Budget 2014-15: Focus on physical infrastructure projects will create new OOH assets
By Rajiv Raghunath - July 11, 2014
FM has proposed Rs 100 cr for Metro projects in Ahmedabad & Lucknow, development of airports in Tier I & II cities, and urban renewal plans which will spur city beautification projects
While the major concessionaires see bright prospects in this segment, they would want the concerned authorities to grant exclusive ad rights for each network for periods up to 15 years. In addition, they would want the contractual terms to have built-in flexibility for executing innovative branding of the Metro rakes. By creating new opportunities for innovations, the concessionaires would be able to address the demand side of business.
The Finance Minister has proposed more airports in Tier I & II cities. Given that airports form the upper crust of OOH advertising, new airports, once developed and operationalised, will create a whole new range of OOH opportunities.
The Budget has allocated Rs 7,000-plus crore for "smart citiesâ€, which are either new satellite towns around existing cities, or upgradation of existing mid-size cities. This could spur city beautification projects that in turn could have a beneficial impact on OOH media.
The Finance Minister has also trained focus on highway development and development of waterways, which could also pave the way for creating high quality OOH media assets.