Media owning firms in UP need to push up rates: Day Night Media

OOH media owning firms in the UP markets have been battling with a margin squeeze owing to falling rates for media. While this is the result of a fairly fragmented OOH industry structure in the region, OOH firms like Kanpur-based Day Night Media Pvt Ltd are preparing to shore up the rates to buoy their business prospects in the financial year ahead.

Sheikh Faizan, Marketing Head,  Day Night Media told Outdoor Asia that media owning firms in the UP markets are now cognizant of the urgent need to consolidate the rates offered to their direct clientele as well as to national OOH agencies. Lower rates have hurt the profitability of OOH media owning business, he stated, adding that the industry is already saddled with increasing tax burden imposed by the state government and local bodies. Faizan said the Service Tax has placed additional burden on OOH business.

Faizan asserted that the media owning firms in the state need to take concerted actions to deal with the issue of falling rates. "If we are united for this cause, the rates will go up,” he said.

Faizan said the joint efforts should also extend to influencing the state government and local bodies to introduce more industry-friendly outdoor policies and regulations. They contended that the OOH agencies should take a more partnering approach toward media owning firms and appreciate the ground realities. "After all, media owning firms are the ones that tackle all ground level challenges to facilitate outdoor advertising,” said Faizan.