Slowdown woes: Cost corrections hurting the OOH industry
With companies cost cutting and reducing their advertising budgets by almost 35-40 per cent, the outdoor advertising industry has started losing out to the Internet advertising firms, who are witnessing a growth of almost 65 per cent CAGR. Although Mumbai and Delhi comprise 50 per cent of the outdoor market in numbers, 70 per cent of values in terms of money are coming from Tier II and III cities, that have also been affected drastically.
With companies cost cutting and reducing their advertising budgets by almost 35-40 per cent, the outdoor advertising industry has started losing out to the Internet advertising firms, who are witnessing a growth of almost 65 per cent CAGR. Although Mumbai and Delhi comprise 50 per cent of the outdoor market in numbers, 70 per cent of values in terms of money are coming from Tier II and III cities, that have also been affected drastically.
Nabendru Bhattacharya, President, OgilvyAction India, said, “OOH is the only cost efficient, least spillover medium, hence, I can safely say, the least effected medium in this slowdown. In Novemer 2008, the OOH industry was hit by the producers’ strike, hence TV channels, who are primary spenders, stayed away from the medium due to no new shows during the November to mid-December period. However, other advertisers continued to be present on the medium. In January and February 2009, we have seen the space being filled up gradually and vacancy level reduced from 35 per cent in December to hardly 10 per cent at present.”
According to Bhattacharya, “The trends visible are the very strengths of the medium, which is a localised medium. 10-12 years’ back, we saw local boutique stores, shoe stores, furniture shops, retail, real estate and PSU banks and insurances companies in Mumbai. Bollywood movie releases have filled in the vacant OOH space.”
He admitted, “Cost corrections by 10-15 per cent have been visible across the medium. Tender properties are running into huge losses in Delhi and Mumbai. We may see tender surrender/ revision. The OOH industry is looking at some relaxation in pricing from applicable authorities. I see OOH continuing to have a higher demand situation given the next six months’ line up – viz. IPL, T20 World Cricket, Lok Sabha elections, TV channels line-ups, and telecom players launching in various circles..
“I feel, the OOH medium needs less budget to initiate campaign. Clients will monitor their costs very closely and use that medium which will deliver efficient ROI and fulfill campaign objectives in a particular market or city, besides avoiding huge spillovers. Hence, OOH will become medium of choice in recession,” Bhattacharya asserted.
Farid Kureshi, CEO, Zee OOH, noted, “When even Google has started to make people redundant, you know there are tough times ahead for the media industry. We face the most challenging market known by any of us, and the hit is across all media vehicles. Outdoor, especially billboards, as cost of entry is very low, has been hit the hardest. Owners who will hold on to their nerves will survive, the rest will either shut shop or sell out. There are also external pressures, both legislative and regulatory, that will determine the health of the outdoor industry in the longer term.”
Kureshi added, “The new rule of BMC will specifically reduce the number of sites as no billboards will be allowed on heritage buildings. Also, multiple sites on a single building would be hit. This will affect inventory positions as well as most owners.”
M Kumar, GM - Brand Development, Jagran Engage, pointed out, “Compared to the global fraternity, the Indian economy is still slated to grow around 7 per cent and the impact of the crisis resulting from well-known companies going for bailout packages/ shutdowns/ takeovers is not pronounced just yet. Several investors are staying away from putting their money in the stock market, more because of sentiments than for any other reason, so is the case with media. Pink slips in India are restricted to only a few sectors. So, while these sectors will exercise caution, few others will fill in and continue to spend. Call it recession or a slowdown; not surprising that A & M spend is the first to go under the scanner. So yes, there is a cut in spends from advertisers across media. As far as OOH is concerned, there is a 20-25 per cent impact. The up side is that in these times advertisers are getting deals that are to die for, so it is great for them.”
