Delhi’s three civic bodies expect INR 100 crore combined OOH advertising revenue loss
By M4G Bureau - September 24, 2020
A standing committee has been appointed to figure out the option to reduce the loss; Media owners waiting for rebate scheme
In view of the severe impact of the Covid19 crisis on their businesses, the three municipal corporations of Delhi: North Delhi Municipal Corporation (NDMC), South Delhi Municipal Corporation (SMDC) and East Delhi Municipal Corporation (EDMC) are in fear of losing around INR 100 crore combined revenue from outdoor advertising.
However, a standing committee appointed by the corporations has been working to find viable options to reduce the loss.
In total, the three corporations usually earn around INR 200 crore from advertisements. Out of which, SDMC earns around INR 140 crore; NDMC around INR 40 crore and EDMC around INR 10 crore.
Delhi based media owners’ representatives had made a representation to the standing committee seeking a rebate on license fee in the end of May. But, no final decision has been announced yet.
The owners want the relief as brands have cut down on their advertising expenditure on the OOH since lockdown started. Although traffic on roads is coming back to normal and there is an increase in footfalls at hangout spots, the brands are sceptical about their investments on the outdoor branding. 80% of vacant outdoor inventories in the capital are expecting some investments from advertisers in coming festive months. Automobile and mobile handsets are the two biggest spending categories in the Delhi market which are yet to shell out budgets on the OOH branding.
The state government of Punjab and Rajasthan have already announced their respective relief schemes for outdoor advertising contract holders.