Brand Insights

Nirav Modi scam dents OOH to some extent

While the scam has hit the business, specialist agencies believe that there are no major longer-term implications

Published

February 28, 2018

Even as the country grapples with the enormity of the Punjab National Bank (PNB) scam perpetrated by Nirav Modi, Mehul Choksi and others, brand ‘Nirav Modi’ which was an advertiser on OOH has left a dent on the industry’s revenues. The brand was among the major OOH spends with an estimated Rs 25 crore annual OOH spends, and was seen on premium media sites. In the wake of the bank scam that came to light, and with Nirav Modi and his cohorts out of business in India, not only have the brand’s spends overnight stopped but a major specialist agency that was associated with the brand has run into rough weather with regard to revenue recoveries.

While one major agency that was dealing with Nirav Modi brand had obtained the payments before the scam broke out, another agency is now saddled with unrealised recoveries.

As regards the overall impact of the scam on OOH business, specialist agencies believe that the impact will be felt in the short-term but some other brand will take its place as a key OOH advertiser.