Chandigarh UT Administration notifies sharp increase in outdoor ad fee
By M4G Bureau - November 13, 2019
The notification includes new rates for digital display and transit advertising
Aiming to increase the Chandigarh Municipal Corporation’s outdoor advertising revenue, the Union Territory Administration has issued a notification for revising the advertising fee to almost double for outdoor displays in the city. According to the government gazette document obtained by Media4Growth, the Chandigarh Advertisement Control Order, 1954 has been amended as Chandigarh Advertisement Control (Amendment) Order, 2019. The order is coming into force with immediate effect. Further, the advertisement fee on all categories will be increased @ 5% from every year, beginning April 1, 2021.
As per the 2019 proposed rates, for advertisements on hoardings, walls or posts or in the form of non-illuminated sky-signs, the rate for a space up to 10 sq. ft. is Rs 2,400, for over space over 10 sq.ft and up to 25 sq.ft it is Rs 4,800 and for every additional 25 sq.ft or less, it is Rs 6,000 annually. And for hoardings that have no ad display and bearing the name of the advertiser or with the announcement 'to be let' display will also be charged.
The notification also covers digital OOH displays which will be charged Rs 4,000 for a space up to 2 sq. ft, Rs 8,000 for a space of over 2 sq. ft and up to 5 sq. ft, Rs 19,200 for a space over 5 sq. ft and 19200 up to 25 sq. ft and Rs 24,000 for every additional 25 sq. ft or less annually. This is a new category in the list which has been included to earn a big chunk of revenues.
Also, the amendment has imposed charges on transit advertising such as on cabs/auto rickshaw/private vehicles and buses, both illuminated and non-illuminated. For non-illuminated boards carried on vehicles solely for the purpose of advertisement for a space up to 50 sq ft, the advertiser will have to pay Rs 8,000 a month or Rs 80,000 annually. For illuminated advertisement boards carried on vehicles for space up to 50 sq. ft, the charges will be Rs 16,000 a month or Rs 1.60 lakh a year.
The new rates have been finalised and the new policy pending from last year will be framed by the corporation which will further be sent to the UT Administration for approval.
However, when Media4Growth approached for the industry reaction on this move, it was found that they were not familiar with the policy changes.