By: Pray Jani
Last updated : July 01, 2021 10:16 am
Srikanth Ramachandran, Founder and Group CEO - Moving Walls Holding, moderated the session, ‘The Business Model Powering The Next Billion Outernet Digital Screens’ with Paul Leo Versley, Co-Founder, Lantern Media, and Vivek Kumar Director, Strategic Marketing - Cheers & FairPrice Xpress at the Quividi India Conference held on June 29. The session discussed sectors that would accelerate DOOH growth in India.
Srikanth stated how DOOH media was more expensive and offered lower quality a few years ago when it failed to penetrate into the Indian OOH market. But in light of the many technology advances being made now, it could be termed as the second wave of DOOH. He then put a question to the panelists - Given the timing, are the changes happening in DOOH now sufficient enough for the second wave to become a success?
According to Paul, timing is an important factor because it determines the readiness of the audience to accept a certain commodity. “Same thing happened with the smart phones. They failed due to their cost, which did not match their offerings. Smartphones became a success after iPhone’s entry into the market,” he pointed out.
Speaking about DOOH’s strong footing in the retail sector, Vivek shared some insights on its influence over retail businesses. “The retail media network adds a lot more business to our retail clients. They experience as estimated return of $11 on every dollar spent on the retail DOOH network,” he said. Vivek added that DOOH media owners will have a stronger proposition when they have their own assets, provide data on audience and campaign performance, and finally, provide value through this data. Additionally, there should be independent validation for data of the network to back the assessment, he said.
Finally, the session addressed the pricing factor, which has been a big question for the DOOH industry. Paul addressed this by saying, “CPM (cost per thousand impressions)
At the same time, DOOH CPM rates cannot compete with the rates of digital marketing CPM, he added. Paul felt that DOOH CPM must be impact adjusted since the ads on DOOH are far more impactful than the ones that are displayed on the phones. The DOOH impression is more valuable and as a result, the higher costs are justified, Vivek said, adding, “The effectiveness of the media must be looked into when determining the CPM model of pricing.”