South Delhi Municipal Corporation takes the digital path to reach Rs 150 crore in revenue 

The municipal body has been reaching out to brands to opt for OOH ads and plans to convert the municipality into a digital arena, Prem Shankar Jha, Deputy Commissioner, SDMC, tells exchange4media

e4m by Anjali Thakur
Published: Jul 26, 2019 8:36 AM  | 3 min read
OOH

The South Delhi Municipal Corporation (SDMC) has surpassed the earnings of municipal corporations of other states, including Delhi-NCR, with a revenue of Rs 150 crore achieved in FY 2018-19, a target it had set aside for FY2019-20, Prem Shankar Jha, Deputy Commissioner, SDMC, has told exchange4media.

SDMC’s continuous efforts at cracking down on illegal advertisements in the city and promoting digitization are believed to have given the civic body an edge over other municipalities and this is truly reflective in the revenue figures. 

A look at SDMC’s earnings in the last three financial years reveal a gradual increase. While it was Rs 43 crore in FY 2015-16, it jumped to Rs 118 crore in FY 2016-17 and eventually Rs 134 crore in the fiscal year 2017-18. 

Thus, in the last few years SDMC has indeed upped their game in the OOH sector.

Asked about the target for FY19-20, Jha said they were targeting Rs 150 crore and assured SDMC would yet again go past the target just like the previous ones.

The civic body even has an upper hand over Brihanmumbai Municipal Corporation (BMC), which has recorded earnings of around Rs 85 crore, North Delhi Municipal Corporation (NDMC) - Rs 30 crore, East Delhi Municipal Corporation (EDMC) - Rs 10 crore and Municipal Corporation of Gurugram and Noida Authority’s Rs 20 crore, Jha said.  

SDMC is also reaching out to the corporate sector to get their focus back on OOH. “We haven’t had any interactions with corporates or brands. Out of the four modes of advertisement - Television, Social media, Print and OOH – for brands Outdoor is the last priority. We want to convince them that ‘if you choose to advertise with outdoors, then you will be doing something for the city as well’. There are four stake-holders - brands, media agencies, local body and consumers. And somehow brands are neglecting the most important stakeholders - the consumers,” Jha told us.  

“We are reaching out to brands and planning to conduct a brand meet soon, later next month. If brands plan to collaborate with us, it will also give them a mileage because in a way they will be doing something for the city,” he added.

The civic body is also planning to formulate a policy to start Electronic Static Display in the next three months to convert the municipality into a digital OOH arena that would charge a premium, be environment-friendly and also add to the state’s coffers. “Traditional Out Of Home is not bio-degradable; it is difficult for us to dispose those items. Interestingly, there are a lot of advantages of digital advertisements: one can change an advertisement with a click, and public messages can be floated too in the same medium. For instance, if I want to float messages for disaster management, I can display the same message at various hoardings at different locations. In a SOS situation, it is also very useful. This will also add to the revenue and it is a win-win situation for everyone,” Jha said.  

According to the Deputy Commissioner, the only drawback of a digital advertisement is that it may distract drivers. “But we have come up with a solution for that. We can use advertisements, not of certain luminous intensity so that they don’t distract. We will not allow videos in these advertisements. Then I think it can do wonders.”  
 

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