The OOH sector has had a positive start to
the year and agency heads are hoping for a pro-business and pro-growth
Budget that will ensure that this good run continues. Though there are
no OOH-centric expectations, the general consensus is that a budget that
supports growth and encourages investment will only lead to higher
spends on advertising and thus, benefit all facets of the advertising
ecosystem.
Sanjeev
Gupta, MD, Global Advertisers said, “After achieving a historic victory
in the Lok Sabha Elections 2014, we have high expectations from the
newly elected Modi-led Government. India is likely to emerge as the
world’s largest middle class consumer market with aggregated consumer
spends of $13 trillion by 2030. It has become essential for MNCs/ SMEs
to be visible on different advertising media to promote their services/
products. Therefore, outdoor advertising industry needs Government
support to grow in the future.” He further stated that the Centre should
focus on creating new opportunities, allow FDI, develop transparent
policies and reforms, address tax issues and licensing procedure of
public structures.
While stating that the outlook in general is positive for the coming
years, Rajiv Saxena, MD, Blue Ocean Media said, “We are expecting tax
reforms and interest cost liberalisation.” According to him, with such
reforms corporates will save more money, which could lead to higher
advertising budgets and ad spends. The outdoor agencies we spoke to
agreed that one of the main facets of the budget should be to create an
economy that promotes spending and investments.
Rajan
Mehta, Founder and CEO, LiveMedia added here, “Overall, for the media
industry, it is important that the Budget spurs investments through tax
reforms. Consumption is still low and the Government needs to bring in
liquidity (for consumers) so that spending increases.” Another important
thing, according to Mehta, is that I&B policies should be
comprehensive and be implemented properly.
Echoing similar thoughts, Atul Shrivastava, COO, Laqshya Media remarked
that the Budget should help bring down soaring prices and cost of
living and infuse confidence in investors. “This will allow more
disposable income to consumers and spends to increase, while also
increasing flow of capital in the market, which will improve sentiment
as well as availability of funds for new ventures.”
He also pointed out that some other steps to help consumers would be to
provide income tax relief and reduction of housing and consumer loan
interest rates. “Steps should be initiated/ charted out to reduce
India’s dependence on monsoon for agricultural output. Bad monsoon is
gloomy and brings down the market sentiment drastically. Connecting the
rivers is an idea being discussed in this connection,” Shrivastava
added.
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