| There's
no escaping now, everywhere you go it follows, across buses, trains, kiosks and
more. Striving to use every possible object within its reach to grab eyeballs.
Such is the impact of outdoor advertising!
It
is estimated that currently, the outdoor space availability
in metros is 'zero.' With festivity around the corner,
television channels are beefing up their programming
and the most opportunistic way to utilize advertising
appears to be via this medium.
The
outdoor business is estimated to be growing at 20
per cent and the size of the organized industry alone
has been pegged at Rs 11 - 12 billion by industry
experts. These figures are proof that advertisers'
dependence on outdoor has significantly increased.
The
biggest players this year among television channels
are the ususal suspects Sony, Star and Zee. The average
spends among these channels is estimated to be close
to Rs 700 - 800 million annually on outdoor advertising.
30 per cent of these spends are dedicated to the festive
rush spanning September - December, says Star Sight
CEO Sanjay Shah.
Bright
director Yogesh Lakhani opines that spends usually go up by 15 - 20 per cent during
the festive period. Jhalak Dikhla Ja got the ball rolling for Sony but
now Kaajal and Extraaa Innings from the same stable are straddling
Mumbai city. It is believed that more than 50 per cent of Sony's spends in launching
properties is dedicated to out of home. Star
has followed suit with its three big launches Antariksh and yet to be launched
Paraya Dhan and Sathi Re. Naach Baliye was also given this
life-size value during its launch period.
Slide
Show: Different mediums used in Outdoor
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Zee
went all the way with Betiyann and is planning
to use outdoor to build the buzz for the Sa Re
Ga Ma finale on 28 October, as well as the newly
launched youth block Klub. Zee alone is estimated
to spend about 15 to 20 million on each property.
In
addition to these big players, other contenders currently in the outdoor space
include Disney Channel with its latest local offering Vicky Aur Vetaal
and Tata Sky's DTH platform battling it out with Dish TV. Primesite head GM West
Aneil Deepak remarks that channels usually adopt a dual strategy, whereby 30 -
40 per cent of their spends go to permanent sites on an annualized basis, however
in promoting certain properties they will increase their spends depending upon
its significance. Outdoor
is consistently used by channels as it not only acts as a reminder medium but
it also gets people to sample a new show. Ogilvy Activation country head - Landscapes
and Signscapes Nabendu Bhattacharyya opines, "Outdoor builds quick awareness
and is the most cost efficient option. It is beneficial because it can be city
specific and have a customized plan by which campaigns can run from 7 days to
months."
Though
the outdoor industry falls short of a common currency
measure, individual specialists with the likes of
Star, Sony Entertainment, Zee TV, Times Now and Sahara
that use outdoor all the year round, have their own
proprietary tools to derive accountability from the
medium.
Besides
TV, the biggest spender this year are from the Telecom sector says Aaren Initiative
president Vivek Lakhwara. Reliance and Airtel have a pan Indian presence, adds
Shah. "Normal medium vacancy level of 20 per cent during the year becomes
zero during September to December as brands like telecom, finance, press, automobiles,
radio are also fighting to grab the available spots," says Bhattacharyya. Going
beyond billboards and bus shelters out of home as a category is fast expanding
into areas like retail and entertainment. With emerging technology like LED screens,
interactive facia at malls, backlit air blimps and large building wraps, Bhattacharyya
forsees, "Airport advertising will take on a much greater significance with
clients. Technology driven platforms like bluecasting will see the emergence of
different options available to advertisers which will add to the array of the
outdoor armament."
The
future is bright! On a rather optimistic note, Bhattacharyya
predicts that this year will prove to be a watershed
year for the outdoor advertising industry. "The
area of consolidation both from a buyer and the concessionaire's
perspective, is around the corner. It has happened
the world over and India will prove to be no different.
The outdoor specialists will control about 75 to 80
per cent of the entire outdoor market in India in
two years time and consolidation amongst them will
also happen very quickly. Alliances and mergers will
take place, media groups will broaden their services,
bandwidth will be built in order to deliver efficiencies
and scale, and the big buyers will only get bigger."
He
also sees foreign investors and large media groups waiting for an opportunity
to lunge into the Indian market. He says, "The big daddies like Viacom, Clear
Channel and Decaux know it's a profitable business to get into. They are just
hoping and crossing their fingers that tighter legislation and better regularities
come into play, for them to invest long term in India."
Of
course, one such biggie has already made a quiet landing
on Indian shores. News Outdoor India (NOI), the local
arm of News Corps OOH subsidiary News Outdoor
Group (NOG) and headed by a former senior executive
of Star India Sumantra 'Sumo' Dutta, has been operating
in the country for the last six months.
Click
for Slide Show
(Pics by Satej Shinde)
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