Pratap Bose, CEO, Mudra Max, and COO, Mudra Group, spoke at length about the out-of-home (OOH) medium at the Media Review 2009, organised by the Bombay Ad Club, in Mumbai on July 17. He also spoke on sponsorships as a form of communication.
OOH and digital, and the magic the two can create
Bose noted that the OOH medium saw more than its share of the slowdown in the last year, and observed that it was uncharacteristic as historically, OOH had been one of the few mediums that had seen growth during recessionary times. “The reason for the slide was that OOH was too overpriced,” explained Bose.
He was quick to add that as the industry was recovering and as domains like media and entertainment were stabilising, the empty outdoor properties were likely to fill up soon. He also noted that the telecom sector was the largest contributor to the OOH industry in terms of ad revenues. Another fact coming from his address was that Mumbai had contributed 25 per cent to the entire OOH spends in the country in the last year.
Also, in the last year, the OOH industry had seen a drop in billboards and increase in other properties such as street furniture. Bringing the South East Asia market on the radar, Bose pointed out that India had a larger share of advanced tools and technology in the OOH medium in comparison to some of the other markets. According to him, the Indian OOH industry was at a good place, however, there was a need to “create value and propagate creativity” in the segment.
He further said that while so far, the OOH medium went hand-in-hand with radio, today OOH could create magic when paired with digital. However, it was important for the industry to realise this. He said, “95 per cent of all media crowd don’t understand digital, and that is an area we should focus on.”
From ROI to ROO in sponsorships
Bose took the audience quickly through sponsorships and how they could be used as a medium. He informed that today events sponsorships were growing faster than advertising revenues. He pointed out that the events industry in India stood at Rs 1,600 crore. He further took the audience right from the identification of a deal to finally closing it and looking at the deliverables.
One interesting point that came here was that gauging return on investments (ROI) in event sponsorships was still a problem for the industry as there was no form of measuring this mode of communication yet. Bose stated that reasons to enter a deal could vary from media exposure, creating awareness, increasing purchase and consumer commitment, among other objectives.
The conversation then led to the fact that in addition to ROI, Return on Objectives (ROO) was important too. ROO is the intangible part of the deal, but its importance has been growing.