Kumar further said, “Mumbai and Delhi together garner close to 60 per cent of the overall OOH spends, and the nature is largely national, while local advertising is minimal. Because these national clients have cut back on spends or put their plans on hold, you see empty hoardings. It is also the time when one sees the number of owners. We are also aware of certain campaigns, where because OOH still remains the most cost effective medium, are seeing standalone advertising. As an aside, the fact that sections in the media have noticed and talking about empty outdoors is also telling – OOH as a medium is making the right impact.”
Read more news about (internet advertising India, internet advertising, advertising India, digital advertising India, media advertising India)
For more updates, be socially connected with us onInstagram, LinkedIn, Twitter, Facebook Youtube & Whatsapp
TOP STORIES
E4M Our strategy is to target younger audiences through Sports: Rajiv Dubey, Dabur
The Head of Media at Dabur India spoke exclusively to exchange4media on the World Cup, associating with Indian Idol, the company’s digital spending and much more
With quirky campaigns, memes and moment marketing, timed with the ongoing World Cup and particularly the India-Pakistan matches, Dabur India has got considerable consumer attention for its popular brands – Red Paste, Cool King Hair Oil, Chyawanprash, Dabur Vita and the recently launched Bae Fresh Gel toothpaste.
The 140-year-old company is going big on key sporting events, World Television Premiere (WTP) movies and reality shows. It is now gearing up to become the title sponsor of popular talent show ‘Indian Idol’ on Sony TV for the first time, shared Rajiv Dubey, who leads the media strategy at Dabur.
Read more news about (internet advertising India, internet advertising, advertising India, digital advertising India, media advertising India)
For more updates, be socially connected with us onInstagram, LinkedIn, Twitter, Facebook Youtube & Whatsapp
ShareSwapan Seth's new book 'COOL' is out
The book is a reflection of the author's 'eclectic taste across categories'
Advertising professional and art collector Swapan Seth has announced the launch of his new book COOL. The book is described as "a ready reckoner to the hip and the happening, of the known and the very unknown."
The book is a reflection of the author's "eclectic taste across categories: from boltholes to exotic hideaways."
COOL has been published by Simon & Schuster India and is available on Amazon.
Seth is an ad veteran with a long and illustrious career in the industry. He became the youngest-ever Creative Director at Clarion at age 24. He was VP at 26 at Trikaya Grey. Two years later, he started his agency Equus.
He writes for publications such as The Economic Times, Hindustan Times and India Today. This is his second book and he has previously published THIS IS ALL I HAVE TO SAY.
Read more news about (internet advertising India, internet advertising, advertising India, digital advertising India, media advertising India)
For more updates, be socially connected with us onInstagram, LinkedIn, Twitter, Facebook Youtube & Whatsapp
Disney Star signs 9 sponsors for Asia Cup PAK
Charged by Thums Up, Nerolac Paint+, Amazon Pay, Jindal Panther, My11Circle, MRF, Samsung Galaxy Z Flip5, Wild Stone and Thums Up come on board
e4m Staff Disney Star has signed nine broadcast and digital streaming sponsors for the upcoming Asia Cup.
Charged by Thums Up, Nerolac Paint+, Amazon Pay, Jindal Panther, My11Circle, MRF, Samsung Galaxy Z Flip5, Wild Stone and Thums Up have come on board for the upcoming tournament.
As reported earlier by exchange4media, Disney Star has sought Rs 26 crore for the co-presenting sponsorship on TV and Rs 30 crore for Disney+ Hotstar.
According to industry sources, the associate sponsorship on Star Sports has been priced at Rs 19.66 crore, whereas for the ‘powered by’ sponsorship on Disney+ Hotstar, the broadcaster is seeking Rs 18 crore.
As per the information available with exchange4media, Disney+ Hotstar has three sponsorship tiers-- co-presenting (Rs 30 crore), powered by (Rs 18 crore) and associate sponsorship (Rs 12 crore). The broadcaster is offering an estimated reach of 120-140 million for co-presenting sponsors, 90-100 million for powered by and 60-70 million for associate sponsorship.
