PM, Narendra Modi writes to Global Advertiser's MD, Sanjeev Gupta

Global Advertisers would like to thank our honorable Prime Minister Shri Narendra Modi Ji for taking out some time off his busy schedule to revert to our letters. It makes us happy and fills our heart with immense joy with the way he reaches out to us, i.e. the common man. This indeed has bought a beautiful start to our New Year. We wish him & his team good health, success and optimism.

Global Advertisers is the go-to brand in outdoor media having joined hands with multiple media houses, film productions and corporate entities. For more details and queries, check its website http://www.globaladvertisers.in/ 

Sanjeev Gupta congratulated BJP MP Manoj Tiwari

From the silver screen to the Lok Sabha, actor turned politician, Mr. Manoj Tiwari successfully surpassed the AAP and INC candidates from the North East Delhi constituency as a BJP candidate.

Congratulating on his phenomenal victory, Sanjeev Gupta, Managing Director, Global Advertisers said "Manoj is very hardworking, determine and extremely talented person. His success speaks volumes for him and I heartily wish him on winning the Lok Sabha seat in North Delhi".

Mr. Sanjeev greeted him with a bouquet of flowers at hotel Sea Princess, Juhu on 3 June, 2014.
It is noted that Manoj Tiwari defeated Congress leader and AAP from North East Delhi seat and helped BJP for clean sweep for BJP in Delhi by 7-0.

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OOH industry buoyant after landmark NDA win

Following the BJP-led NDA’s sweeping win at the Lok Sabha Elections, there is a sense of optimism among India Inc. The general opinion is that this feeling of well-being will lead to further investment by brands and a loosening of purse strings, which will also help the advertising industry, including the outdoor segment.

A government change, pointed out some agency heads we spoke to, usually increases confidence. For example, Sunder Hemrajani, MD, Times Innovative Media gave the example of 2009 when the UPA did much better than expected. “We saw an increase in positive sentiment even back then. It is the same this time; I am seeing a lot of positive sentiment. April and May have been very tight for all media but I feel that things will be even better this time than 2009,” he said.

Though sentiment from India Inc. has been leaning towards a Modi-led government with its promise of development and progress, the new prime minister’s recent statements and energetic first few days since securing victory have also helped. “He (Narendra Modi) seems to be continuing with the same motto that he used in Gujarat. Since advertising is perception driven, we could see an increased spending this year,” said Rajiv Saxena, MD, Blue Ocean Media.

On being asked whether there were any specific changes that were expected for the OOH sector, Saxena opined that spending from real estate and telecom, two sectors which had reduced spending last year, might increase.

The election year saw a windfall for most OOH agencies, who normally expect a slow start to any year with business usually picking during the festive seasons. For example, even after the results were declared, BJP launched a massive outdoor campaign thanking voters for their support.

The Mumbai leg of the campaign was handled by Bright Outdoor Media and Yogesh Lakhani, CMD of Bright Outdoor Media informed us that it comprised of some 135 hoardings across Mumbai. Given the general sense of optimism in the market, he mentioned that business could improve by as much as 10 per cent. “In any business there is always a positive and negative cycle. For the last few years we have had a negative cycle, so things definitely have to change now,” he said.

Another way of looking at the massive OOH campaigns run during the elections by political parties is that it showed the strength of OOH advertising in creating recall and spreading awareness, opines Sanjeev Gupta, MD, Global Advertisers. He expects more and more brands to spend on OOH advertising. When asked for his expectations, Gupta said that June-July will see a lot of advertising from FMCG brands, tourism, real-estate, e-commerce, automobile and education sectors also.

The OOH sector has had a good start to the year and with the positive sentiment in the market, it is no surprise that most OOH agencies are expecting a boost in ad spends by brands in the coming months. What remains to be seen is whether this will continue past 2014 and how do OOH players make use of this perceived change in the business cycle to create a more robust outdoor advertising ecosystem, which is even more attractive to advertisers.

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After Congress and BJP, AAP enters 'outdoor' fray

MUMBAI: Barely days for the city to go to polls, and a party which had hitherto relied on unconventional methods such as word-of-mouth, foot soldiers and dharnas to gain popularity, has finally taken refuge in mainstream advertising, albeit out-of-home (OOH).

Indeed, the Aam Aadmi Party (AAP) and its most public face, Arvind Kejriwal, are the latest to find their way to a string of hoardings plastered across Mumbai in the lead-up to voting day on 24 April.

In the hoardings, Kejriwal is seen asking Mumbaikars for votes, alongside slogans in Hindi which read: “Jitne Sitam Karna Hai Kar Lo, Lekin Desh ko Badal kar Rahenge”, “Is baar Imaandaar” et al.

