A digital ad experiment is underway in India that could, if proved successful, migrate to other markets around the global.

En Route Media and Buzzr.in are partnering to deliver ads to passengers riding in the private taxi service operator EasyCabs.

They will be delivered on En Route Media’s recently launched digital network of smart screens in radio taxis. Buzzr.in touts itself as the first Indian deal site to offers deals through digital signage. By placing its ads in taxicabs it expects to be able to tap a wider, more mobile and perhaps affluent audience.

En Route's digital entertainment network, called Flo, is installed in 250+ EasyCabs in Mumbai. A tablet-like device, Flo is equipped with analytics as well, allowing Buzzr.in to track how a user has interacted with the device and customize deals accordingly, according to Media Nama.

A Growth Category

As offbeat as it is, digital signage in taxicabs has clear potential to grow, if the larger DOOH industry’s performance is any indication. The amount of ad spending on digital-out-of-home (DOOH) networks reported in Q3 2011 was 10.6% higher than in Q2, while the estimate of ad spending on DOOH networks over the next 3-6 months is projected to be 9.89% above Q3 levels, according to a January 2012 report from the Platt Retail Institute (PRI) in partnership with the Digital Signage Federation (DSF).

The DOOH ad spend index, a composite measure of changes in the reported level of business activity, was 130 in Q3 2011, its highest level since Q4 2010 (137.5). An index score of over 100 indicates an improving or positive industry outlook.