A spot buy for 10 seconds has been priced at Rs 25 lakh for the India vs Pakistan matches, while for the non-India matches, the ad rate for 10 second is Rs 2.3 lakh. The India matches plus the final for ODIs has been priced at Rs 17 lakh per 10 seconds.
Asia Cup is scheduled to be held from 30 August, 2023, to September 17, 2023.
Read more news about (internet advertising India, internet advertising, advertising India, digital advertising India, media advertising India)
For more updates, be socially connected with us onInstagram, LinkedIn, Twitter, Facebook Youtube & Whatsapp
Sorted 360 wins creative & social media mandate of Reliance Mall
The agency will manage offline and online campaigns for Reliance Mall
Sorted 360, an integrated creative and social media agency, has won the mandate to providing brand solutions for Reliance Malls across India.
“Sorted 360 is set to enhance Reliance Malls' market presence with their unparalleled creative prowess and strategic thinking,” read a press release.
“Sorted 360's commitment to pushing the boundaries of creative communication aligns perfectly with Reliance Malls' ethos. With a pan-India presence spanning across 19 cities and growing, Reliance Malls has consistently captivated customers by offering an array of Reliance brands and third-party fashion & lifestyle brands. The mall has established an unparalleled connection with its patrons through superior quality, a remarkable value proposition, and an unmatched shopping experience,” it read further.
"We are thrilled to welcome Sorted 360 as our trusted partner in advancing our brand presence across the nation," said the Head of Marketing at Relaice Malls. "Their proven expertise in retail, shopping center management, and innovative creative strategies make them the perfect fit for our vision."
"Partnering with Reliance Malls is a testament to our commitment to shaping extraordinary brand experiences," remarked Prerana Anatharam, Co-founder of Sorted 360. "We are excited to leverage our strategic and creative acumen to further elevate Reliance Malls as the epitome of convenience, choice, and excellence."
Read more news about (internet advertising India, internet advertising, advertising India, digital advertising India, media advertising India)
For more updates, be socially connected with us onInstagram, LinkedIn, Twitter, Facebook Youtube & Whatsapp
test
test
test
Read more news about (internet advertising India, internet advertising, advertising India, digital advertising India, media advertising India)
For more updates, be socially connected with us onInstagram, LinkedIn, Twitter, Facebook Youtube & Whatsapp
test
test
test
Read more news about (internet advertising India, internet advertising, advertising India, digital advertising India, media advertising India)
For more updates, be socially connected with us onInstagram, LinkedIn, Twitter, Facebook Youtube & Whatsapp
KlugKlug onboards Hemang Mehta as Country Manager for Indias
Mehta was most recently Head of Agency Relationships at Network 18 Media & Investments
KlugKlug has appointed Hemang Mehta as its Country Manager for India.
Mehta will play a pivotal role in driving KlugKlug's growth and expansion within the Indian market and be responsible for Sales & GTM Strategy
Prior to that, he has also represented organisations like Exponential (now VDX.tv), India Today Digital and Rediff.com. His expertise spans various domains including digital media sales, mobile marketing, media planning, and buying, social media marketing, and more.
Hemang Mehta expressed his enthusiasm about joining KlugKlug, saying, "I am thrilled to be a part of KlugKlug, a forward-thinking platform that is reshaping the influencer marketing landscape. As much as I look forward to collaborating with the exuberant team at KlugKlug, I am super excited to interact with the brands to deliver powerful data-backed Influencer solutions that will guarantee business outcomes."
Commenting on the appointment, Kalyan Kumar, Co-Founder and CEO of KlugKlug, stated, "We are excited to welcome Hemang Mehta to our team as the Country Manager for India. His extensive experience in digital media sales and marketing will be instrumental in driving our efforts to provide influencer marketing solutions to our clients. We believe Hemang's leadership will be key in scaling our operations and expanding our reach within the Indian market."
Read more news about (internet advertising India, internet advertising, advertising India, digital advertising India, media advertising India)
For more updates, be socially connected with us onInstagram, LinkedIn, Twitter, Facebook Youtube & Whatsapp