 According to Global Advertisers, which has the mandate for the main political parties, while BJP and Congress are utilizing 17 to 20 per cent and 25 to 27 per cent of the total outdoor hoardings, respectively, AAP is utilizing only 7 to 8 per cent.

In terms of monies spent, “If Congress is spending around Rs 50 crore and BJP about Rs 20 crore on outdoor, AAP, which does not have as much money as BJP and Congress, should be spending much less than Rs 3 to 5 crore. However, it is important to note here that unlike Congress and BJP that are creating a very strong presence through TV and print advertising, AAP’s advertising backbone comprises just outdoor and word-of-mouth,” informs Global Advertisers managing director Sanjeev Gupta.

 For AAP, the outdoor agency is currently focusing on Mumbai’s high-visibility regions such as Worli, Andheri, Dadar and Thane. Despite having been approached at the nth hour, the agency’s media planning and buying teams have selected some of the best sites for the party.

In this election year, Indian advertising is expected to witness an overall boost of around Rs 1,000 crore from political advertising, with outdoor advertising expected to see a 10 per cent rise within that. “We at Global expect to witness as much as a 30 per cent rise in our revenues just from political advertising,” says Gupta.

While TV and print exude national presence, outdoor is very important for parties to reach out to masses who stay in the country’s hinterland. “And since the 2014 elections are being considered to be one of the toughest elections of all time, parties are more than willing to dig deep into their pockets and spend on advertising, especially outdoor, since their vote bank lies within these tier 2, 3, 4 markets,” Gupta points out.

 

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Election tracker: Battling it, out-of-home

 
MUMBAI: This general election may be the first among many, where media has been so extensively (and blatantly) used by political parties and their prime ministerial hopefuls.

Far from fighting shy of marketing themselves, the main players – Congress and BJP – have spent nearly Rs 400 to Rs 500 crore each on publicity campaigns. An additional Rs 500 to Rs 1,000 crore will be spent on related activities such as banners, hoardings, organization of public meetings and transportation of key campaigners, among others. Not surprisingly, media agencies estimate around 2 to 2.5 per cent of overall advertisement spends this year to come from elections.

One can switch a channel, turn a page or surf away, but hoardings are hard to ignore or even miss. And this is the reason why of the whole advertising budget, parties are spending approximately 10-15 per cent of the total budget i.e. close to Rs300-400 crore on OOH, if not less, as per industry sources.

Possibly, with advertising rates on general entertainment channels (GECs) on television being prohibitive and posters having been banned in several cities of the country, outdoor remains the only viable option for election propaganda as it is cost-effective and has high reach as well. So you have hoardings of calling for a ‘Modi Sarkar’ or boating of ‘Bharat Nirman’ with NamO and RaGa staring down at you from the most non-descript locations in the country. What’s more, they have illumination for better visibility at night.

With elections just round the corner, outdoor advertising has picked up significantly, mostly fuelled by political parties, which is quite unlike the usual scenario where outdoor advertising is more prominent during the second half of the year.

Speaking of the growing appeal of OOH, Madison OOH Media Group CEO Arminio Ribeiro, says: “Given the flexibility of this medium in terms of narrow- and broad- casting and its localization and rapid awareness build-up benefits, outdoor has appealed to political parties to get their message across to the electorate through its multiple formats.”

In order to get the best quality hoarding, tapping the most crowded route through buses or railway has certainly increased the competition. Everyone is trying to avail the benefit of this golden opportunity and those who have the diverse range of inventories are the main gainers.
  Sanjeev Gupta, managing director of Global Advertisers, which has been roped in for outdoor by both Congress and BJP, says, “With changing trends, political parties have also changed their approach and have become more professional. Therefore, our media plan included a mix of outdoor inventories to expand the reach of these campaigns and we expect to see more demand for outdoor in the coming months.”

While Postercope Asia Pacific regional director, Haresh Nayak, says: “Tier II and Tier III markets have been the focus for the last year, continuing to grow this year as well, showing deep penetration in rural areas to create brand awareness.”

 Indeed, the FICCI-KPMG 2014 report finds that the OOH industry has grown by 5.5 per cent from CAGR (2007 to 2013), what with clients from real estate, telecom, media, auto, and now politics, driving it forward.

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OOH signs up for growth

Submitted by admin on Tue, 03/18/2014 - 11:00

 

By ABHINNA SHRESHTHA

 

No matter which party comes to power in the 2014 Lok Sabha elections, it is the outdoor advertising industry that stands to emerge winner. Vendors of the Out Of Home (OOH) industry are optimistic that the elections, coupled with other factors, will again provide a much-needed fillip to the industry, which has been growing at a steady pace for the last couple of years.

