Nagpur Metro media tenders receive mixed response from investors
By Bhawana Anand - January 12, 2021
While some media owners are opting for a wait & watch strategy; some are planning to invest in the media
Recently launched Nagpur Metro has initiated tenders to award media rights for advertising and branding purpose. The tenders rolled out are 1) License of exclusive outdoor advertising rights between the piers of Reach - 1 of Nagpur Metro rail project for a period of 5 years, and 2) Awarding of exclusive train wrapping rights for Nagpur metro trains on reach - 1 and / or reach - 3 of Nagpur metro rail project for a period of 3 years.
The media rights tenders are quite crucial for the authority as Maharashtra Metro Rail Corporation Limited (also known as Maha Metro) has envisaged that 60% revenue of the corporation would be from non-fare box which also includes Nagpur Metro.
However, Media4Growth reached out to investors i.e., media owners to get their views on these tenders - on whether they are made business friendly or not. Answering this, Anup Gadge, Owner of Grace Ad space expressed concerns in the media costing, duration and other tender propositions.
“The tender cost is quite high especially for the current times where the business has been affected for the longest time. Moreover, the demand for the metro media hasn’t established yet hence it is difficult to guarantee the ROI on this investment. Moreover, the duration given for 5 years seems less keeping in mind the investment needed to be made in terms of license fee, media construction and maintaining it,” explains Anup. As per the Nagpur Metro website, the bid cost is Rs. 6,50,000/- for piers media tender.
Moreover, Anup highlights that out of 6000 square feet of stretch given for the piers media, a huge number of portions come are not appealing to advertisers. Also, the placement of media doesn’t attract the visibility of travellers given their location.
“The Nagpur city has been receiving pretty overwhelming response on the traditional media because of its huge sizes, but metro media which is about 40-60 sq.ft is not even half of it therefore, it would be difficult to comment on the acceptability of this size,” adds Anup.
Contrary to this, Rohit Ahuja, MD, Varsha Outdoors, has already invested in the Nagpur media by taking exclusive rights for Airport metro stations and Bansi Nagar metro station as he expects a new wave of demand panning out in the next 6 months for the metro media.
Talking about the point of duration, Rohit says, “The municipal corporation bid tenders for 3 years but the metro authority is giving for 5 years which is a better proposition.”
Sharing his view on tender cost, Rohit clarifies that the Metro authority has invested Rs crore budget for constructing the Metro, and given that this is a reasonable amount.