On the back of a great 2014, the OOH sector is hoping to build on its success in the coming year too. With political stability in the centre and certain sectors like automobile and telecom once again ready to spend, agencies are expecting ad spends to increase even further this year.
However, there are still some hiccups with traditional spenders like retail and real estate.
Sanjeev Gupta, MD of Global Advertisers, says there is enough existing, ready to sell real estate stock to last two years. This coupled with liquidity crunch and high lending rates have made the going tough for the real estate sector, he claims.
“These factors are at work across all important sectors like retail, manufacturing, jewellery and apparel, electronics and banking. One expects these conditions to prevail for the better part of next year. The most important response from the advertising industry to these challenges has been a willingness to craft campaigns that are shorter, cost-friendly and also make concessions in bill settlement schedules for clients,” he opined.
Others like Blue Ocean Media MD Rajiv Saxena feels that real estate and government spends will be better this year and contribute to an improvement in the ad spend scenario, though he agrees that things will be much clearer by the end of March.
“As I see, 2015 will continue to bring in & also accelerate the growth in the OOH industry as a whole. More importantly, the thing that encourages me is that all the four major stake holders in the business, viz. clients, agencies, media owners and regulatory authorities have started to understand and appreciate the efficacy of the medium as also that standard processes and protocols are required and concrete steps are being taken to bring in core changes in the way this business is structured and run,” said Kaushik Chakravorty, Co-founder and Director of Street Talk.
Both Gupta and Hiyav Bajaj, MD of TDI, expect the OOH sector to grow in the range of 10-15 per cent in 2015. Saxena also said that ad spends on OOH are expected to be better than 2014.
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