Compared to previous years, 2013 has been a somewhat better year for the sector. Here are some numbers to get things into perspective: The outdoor industry formed 6.2% of the total advertising spends in 2013, according to the Pitch-Madison Media Advertising Outlook (PMMAO), in fourth place behind TV, Print and Digital. This Year Next Year, a study by Group M, too says that 2013 saw the OOH industry grow by about 6%, a remarkable achievement, considering that the growth in 2012 was about 2%. Despite many brand managers shifting significant budgets to digital and mobile spends, 2014 is expected to be another strong year for the outdoor sector (PMMAO predicts it will grow by 8.2%, while Group M’s studies peg the growth rate at 8.8-9%). So, what are the factors driving this general sense of optimism?

Q & A: ‘Concentrate on a particular area, format or niche’

 

THE POLL DRAMA

We have already seen the aggressive push towards advertising adopted by the Congress and Bharatiya Janata Party (BJP). Industry sources estimate that nearly Rs100 crore of the Congress’ ad budget has been lavished on outdoor advertising. It would not be wrong to assume that BJP will spend a similar amount too. The importance of this one event can hardly be overstressed. The outdoor sector generally starts picking up during the second half of the year, but with the elections in May, political spending on OOH advertising has been a welcome addition to a traditionally slow first half. We saw the same trend during the state assembly elections in 2013, which proved how vital OOH is for political parties.

Since most cities have banned posters, Outdoor remains the only viable option available for propaganda, along with radio as both are cost-effective and ensure reach. “All national parties such as BJP, Congress and NCP are geared for outdoor campaigns. Beside this, the outdoor industry will also get benefit due to its extensive reach in rural areas and Tier II and Tier III cities,” says Sanjeev Gupta, MD, Global Advertisers.

Analysts and industry experts also expect the general business sentiment to improve post the elections, which will further serve to loosen the advertising purse strings.

 

NON-TRADITIONAL OOH

Though hoardings and their ilk are considered the driving force behind OOH, the last few years have seen a lot of development in new forms of outdoor communication. We are all familiar with the remarkable growth story of transit media (including street furniture and bus/radio cab advertising). The medium grew at 13.9% last year and has consistently outgrown the overall OOH advertising space over the last couple of years. The Pitch-Madison report forecasts it to grow at 10% this year too. But transit is not the only ‘other’ option that is growing. Says Haresh Nayak, Regional Director of Posterscope Asia-Pacific, “The OOH medium has evolved in malls and multiplexes, whether it is pure display, engagement, or events. 

We have also seen growth in niche ambient environments, for example, cinema has grown by over 200%.” Electronics major Philips is one of the brands that is a strong believer in the efficacy of ambient media. “The efficacy and proficiency of ambient media is very strong as it creates a differentiated platform for the brands,” says Amit Tiwari, Country Head (Media) for Philips. “A lot of consumption of outdoor media, these days, takes place in malls and multiplexes. Also, since most LFRs are present in these places, it creates a direct connotation to the point of sale.” Another emerging option is captive audience advertising, which is digital displays, the ones seen at malls and coffee houses. Though still nascent as compared to its cousins, transit and ambient media, this is another interesting space. For example, Rajan Mehta, Co-founder and CEO of LiveMedia, which boasts of clients like Big 92.7 FM, CavinKare, HDFC Bank, etc., claims his company, which specializes in captive audience advertising, has been growing at a rate of 20-25% YoY. So, there is definitely an interest being shown by advertisers in this medium. “In the West, digital OOH is already mainstream. As the technology improves, it will also become cheaper and, hence, more viable,” he says.

Says Bharat Dhuppar, Omkar Realtors & Developers, “Real estate is now opening up to alternative OOH media vehicles such as cinema theatres, airport branding and even in-flight advertising campaigns. It works better because of the simple reason that the audience is in a captive environment and has to pay attention to the communication. It is a definitive component today in any media plan that gets made for a successful campaign.”

Even the entertainment sector, which is among the largest spender on traditional OOH, seems to believe in BTL activities. For example, when asked how significant mall activations were as part of OOH strategy, Amit Nair, Business Head, Zee Khana Khazana said, “We have always been strong when it comes to BTL activities. We do a lot of road shows across cities as well as workshops within malls. They are a great tool for creating consumer connect and brand recall also increases through these activities.”

Studies on the growth of traditional OOH sector and the current blueeyed baby - transit media - are easily available. However, there are not many comprehensive studies available on other outdoor media platforms. With better data, interest in these platforms will continue to increase.

