Hoardings are no longer OOH media’s pet

OOH media owners will need to invest in technology beyond hoardings soon, say experts

MUMBAI: “Indeed, unless the billboards fall, I’ll never see a tree at all.”
—Ogden Nash

The American bard and many a likeminded person, who have denounced billboards for so long, have reason to cheer now.

Even diehard patrons are looking beyond billboards, once the favourite prop for the outdoor advertising industry. Unlike in the past, the cash-rich new entrants in the out-of-home (OOH) advertising are investing in areas other than conventional hoardings.

Take for example privately-funded Laqshya, which has invested more in non-billboard-based media. Other players are also experimenting with new forms such as OOH furniture, transit media and digital signages. Even Digital Signage Networks (DSN) and OOH Media are mainly focussed on digital screens that allow multiple-utilisation of inventory for a certain target audience.

Soumitra Bhattacharya, CEO, Laqshya Outdoors, says, “The OOH industry is changing, so we’re adapting to it. Laqshya’s acquisition strategy is based on media other than billboards. Mostly, it’s advertiser-driven. If his objectives are not met through hoardings, it’s natural for us to provide him with options. But that doesn’t mean we’re ruling out hoardings from our business completely.”

Internationally, the out-of-home (OOH) media sector has seen an increasing number of street-signages adapting to local environment and, at times, even jaw-dropping infrastructure.

But in India, the market has largely remained indifferent to it, primarily due to lack of innovation amongst OOH media specialists and slow absorption of new technologies.
Some players in the business say the Indian market is different.
Indrajit Sen, CEO, Stroer India, says a certain herd mentality is visible in use of hoardings.

“Innovation and moving beyond hoardings is inevitable since the OOH advertising now gives a margin of only 25-30% against 70-80% even 6-7 years ago. Today, rising family incomes mean less dependence on hoardings on their rooftops,” he says.

The local civic administrations such as the Bombay Municipal Corporation (BMC) believe hoardings lack aesthetic quality. So, they now allow the private sector to maintain civic amenities in exchange for advertising rights and FSI (floor space index) benefits.

R A Rajeev, additional municipal commissioner, Greater Mumbai, says outdoor media owners often flout norms.

“In the race for a few more bucks, advertising industry compromises on safety and security of hoarding structures and also add to the clutter,” Rajeev said during his address at the Outdoor Advertising Convention (OAC) on Friday.

The signs are clear that thousands of outdoor media owners, currently starved of funding in a largely unorganised OOH media sector, will need to adapt and invest more in OOH media beyond billboards and hoardings.

Advertiser needs are evolving too. This is in line with changing ad spend patterns as media plans slowly become less dependant on television advertising. Siddharth Mehra, AGM— marketing, Spice Mobile, says, “An advertiser now seeks more engagement and connect through OOH media. Unless the message is really strong, simple hoardings have to make way for more dynamic outdoor media.”

However, advertising veterans exercise caution and advise not to rule out billboards yet.

Mangesh Borse, director, Symbiosis Advertising, believes large-format advertising, primarily through billboards, will continue to be a preferred part in media plans.

Borse alluded to brands such as Amul, which used topical billboard advertising to establish itself. “Even in the US, after its initial tryst with street furniture and transit media, the share of this form of OOH advertising actually went down. Billboards are noticed, and the bigger they are, the better is the impact,” Borse said.

Sam Balsara, chairman and MD, Madison Communications, says, “There’s a sense that we’re trying to fix something that isn’t broke yet. At 7% of the ad pie, OOH media grew at 28% last year. So, certainly something must be right about the existing majority share of billboards. But let’s understand that outdoor is an intermediate business. Doubling the prices won’t mean the market will double.”
c_arcopol@dnaindia.net