Contracts & Investments

Barters pose cashflow challenges to Nashik OOH operators

Real estate brands are apparently offering real estate units to media owners in lieu of payments

Published

July 17, 2019

Nashik Even as real estate brand advertising is gaining momentum in the Nashik market, the media owners operating in the city are faced with the challenge of cashflow crunch as in many cases they are having to settle for physical real estate units in lieu of the payments that are due to them from the real estate advertisers. While barters of this nature are not uncommon in many markets, the media owners in Nashik are finding this situation unsustainable for their respective business operations.

“Lack of cash flow is problematic. We have to pay salaries; there are maintenance costs. All that cannot be done without cash,” laments Manoj Kenge, Proprietor of Make Advertising.

Also read | Railways introducing barter advertising on trial basis

Those getting the real estate units also find it difficult to liquidate those assets. “Real estate clients offer property worth Rs 50 lakhs and occupy hoardings for a year that costs a lot more than that. And it takes a lot of time to get cash out of the properties. But eventually we do end up with some income,” says Pravin Marathe, owner of Isha Publicity.

Today the trend has become so common in Nashik that some media owners are even advertising that they accept barter deals from clients. However, such deals are beneficial only for a short period of time and can have an adverse long-term impact for the trade.

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