NEW INFRASTRUCTURE PROJECTS

A major reason for the growth of transit media has been the rapid infrastructure development seen in the country and this will continue to boost the outdoor industry in the coming months. Ad spots at locations like the Metro in Mumbai and New Delhi and the new airport terminal at the Mumbai International Airport are highly sought after by advertisers. “Revenue growth will only happen through new infrastructure projects such as the Metro and new airports,” says Rajiv Saxena, MD of Blue Ocean Media. However, Sunder Hemrajani, MD of Times OOH cautions that though infrastructure development would be a growth driver, it needs to be looked at from both the demand and supply side. “New infrastructure projects improve the supply of good, high-quality media but one also has to consider the demand side of the equation. We need to provide innovative and complete solutions. There is need to show the advertiser the right value proposition,” he said.

Echoing this view, Sanjay Chitkara, Head (Marketing) of LG says, “Outdoor is an evolving medium – urbanization and new infrastructure such as shopping malls, offices, express highways, etc., have   created tremendous opportunity to innovate with the outdoor medium. Concentrated joint efforts by all the stakeholders will help leverage this opportunity in a more constructive manner.”

ALL EYES ON DIGITAL OOH

Digital OOH, or DOOH as it is referred to, is perhaps one of the most exciting new things to emerge in the OOH space. According to a recent study by PQ Media, the average global consumer was exposed to various DOOH media for 14 minutes per week in 2013, a 75% increase from eight minutes in 2007. The report names the US and China as the largest and second largest markets for DOOH in terms of revenues respectively. Other significant markets in terms of exposure and revenues are the UK, Canada and Australia. Interestingly enough, an earlier report by the same agency had stated that global DOOH revenues will expand at a 21.3% CAGR in the 2011-16 period.

The situation in India is not that rosy, though inroads are being made over the last few years. Though brands seem to have welcomed the concept, regulatory issues are proving a hindrance. A report from consulting firm PriceWaterhouse Coopers for the period 2013-2017 states, “Growth markets and the impact of digitization will drive the rise in global OOH advertising spends. There will be double-digit CAGR growth in two countries: India (11%) and Brazil (10%).”

“As with most technological advances, it isn’t what the technology enables you to do but what you do with it. Creativity is the game-changer that will make the difference between a bland communication and one that’s breakthrough,” comments Farrokh Madon, Chief Creative Officer of Y&R Advertising. Brands are obviously excited about the possibilities of digitization when it comes to OOH. “It (DOOH) will be crucial and cause a positive disruption. All the current rules will go out the window. The agility, responsiveness and the ability to track that it will bring is going to be phenomenal,” says Satinder Juneja, VP (Sales & Marketing) of NIIT Technologies.

Sudeep Narayan, Director (Marketing & PR) of Volvo Auto India, also calls digital OOH a “game enhancer”. “Digital signage can be compatible with other devices like smartphones, profile the audience and target ads accordingly. This implies both personalization and customization,” says Karan Bajwa, MD of Microsoft India. For now, we can take a look at some examples from around the world to see the kind of potential digital OOH holds.

CHANGING EXPECTATIONS: CREATIVITY & INNOVATION

Customer engagement is the new mantra for advertisers and the OOH space is no different. The problem, as Amitesh Rao, Director (Brand & Media) of MTS India puts it, is that you just get a fraction of a second to take in the ad. Brands want a way to break the clutter and many large outdoor agencies are increasingly working with brands to develop innovative and creative solutions. Says Rajneesh Bahl, CEO of Percept Out Of Home, “It is more about creative enhancement. Over the last few years, we have seen brands demanding creative ideas from outdoor agencies.”

With the outdoor industry needing to compete with new advertising mediums such as digital, mobile and social media, the industry needs fresh perspectives, says Chitkara. And this has been happening over the last few years. An even more interesting development is the way advertisers are utilizing technology to carry out innovative cross-platform promotions. For example, recently Mahindra Reva combined Twitter with the OOH medium in an integrated campaign. There a few other examples of brands experimenting with new technologies like RFID tags, QR codes, augmented reality, etc. With OOH advertising now having to compete with rapidly evolving and highly engaging platforms like digital and social, the integration of technology into OOH campaigns is bound to keep increasing.

THE BOTTOMLINE

There is a general perception that the digital medium has eaten into traditional OOH’s share and this is true to an extent. Lack of a measurement metric, among other issues, has hampered its growth in recent times. However, the emergence of new technologies and innovations, as well as growing interest in new mediums other than traditional hoardings, looks set to boost the OOH industry in the coming months. The challenge for OOH players is whether they are able to use this as a springboard to perform even better beyond 2014.

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Brand Narendra Modi assigns outdoor duties to Global Advertisers

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