Monday, December 21, 2009

Beating recession

Beating recession and how! Global Advertisers

shows the way…

India Infoline Research Team / 05:20 PM , Dec 17, 2009

Are Big blank hoarding spaces still announcing a pall of gloom over outdoor advertising agencies? Not anymore -- Not for Mumbai’s leading Out-of Home (OOH) advertising agency "Global Advertisers", at least. Unlike most other outdoor advertising companies that have decided to wait and watch, Global Advertisers is riding high on its "Every Location Every Opportunity," brand statement and has spawned a refreshing assortment of innovative OOH advertising avenues for their clients.

And how! By planning out options of short rotational schemes for its clients, Global Advertisers has allowed the flexibility of doling out multi-category advertising options for a given time and a given budget. "The unique and innovative option is 100 percent value for money for our clients. In fact, in the recent months, we have won more clients, all of whom are gladly availing our low-cost rotational schemes. We are leaving no stone unturned to figure out the best medium to target customers," says Sanjeev Gupta, Managing Director of Global Advertisers.

Statistics reveal that in metropolitan cities like Mumbai, outdoor advertising with respect to hoardings is suffering the country’s worst 40-50 per cent vacancy. Global Advertisers, too, saw their profits plummeting to 40 percent during the initial phase of slowdown. "Nevertheless, the company’s new formats and new technologies for out-of-home communication, commended as being the key to the growth of the industry, are slowly replacing the one-stop concept of hoarding business. "The good part is that these trends are emerging fast and are adapted almost instantly, crossing all geographic and demographic boundaries," Gupta points out.

According to him, the company’s low-cost rotational scheme incorporates exciting and hit, attention grabbing OOH advertising ideas for mobile vans, station branding, neon signs, bus stop, buses, site panels, multiplexes, and mall branding and so on. They include cluster advertising, ground activation fairs, human chains, marathons, Ad bikes, Ad people, and Ad screens and many more. The company’s advertising options -- inside swimming pools, inside multiplexes and amusement parts, onboard airplanes and ferries, and restrooms and subways -- make its rotational scheme exclusive. With regard to rural communications, ideas are being weaved around on the latest digital wall tattoos and it is emerging to be a hit in its category. 

Clients of Global Advertisers making hay with the company’s short rotational schemes include Sony TV, NDTV imagine, LIC, Big Bazaar, Eiffel Builders, Zee TV and film industry. Global recession and the corporate cost-cutting spree notwithstanding, OOH advertising is still acknowledged as the most effective form of advertising due to its low cost and high reach across large and diverse audience, the clients opine. 

Citing the example of the advertising trends of Indian film industry, Gupta said, "Film industry that used to previously use outdoor media for their film releases at least 21 days before a new film is released has now curtailed it and it just uses outdoor media for 7 to 10 days only because of affected finances and lack of funds for big budget marketing. Now with Global Advertisers’ varied short rotation advertising schemes, our clients in the film industry are happy because we are able to provide them with the reach they are seeking for lesser spends."

Global Advertisers is expanding and is planning to enter the Dubai and Canada market by next year. Currently, the company is also on the look new medium out for acquisitions for the client services.

The Slowdown Effect: The OOH media has grown at a compound annual growth rate (CAGR) of 17.3 percent over the past three years, and is estimated to have reached Rs 16 billion in size in 2008, a growth of 14 percent over 2007. The sector's performance was affected in the second half of the year owing to the overall economic slowdown. It is projected to grow at a compounded rate of 12.8 percent over the next five years and reach a size of around Rs 29.3 billion by 2013. Currently, the growth is centered largely in tier I towns, with metros accounting for more than half of the total OOH market. Sectors spending the most on this medium include telecom, media and entertainment and financial services companies.

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