of-Home (OOH) industry stands at a critical juncture. Despite contributing only 4% to the total media pie, it remains an important yet underutilized medium. However, its fragmented nature, lack of standard metrics, and resistance to change have prevented it from achieving its full potential.
A key issue is the absence of a common currency, a standardized measurement system to evaluate and trade OOH assets. As Rachana Lokhande, founder of Glocal Bridge and partner at OOH Capital, explains, “The lack of a unified metric hampers transparency, efficiency, and ultimately, the medium’s growth.”
Where does the industry stand?
Efforts to introduce a common currency have been initiated by key industry bodies such as the Indian Outdoor Advertising Association (IOAA), specialist agencies, and AAAI member agencies. However, these efforts have been slow-moving due to a lack of consensus among stakeholders, even on fundamental aspects.
Challenges to adoption: A perfect storm
Several systemic barriers have stalled the adoption of a common currency:
Lack of priority among marketers – With only a small share of the media budget allocated to OOH, brands often focus more on digital and television. Rachana points out that OOH could have positioned itself as a reliable alternative, especially amid concerns over fraud and transparency in digital media. However, its fragmented nature and lack of standardized metrics have made it an afterthought for advertisers.
Procurement inefficiencies – Many brands treat OOH as an extension of their mainstream media plans, with procurement teams making decisions primarily based on cost. Reverse bidding and price undercutting have discouraged investment in measurement and innovation.
Reluctance among media owners – Many media owners, particularly those controlling premium assets such as airports, are unwilling to invest in technology or share asset data. “Why change when business is running smoothly?” Rachana questions. This mindset has hindered industry-wide collaboration.
Fragmentation of the industry – The lack of a centralized inventory repository makes transparency difficult. Without a unified database, the idea of a common currency remains unattainable.
Who wants it, and who needs it?
Ironically, while no one actively pushes for a common currency, everyone would benefit from it. Media owners resist it due to transparency and cost concerns. Agencies and procurement teams continue to prioritize price over effectiveness. Meanwhile, marketers do not see OOH as a strategic, high-priority medium.
“This collective apathy is a failure that limits OOH’s potential,” Rachana asserts. Without a standard metric, the industry risks continued marginalization and irrelevance in the evolving media landscape.
The way forward: From 4% to the frontline
Despite these challenges, solutions exist—if industry stakeholders are willing to act.
Invest in technology – Cost-effective solutions can bring much-needed transparency. The industry must explore global best practices and apply them locally.
Change the narrative – Global markets measure ambient spaces where audience engagement is high, such as malls and transit hubs. India must expand its focus beyond roadside billboards.
Educate and convince stakeholders – Media owners need to recognize the long-term value of measurement. Even a small fraction of industry revenues could fund a robust common currency system. Agencies and procurement teams must shift from cost-based decision-making to a model focused on effectiveness and return on investment (ROI).
Encourage collaboration over competition – International markets that have successfully implemented a common currency view other media, not their peers, as the competition. India must adopt a similar mindset to move forward.
A decisive moment for Indian OOH
The lack of a common currency should not become an excuse for stagnation. Studies show that OOH delivers unmatched audience attention and compliments other media channels. To unlock this potential, the industry must act decisively.
“The investment required is minimal compared to the returns,” Rachana emphasizes. “The risks of inaction, continued marginalization and irrelevance, are too great to ignore.”
It’s time for the Indian OOH industry to move beyond its small share of the media pie and claim its place as a crucial component of the media ecosystem. With collaboration, investment, and a willingness to challenge the status quo, the industry can transform itself into a powerful force in the advertising landscape.
