15-20% drop in OOH media revenue during monsoons: Industry Experts
The slowdown in spends during rainy season is not a new trend and according to experts it does not impact the overall business
Traditionally, monsoon is not the best time for brands to invest in Out Of Home advertising. Especially in cities like Mumbai where the rains lash the city hard, hoardings get damaged severely and low visibility issues during rains make roadside OOH a less-preferred option for brands.
In addition to the natural elements harming the industry, market conditions for these two months also results in a dip in revenues for OOH players. Media buyers say that most FMCG and consumer durable brands hold back their budgets for the festive season during the monsoon. Given the scenario, a 15-20 per cent dip in business is expected.
Haresh Nayak, Regional Director, Posterscope APAC & Managing Director, Posterscope Group India believes that monsoon does affect the business and generally it's not just Out of Home but other mediums too because of the overall seasonality of the business. “A lot of television and print advertising too happens around the festive season and not in monsoons. There can be a dip of 10-15 per cent in business but it's not a major fall.”
He added to counter climatic condition clients divert spends on non-roadside outdoor advertising like multiplexes, malls and corporate parks. “As soon as monsoons start the investments move to non-roadside outdoor. Clients advertise in coffee shops and malls. Out of Home advertising remains alive in the monsoon, it’s just the application that changes little bit,” Nayak mentioned.
Echoing a similar thought, a senior media planner asserted, “In India where monsoons are very intense there tends to be a bit of a slowdown in outdoor business because it’s exposed to the vagaries of the nature.”
He further added that business starts around Ganpati festival – the onset of festive season. “There is downturn around the monsoon period and that's the pattern we have been observing for several years now. Around 20- 25 per cent business gets affected depending upon the city. Monsoon goes down and festive season goes up has been the trend every year. Outdoor is doing better than last year. It's anticipated to have a 10 per cent growth, a double digit growth this year.”
However, not everyone thinks that monsoon will necessarily impact the business. Alok Gupta, Director, Graphisads shared, “There is no such impact so to say because outdoor is anyway a cyclic business. So June-July is comparatively a lean period not because of monsoon but because of market behaviour. Such times we also see spends on educational plans because it is the time of academic admissions. Most FMCG and consumer durable product companies hold back their budgets and spend during the festival season. Monsoon doesn't have much impact on outdoor business.”
When questioned about a particular category of clients who advertise more during rainy season, Pramod Bhandula, Executive Chairman, JCDecaux India said that there was a time when some tyre brands used to advertise in monsoons but now you hardly see such brands on billboards. Speaking on business during this season he said, “In India the impact of monsoon is only on the Bombay market, nowhere else. Rest of the markets works as usual. Mumbai being the major market get affected for two months but it's not a big one.”
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