Union Budget'17 to spur higher OOH spends, say outdoor agencies
Tax benefits for the middle class and small and medium companies will result in higher spending power, which could see more interest in OOH advertising, say industry experts.
Tax benefits for the middle class and small and medium companies will result in higher spending power, which could see more interest in OOH advertising, say industry experts. Another factor that could aid outdoor ad spends are the emphasis on rural economy, affordable housing, etc.
Bharat Rajamani, Executive Director & Solution Leader, Marketing & Advertising Risk Services (MARS) at EY India opined, “The cap of Rs 3 lakh on cash transactions will bring about transparency and boost tracking efficiency in marketing. Further, the budget recognised Metro rail as an emerging mode of urban transportation, which will again encourage brands to shift focus to transit media and make Out of Home (OOH) media more versatile.”
Rajneesh Bahl, Founder and MD of Grey Parrot Integrated, said the reduction in individual and mid corporate tax that will leave more money in the hands of people to spend on consumer discretionary, so these companies may spend more on advertising. “Also, more money in the hands of people may give boost to the two wheeler sector. Infrastructure status to low cost housing will give boost to realty, housing finance and cement companies helping them to spend more on outdoor,” he added.
Pramod Bhandula, MD of JCDecaux also agreed that the budget has elements that support the marketing and advertising industry and expressed his belief that ad spends would increase due to favourable business environment.
Sanjeev Gupta, MD of Global Advertisers, called the budget promising with its focus on rural economy. “More jobs will be created and hence the purchasing power will be improved. We are anticipating marketers will introduce new products for rural markets which will give us opportunities to broaden our portfolio. Traditional OOH mediums like hoardings will see rise in demand to tap the interest of new consumers as they are very popular in rural areas. With the relief to small tax payers given in this budget, the demand of affordable products and services will increase in the future. FMCG, real estate, electronic brands, which are prime advertisers on OOH, will strengthen their market share in small cities and villages. Overall, the budget has given significant boost to digital transactions and motivated us to go cashless during demonetisation, hence new payment gateways in OOH medium will also be seen,” he said.
Read more news about (internet advertising India, internet advertising, advertising India, digital advertising India, media advertising India)For more updates, be socially connected with us on
Instagram, LinkedIn, Twitter, Facebook & Youtube