This election, Kerala OOH sector to see 25-30% growth compared to 2014 polls: Experts
OOH players hoping for a boom between March and May to recover from losses suffered due to last year’s floods
Published - 05-March-2019
The battleground is set for the 2019 general elections and along with the political fraternity the players in the media industry, especially OOH, are looking to see how this season pans out for them.
The Kerala OOH industry is still recovering from last year’s floods and are pinning their hopes on the election advertising.
“The OOH industry in the state hasn’t completely recovered from the 2018 floods. But the election season is providing hopes to the overall industry,” said Chithra Prakash, Chitra Painters, an OOH player from Kerala.
According to industry experts, the OOH sector suffered a loss of Rs 60 crore in during the floods. Overall, the industry is estimated to have incurred a loss of Rs 200 crore. The Kerala OOH industry otherwise has a turnover of nearly Rs 350 crore per year.
“During the 2016 Kerala legislative assembly polls, there was heavy duty spending in OOH advertisement by most political parties, most of it coming from the BJP, Congress and CPI. Each party had spent between Rs 3 to 3.5 crore during the legislative polls with the total spends being estimated at Rs 10 crore. The 2019 Lok Sabha polls should also witness the same trend, and there will be a growth of 20 to 30 per cent during the period starting from the second week of March to the first week of May,” Prakash said.
Hariprasad Menon, Managing Partner, Hillari OOH Media hopes the same. “The elections will provide a fresh start to the OOH industry. During the 2014 Lok Sabha elections, Congress party would have hired around 400 hoardings, BJP 200, and CPI 150. This time around, in my opinion, Congress will be investing in 400 to 500 hoardings with BJP looking at around 200 to 250. Each of the major parties will be investing around Rs 3-4 crore in the Kerala OOH industry this time.”
According to Biju Babu, a veteran in the OOH industry, the Kerala OOH industry will witness a growth between 20-25% during election period.
“Political parties will be spending crores for election campaigns across all medias. This time, BJP is likely to spend more in the state of Kerala. The OOH industry will witness a growth between 20-25%, with each political party investing around Rs 3-4 crore in the OOH sector,” said Babu.
According to experts, BJP is pinning their hopes to open more accounts in the state of Kerala, hence they will be heavily investing across all the medias.
“The OOH industry will witness a growth of around 25% compared to the last general elections. Apart from major political parties like the BJP, Congress, and CPI, regional parties like BDJS, IUML, JD(S) will also be major spenders during this election period,” said Krishna Kumar, Media Consultant at Kerala Vision Channel Broadcasting.
According to Haresh Nayak, Regional Director, Posterscope APAC & Managing Director, Posterscope Group, the TRAI regulations will also provide an edge to the OOH industry during the 2019 Lok Sabha elections.
“As per the new TRAI regulation, the consumers have options to choose the channels of their choice and this will affect the reach of TV. Hence, the OOH spending will be doubled,” said Nayak.
According to another industry veteran, the TRAI regulations has made TV viewing expensive.
“Since consumers have an option to choose channels the reach of major channels among the audience has come down. The TV space is turning to be expensive and to a certain extent ads are being channelised to OOH. A similar pattern will be visible during the election period as bill boards and hoardings are one of the easiest ways to connect with the common public. The industry will definitely see a growth of 25 to 30 per cent during this election compared to the 2014 polls,” an industry source told exchange4media.
The 2019 polls are crucial for both UPA and NDA and states like Tamil Nadu hold importance on account of the BJP-AIADMK alliance.