Cashing in on all formats

Industry- FMCG

Spend on out-of-home advertising in TN

Tamil Nadu is one of our key markets and our investments in OOH are a function of the overall media and marketing objectives that we have set for each of our brands. That said, ITC Foods Division has launched several new products over the last few years and OOH has played a significant role in the overall media mix. Traditionally OOH budgets formulate approximately 8% to 10% of the overall media spends but we take OOH on a case to case basis rather than allocating it a percentage figure on a pie chart. There have been instances where we have launched products using only OOH, not even activation or print. You can call that 100% spend on OOH for a particular brand.

Key markets

Chennai is the most important market in the state, followed by Coimbatore, Trichy, Salem, Madurai and Erode. There have been instances  where we have launched some of our products exclusively in towns with POP STRATA of 1lakh - 5 lakh

Preferred formats which work better in this state

Despite the ban on billboards in the state, there are nearly 20 generic forms of OOH mediums in Tamil Nadu. We can proudly state that we have used all the formats for our various campaigns. Different formats have worked differently for us. What works in Chennai may not necessarily be the best option in the other markets in the state.

Comparing OOH in rest of Tamil Nadu (ROTN) with other states

Of the 32 districts in the state, nearly 25 supports OOH and this includes Chennai as well. But the biggest challenge till date is the market fragmentation as this leads to various other related issues. I would like to use the term'high vendor density per district' for the lack of any better phrase. This is primarily due to low entry barriers to the trade and also a function of high return on investment.  Barring the top 10 districts, it can be a logistical challenge on several fronts.

Exploring new formats

Despite the ban on billboards, we have used and are continuing to use any new OOH format that gets launched in the city. Traditional OOH formats like bus shelters, pole kiosks, mall and multiplex mediums continue to be our first choice.

Factors that would drive spend on OOH

I would state that each part will have to play its role. The industry and the authority body must strive to ensure that OOH is given its due in the form of regulations and ensure transparency on all fronts.