Outdoor advertising gains traction, diversifies commercial real estate revenue streams

What was once just an extra branding element is now becoming an important part of the commercial real estate business strategy, say several industry executives.

By definition, outdoor advertising or out-of-home (OOH) advertising is a form of marketing that reaches consumers when they are outside their homes.

The real estate executives say that outdoor advertising has moved from the basic static hoardings to a high-revenue-generating, value-added business segment for commercial properties.

Umang Jindal, Chief Executive Officer (CEO) at Homeland Group, says that advertising is rapidly becoming a core vertical as commercial assets have become a mixed-use place.

"As commercial assets become mixed-use destinations, advertising is no longer peripheral--it's fast becoming a core vertical that adds strategic value," said Homeland Group CEO.

"Growing urbanisation and pedestrian flow have transformed buildings into potential media channels. Facades, rooftops, digital billboards, and transition points in commercial buildings are strategically used for brand exposure," said Vijay Kamboj, Founder, Bric-X Infra.

According to the data made available by MarkNtel, an Indian data intelligence firm, the Digital Out-of-Home Advertising Market size was valued at around USD 284 million in 2024 and is projected to reach USD 620 million by 2030, said the firm in its report.

The executives say that advertising income normally represents 3 per cent to 8 per cent of the revenues of a commercial building, but it can reach more than 10 per cent on marquee frontage and digitally enabled display properties.

"It contributes about 7 per cent to 10 per cent to the total income of a commercial property. Outdoor advertising in premium Special Economic Zones or transit points can drive revenues as high as 12 per cent or even more," said G Hari Babu, National President of NAREDCO.

On the other hand, the executives representing electronic equipment say that they have seen traction in the Indian markets.

"Digital billboards, LED screens, interactive displays, and digital transit advertising are becoming more common in major cities like Mumbai, Delhi, Bangalore, and Chennai," said Muneer Ahmad, Vice President (Audio/Visual Business) ViewSonic India.

He added that demand for digital out-of-home advertising is rapidly rising in India as consumer preferences shift from traditional to digital platforms, noting that global real estate players are ramping up their investments more than their Indian counterparts.

Indian players are increasingly looking for popular sites to maximise their presence in the crowded or popular places, giving more visibility to the brands.

Observing the trends, Ashish Gupta, Director - Mandate Strategy, ANAROCK Group, says that revenue potential is a function of the location and the amount of traffic or footfall it sees.

"ANAROCK Creative Agency focuses on locations such as Bandra Kurla Complex (Mumbai), Cyber Hub (Gurugram), Connaught Place (Delhi), MG Road (Bengaluru), and HiTech City (Hyderabad) to drive the highest value for our developer clients' digital advertising spends," the ANAROCK Group Director added.

Sharing more insights on the specifics of the market, Bric-X Infra Founder added that in Delhi NCR and Gurugram, there is strong demand for non-traditional advertising media such as facades, terrace edges, lobby screens, and elevator wraps.

He added that advertisers are keen to utilise these eyeball-catching, out-of-home locations to create experience-based brand interactions.

"Experiential activations and pop-ups in amenity spaces are also gaining momentum, allowing brands to reach captive audiences within commercial buildings beyond captive audiences in traditional billboard sites," Kamboj added.