The Meltdown: Peak season fails to cheer outdoor industry as ad spends dip 40 pc
The peak season for the Indian outdoor advertising industry, which starts around September and goes on till February-March, is beginning to feel the heat of the global economic meltdown. The overall growth rate of the OOH industry is expected to see a drop of around 30-40 per cent from what it was earlier projected.

The peak season for the Indian outdoor advertising industry, which starts around September and goes on till February-March, is beginning to feel the heat of the global economic meltdown. As a result, the industry is facing a 70-80 per cent cut in terms of the media spends from sectors like housing/ real estate and financial. The overall growth rate of the OOH industry is expected to see a drop of around 30-40 per cent from what it was earlier projected.
Owing to the economic slowdown, the Indian Outdoor Advertising Association (IOAA) has also decided to take corrective measures as they plan to kick off a public service campaign that would prove the efficacy of the medium.
exchange4media spoke to the Indian out-of-home ad fraternity to gauge the implications and way ahead.
Industry to witness the 2006 growth rate
Indrajit Sen, Country Head and CEO, Stroer OOH Media India, pointed out, “Even after considering new media like the upcoming large number of BSQs in Delhi and Mumbai, new airports, transit contracts, and FOBs in various cities, one needs to remember that this year has seen a loss of billboard business in Chennai and Tamil Nadu, which has not been replaced by any new alternate media. Overall, the industry is likely to see a cut of about 30-40 per cent from the projected forecast for this year, and so we might witness the growth level of 2006.”
Sanjeev Hajela, President, Primesite, observed, “Overall, there is a sense of caution in the OOH industry, and as a result we are not witnessing the kind of campaigns and the projects that would otherwise normally take off. As a result, there seems to be a decrease of approximately 30 per cent in ad spends.”
Anil Kannambille, Co-founder, Accord Advertising Pvt Ltd, however, felt that it was the metros and not the Tier I, II and III cities that had seen a dip. He said, “Overall, there has been a 15 per cent cut in the booking space across all OOH formats in India, of which the major losers are the media owners who own properties in cities like Mumbai, Chennai, Bangalore and Delhi.”
A check at the entry level
Soumitra Bhattacharya, CEO, Laqshya OOH Media, noted, “The first thing we would want to do is improve productivity, and then we would look at rationalising cost. We are studying the situation and would act accordingly on both the work-force and ad-rates.”
Haresh Nayak, General Manager. Posterscope India, is expecting a dip in the overall appointments that are done in the Indian OOH industry. He said, “Overall, I see a dip of around 15-20 per cent in the junior level appointments, but the industry shall see this as an opportunity to recruit higher level officials.”
Speaking on how Postercope Worldwide is eyeing India, he said, “Posterscope Worldwide has asked its global offices to cut down on expenses like recruiting new people, travel, etc. However, we in India are not experiencing any such cuts, mainly because we are in the growing stage, and thus, we are allowed to follow whatever that had been planned in advance. But yes, we shall keep a check on junior level appointments.”
A lesson for the bidders
According to Sriram Iyer, CEO, Street Culture, “Owing to the economic slowdown and a reduction of around 40 per cent in the ad spends by the clients, the industry players need to re-access their balance sheet. Also, we might see corrective measures by players who were recently seen bidding out of proportion. Consequently, now even the most prominent sites of Mumbai are like blank slates.”
Kalpesh Vora, Director, Creation Publicity Pvt Ltd felt that there would be a 50 per cent drop in future bids, mainly because in the recent past companies had bid in an irrational manner, and thus had misguided the industry players.
IOAA plans for a corrective measure
Stroer’s Indrajit Sen, who is also Vice Chairman, IOAA, said, “ IOAA is taking a proactive step to kick off a public service campaign along with arrangements to measure the effectiveness of the campaign. These results would be highlighted to clients and agencies to prove the efficacy of the medium.”
Speaking on IOAA’s behalf, he added, “This would also be the time to invest in the future by getting our backend systems in place – the research data, better than before as the downturns are always followed by upswings.”
There is a definite re-check on the ad budgets, appointments and bidding rates, and with most people adopting a ‘wait and watch’ policy, the coming weeks will reveal how much more cuts in ad spends and budgets can be expected.
Also read:
The Meltdown: ‘The flamboyancy of 360-degree initiatives will be diluted’
The Meltdown: Radio players safe for now, but keep a cautious eye on market
IndustrySpeak: Digital media remains buffered from market meltdown
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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.
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Swapan 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.
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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.
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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."
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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."
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