Top Story


Home >> Out-of-home >> Article

OOH industry looking for consolidation in rates

Font Size   16
OOH industry looking for consolidation in rates

Gaining brands’ lack of trust has been an issue plaguing the outdoor advertising industry. One of the key reasons for this is that the industry does not have a flat, fixed rate list.

Advertising rates of outdoor media formats are based on a myriad of factors, which are not only not limited to the number of units, but also largely depend on the size of the medium, duration of the campaign, number of markets purchased, time of year, market population, location, traffic, demand, and other market conditions.

Each market has specific demographics such as population, ethnicity and affluence that affect the average billboard cost and rate for outdoor media showings. For instance, billboards in Mumbai carry much higher billboard rental rates than same sized billboards in Hyderabad, primarily due to the difference in population and audience size, that is, the number of consumers who will have an opportunity to see the billboard.

Within a given market, each media format carries a different value depending on its impressions, which is used to calculate billboard prices. An impression is a commercial rating that many agencies use to measure the number of people who will actually see the advertisement. Every agency has different sets of parameters to determine the campaign result. Factors such as size, distance from the road, and illumination affect a billboard’s impact on the consumer, share industry experts.

Billboard rates may also vary based on market population, pedestrian or mall traffic, and ridership of transit media. Demand also plays an important role in billboard cost. LED media formats and high-traffic transit stations in the heart of cities have a long list of advertisers waiting to display their message. The proximity of certain advertising to airports, shopping centres and other attractions also increase demand and price. Further, other events and timing make outdoor inventory more expensive and can impact rates, such as large sporting events or beach adjacent inventory in the summer months.

Given these complexities, Indian brand owners often face a tough time deciding on a media plan. In the current situation, one needs to negotiate hard to get the right price as it is seen that media owners tend to keep a lot of buffer. This also impacts media budgets significantly. Currently, the process of media buying is largely relationship-driven. Consolidation is what many players are looking at to bring systems in place, but this process hasn’t taken off significantly. Meanwhile, brands are looking at a number of alternate ways to use their money wisely on outdoor landscapes.

Fixing long-term deals
Long-term outdoor campaigns at a fixed spot have not only created landmarks for brands, but also help them save money. Amul, Tata Housing and HCL are some brands that have been using this strategy and created outdoor impressions at prime locations throughout the country.

Taking the innovative route
Today, brands are looking at breaking through the clutter by investing in innovations in outdoor. Creative planning and in-depth media location studies have helped brands use their budgets effectively. Brands are looking at collaborating with agencies or directly with outdoor media owners to roll out one-stop innovative displays.

Going forward, it will be interesting to see what strategies marketers come up with to stretch their budgets for outdoor campaigns without additional burden. On the other hand, industry stakeholders such as media owners and agencies should seriously start to look at introducing a transparent methodology of pricing in order to gain brands’ trust in the long-term.

Tags Amul Tata Housing HCL Rate card Outdoor Transit Priyanka Nair

Arati Singh, Channel Head, NDTV Good Times, opens up on how she loves to go on adventurous trips on a typical weekend.

In week 9 of BARC ratings, the channel led the lifestyle space with 1206 million impressions followed by TLC, FYI TV18, Food Food and Fox Life

During his brief visit to India, Ronen Mense, Vice- President- Asia, AppsFlyer, spoke to exchange4media about app marketing and the new trends one can witness in mobile marketing.

Neha Kulwal, CEO, Admitad, talks about the future of affiliate marketing and the company's growth over the years

One of the latest entrants to the IPL club, Kent RO Systems recently announced its sponsorship deal with Kings XI Punjab

The shortlists in the Media, Publisher, Creative and Branded Content categories are now up on the website

According to BARC India data, English news genre grew by 2.76 per cent whereas Hindi news genre saw a 30 per cent growth during North East Assembly elections results on March 3