Posterscope India has completed 10 years in the country and coincidentally Haresh Nayak, Regional Director, Posterscope Asia Pacific, Managing Director, Posterscope Group India has also completed 10 years with the company.
Nayak currently heads operations under the Dentsu Aegis Network (DAN) umbrella for Posterscope (OOH), Brandscope (OOH), Ambient OOH, Hyperspace (Retail), InDeed (CSR Advisory) and C-LAB (Celebrity & Sports Management).
Nayak joined the company on 25 August 2008. “When I joined Posterscope India, Ashish Bhasinand I weren't even aware of how things would be. The journey was little rough at the start during the 2008 global financial crisis, but the journey has been remarkable and it's largely due to the kind of people we have and my mentor- Ashish Bhasin,” Nayak shared.
He further added, “In 2009, we launched Hyperspace and later in 2013, we launched InDeed services. Today, we have services across retail, ambient, out of home, sports, celebrity management, CSR and smart city solutions. The latest entrant would be digital out of home as a separate service within the Posterscope Group Network."
The two values that I really imbibed during this journey is being agile and constantly reinventing yourself. I think as a company we made a brand relevant for the industry, for the clients and our media partners. We started Posterscope India with 11 people and today we have 180 people on board. The company is continuously growing on an average of 30-40 percent year on year for last ten years.”
Challenges in the OOH space
Nayak believes that there are quite a few challenges that agencies face such as, data, numbers and accuracy. The larger issue that the industry is facing today is professionalism as there are no trade barriers, unlike television and print. He mentioned, “We need larger players and investment into the domain which will bring professionalism, quality, and analytical capabilities.”
“We started an initiative way back in 2014 and in 2016 where we cracked the entire piece on how to bring in ROI and data into the industry. We are little ahead from our competitors when it comes to giving the ROI in the out of home business. Today we have global software and tools which can tell you where your target audience is, what they are searching and what kind of media options you need to take,” shared Nayak.
Out-of-home is one of the oldest mediums and Nayak thinks that the industry has great scope to evolve and grow. “Yes we started with out-of-home advertising, but today we position ourselves as location-based marketing specialists. Because the moment I became a location-based expert the horizon actually broadened. In Asia, where the market is growing between 7-10 per cent, globally, the industry is growing at 2-3 percent. I think we are in a much better space when it comes to the medium. In 2013, we bought Milestone, that itself talks about our group's belief in the medium.”
Size of OOH industry in India
The size of the outdoor industry is dependable because there are various numbers which keep floating. Official numbers talk about Rs 3000 crore industry but our report and analysis say that the industry size is around 5000 crore and it is continuously growing and that's a great space to be in and it will grow 7-8 percent year on year. Though our advertising industry is small. China’s OOH industry is equaled to India’s OOH industry.
Future of Digital OOH
Nayak believes that Digital OOH is "hot cake" and everybody wants it, but he thinks it is important to first understand what digital OOH is. He elaborated, “For us, digital out-of-home is not just about digital screens. Apart from the display, it is also important to have engagement. If you look at the overall digital market, in the last two years time, the screens have grown from 15,000-20,000 to 70,000 screens. The number of screens have gone up."
From non-connecting screens, around about 5 percent to almost 60 percent screens are connected today. So, programmatic becomes another avenue for our clients to explore, that is why as an agency we are taking some position there and connecting the screens and making a platform for everyone to use programmatic.
Programmatic advertising will bring accuracy and optimisation in spends. That's the area which will grow in the next three years. I believe in the next 5-10 years, the digital OOH industry would grow the fastest and it will roughly be around 20-25 per cent of the overall industry pie.
Next for Posterscope India
Nayak believes that today Posterscope India positioned as a location-based marketing specialist, gives them an immense opportunity to grow. "In the next 10 years, I see a growth at 30-40 per cent. I see a bright future in Smart City Solutions given the government's initiative to modernise the cities. There is a lot of opportunity in digital OOH. It is an initiative we are taking globally and also in India. I believe we are a little ahead of the curve, because we are connected to 28,000 screens out of those 70,000. The third area of growth is optimisation of OOH and bringing in data and technology into the business and I think automation is driving our business to a very large extent. Three key factors that are going to drive the business are data, technology, and infrastructure," he said.