Is TV's loss OOH's gain?
By Vjmedia Work Team - October 08, 2013
Significant limits have been proposed by the regulatory body with regard to advertisements on television limiting the duration of advertising on a broadcast channel. This obviously has lot of implications on the media spends by brands. Outdoor Asia spoke to a few brands and agencies to get an idea of what the new rule implies for the OOH medium.
Ashish Bhasin, Chairman -- India & CEO South East Asia, Aegis Group plc,
I don't think that the TV medium is co-related with the OOH medium anyhow. TV has several other aspects like sufficient channels and different TV slots to cope up with ad cap restriction. But I really think that OOH medium will grow and see double digit growth in the next 3-5 years. The key reasons for OOH medium's growth would be that people have figured out better ways to utilize this medium and another reason is that the young audiences is spending ample amount of time outside, therefore this medium becomes much more relevant.
The FMCG category has never made a significant use of OOH medium. But this will change consistently and this medium has more potentil for the FMCG category. I think Telecom, which used to be the highest spending category, has stopped and those gold days won't come back. But the OOH medium will see a lot of spends from the entertainment and movies categories. Also, the OOH medium will see huge impulse spends from e-commerce sites and therefore this area will grow.
Sam Balsara, Chairman & MD - Madison World
All other media could benefit from the paucity of TV time. It could be an emotional outburst from advertisers since no advertiser likes to pay a sharp increase. The Claimants will be Digital, and Print followed by Outdoor and Radio.
For Radio to substantially increase it needs to work on dual pillars of Measurement and Confidence.
K.B. Agarwal, Managing Director- Rupa & Company Ltd
Outdoor advertisements are one of the most cost efficient ways to reach potential customers and clients. Additionally, this type of advertising costs 80 percent less overall than television, 60 percent less than print advertisements and 50 percent less than radio advertising. We can target with OOH the consumers across culture, language, season, age, and in any format. In order to address GAPS in terms of marketing reach, OOH is the best customized solution for the organization.
We need to review our advertisement spend when it comes to Internet and OOH. Display internet and outdoor advertising posted the biggest gains in global ad spend during the first quarter of 2013, up 26.3% and 4.3%, respectively, according to Nielsen. We need to shift the advertisement focus gradually after TV spends to OOH. In fact our OOH media usage is heavy during Durga Puja which is the biggest Festival in East.
Digital Advertisement would get preference if we have to consider something over OOH, because, Display internet advertising grew 26.3% year-on-year in the first quarter of 2013, with impressive growth in Asia-Pacific (33.2%),Latin America (48.2%) and also Europe (10.4%).
Avinav Chaubey, AGM-Marketing, The Muthoot Group
The decision is likely to take place by the last quarter of this calendar year. I am hopeful that things will resolve for the common benefit of all yet, in worst case scenario, if it doesn't happen, we are sure that our TV budget will never be kept nil as it is an important medium. But having said that, as a brand, Muthoot Group has always been active in OOH medium, as it has always given us a multiplier effect on ground level. The large format with its local communication, singular pictorial representation, minimal and bold message, strategic locations, cost efficiency and media effectiveness help us deliver our key message to a large audience in an uncluttered environment. For us, OOH medium comes second in the media priority list after TV and is easy to monitor from our 4,300 plus branches.
Mainak Chatterjee, Manager Marketing & Admin, Senco Gold Ltd:
As a jewellery brand Senco Gold plans its advertising budget keeping the various benefits of the media platforms distinctively. We feel that reduction of TV slots will not affect us because the brand campaign approach of Senco Gold has a specific objective with regard to our target customers. For each FY we decide on a definite percentage. We have also observed that during the months from August to December, the rates of OOH sites go up comparatively, due to festivals. And for OOH we follow a totally different strategy and it mainly depends upon the sales figure at every quantum of the year. For example, when we come up with any new showroom or scheme in a particular area or for a particular showroom, we generally focus on taking different premium outdoor sites in that vicinity. It helps us giving that flexibility for reaching out to our niche segment. But at the same time as the electronic media has a greater reach, we would be requiring a very meticulous plan there in order to reach out to a greater mass as we are going Pan India.
Bidyut Nath, Head - Advertising & Corp. Communications, Dollar Industries Ltd
A marketing strategy needs a 360Âº media budget plan. So, we have always divided our budget accordingly. Even though there are huge changes which are going to happen with TV restriction, we may not pour the rest of the money into outdoor only. TV being the most important medium, there will be more spread. Of course there will be some preferences towards other medium like digital, BTL activities & outdoor. In fact, Outdoors has been gaining momentum with new techniques, new formats coming in and we will look at exploring creativity in still media and random visibility with the help of transit media
Deepika S Tewari, General Manager, Marketing- Jewellery Division, Tanishq
Outdoor advertising in India has seen a sea of change over the recent years. Changing consumer mindset is pushing the brands to go out and experiment with innovative OOH campaigns. It has always been a great medium to reach out to our audience as well as create mass awareness. With the reduction in ad slot on TV, brands will have to opt for other exciting mediums of advertisements. And with the growing scope and innovation in the OOH industry in India, I am sure consumers would appreciate more out of the box outdoor advertising. However, at times this medium might get restricting, but brands need to come out and experiment with different and more consumer engaging outdoor activities. At Tanishq, innovation, logistics and correct messaging are the key elements that are incorporated in our outdoor campaigns. So far we have received good response from our outdoor campaigns.
Prasun Kumar, Head - Brand, Communication and Insights, Reliance Communication
Yes, our OOH spends will see a significant lift going ahead as OOH is a key medium for us. In fact it would be in a combination of Core and Tactical deployment. Outdoor serves in increasing top-of-mind brand saliency, while allowing for localized geographic targeting and brand messaging. Our focus would be to enhance presence in the top telecom data towns and to drive innovations in key metros. Introduction of robust audience measurement metrics would go a long way in OOH getting its due share in multi-platform media plans.
Bedraj Tripathy, Senior GM Marketing, Godrej Interio.
Yes, the move will have a positive impact on OOH. However, the discussions with the Channels are still on. I do not think I will split it between TV and OOH; rather I will move it out of one and put it in the other. Which means, I either take TV with print as a support or I take OOH with Print as a support.. it is a little early to see functioning of the OOH at this point in time. But will look at some innovations for sure.
The Outdoor Asia view
So these are the things that emerge as some obvious pointers :
- Even if the limitation on TV comes into play, outdoor will still have to compete with print, radio and most importantly social media
- Innovations in the OOH space are thus critical now more than ever if the more brand spends have to be diverted towards this medium
- Transit media and activations likely to emerge as focus areas in the outdoor space
- Need for well defined measurement and ROI tools getting more critical now if brands need to be convinced on diverting budget towards OOH