If the upcoming general elections are expected to add an estimated Rs 4,000 crore to India’s advertising pie this year, it is the out-of-home (OOH) segment that’s likely to be among the biggest “labharthis” on the back of its ability to reach all categories of voters. Outdoor advertising spends by political parties this year are expected to cross Rs 1,000 crore, and record a jump of almost 50% over the 2019 OOH spending, which was estimated to be Rs 550-600 crore.
Digital and social media is, unsurprisingly, expected to earn the most at Rs 1,400-1,500 crore, followed by TV at Rs 1,200 crore and Rs 300-400 crore for print. Explaining why the rapid growth in digital spending hasn’t severely impacted political advertising on outdoor media, Noomi Mehta, chairman at Selvel One, says, “Though digital and social media have become a popular choice among political parties over the last few elections, they do not really eat into the share of OOH. That’s because both mediums work well when they are in sync with each other. What you see on your phone gets validity when the same messages are displayed on outdoor sites, especially at a time when fake news is rampant online. Outdoor serves as a powerful reinforcement tool for voters for it validates the messages they get online. It is a public promise on display, so the impact is unmatched.”
According to the Pitch Madison Advertising Report 2024, outdoor advertising grew 13% in 2023 to reach Rs 4,140 crore and crossed pre-pandemic levels. It predicts a 15% growth rate for outdoor advertising this year, by the end of which it will touch Rs 4,761 crore.
Experts also note that the hype is far greater this election season than the 2019 round and that is reflected in a significant 30% jump in the overall ad spending vis-à-vis 2019 (when it was estimated at Rs 2,800-3,000 crore). Until the last elections, the Bharatiya Janata Party (BJP) and the Congress were the largest spenders at the national level, says Dipankar Sanyal, CEO at Platinum Outdoor and Madison Retail Paradigm. “At the regional level, parties like Shiv Sena, the Samajwadi Party, BJD (Biju Janata Dal), TMC (Trinamool Congress) and AAP (Aam Aadmi Party) have been large spenders. The battle is fought hardest in the states with a high number of seats like Uttar Pradesh, Maharashtra and Bihar,” says Sanyal.
Formats aplenty
There are no limitations when it comes to outdoor formats. Sanyal notes that metros and tier-I cities will see the deployment of a wide range of billboards, kiosks, and transit media. LED displays are also particularly popular in cities since they allow more flexibility and depth, and are more likely to resonate with voters. Deep into tier-III locations and beyond, parties employ wall paintings, wall wraps, roadshows, banners and paper posters.
Political parties have also been adept at using technology. The last election saw the use of over 300 mobile projector vans crisscrossing cities and villages. This year, that number is expected to cross 500. Roadshows now also include innovations like VR glasses and holographic representations of leaders, which work very well among rural audiences. Dynamic outdoors — or digitally-run OOH tools — are being extensively used in housing societies and resident welfare association offices.
So, are outdoor sites being sold at a premium then? While outdoor advertising rates vary depending on location and format, an industry observer points out that political parties, especially if they rule a certain state, allow very little negotiation on ad rates since they also control the site licences.
According to Sarfaraz Ansari, senior VP, Mudramax, price inflation during peak demand is true for all media, including OOH. “Since it is a general election and there’s a lot at stake, most parties are eyeing prime locations and outdoor players have the leeway to inflate prices, to the tune of 100% at times,” says Ansari. With digital OOH offering more flexibility, Ansari expects digital sites to have bigger demand than traditional hoardings and flagpole advertising.
The one factor that might play spoilsport for the outdoor party is the fact that the elections will be help over multiple phases. Mandeep Malhotra, founder, Srishti Media and Investment, says that the markets that go to polls early will have a shorter spell of advertising while those that go late will have a more sustained burst of activity. For example, the first two phases will take place on April 19 and 26, which gives advertising companies in those regions a smaller campaign window. Greater frequency in these markets should compensate these markets in part though. “Outdoor agencies in constituencies where polling dates are scheduled post May 15 stand to gain the most.”
Beyond billboards
Outdoor advertising by political parties is expected to cross Rs 1,000 crore this election, up from Rs 600 crore in the 2019 polls
Digital displays that deliver dynamic messages are expected to be a big draw this election season
Biggest spenders will be BJP and Congress, though regional players like Shiv Sena, AAP and TMC are also spending heavily
Parties are employing multiple formats across regions such as LED screens, wall paintings, and roadshows with VR glasses and holographic representations of leaders