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Will the demonetisation drive curb OOH spends?

By VJ Media Bureau - November 21, 2016

The demonetisation drive seems to have varying impacts on different industries, many of which take the OOH route to connect with their respective target audiences and consumers

The current demonetisation drive is expected to have varying impacts on key business sectors. While the banking sector is now flush with liquidity in the wake of unprecedented deposits of cash, non-banking finance companies (NBFCs), especially those with large footprints in the home loan segment, will see a difficult business terrain ahead as demand in the real estate industry plummets. From the OOH advertising perspective, the banks could become more proactive in rolling out campaigns, the dampener on real estate business notwithstanding, whereas NBFC campaigns might be more subdued.

FMCG and foods and beverages, major advertising categories in the OOH, are faced with a few challenges as the retail industry sees dip in business in the face of cash crunch across markets. But as the currency circulation problems ease, it would be business as usual for the FMCG brands, and the retail sector as such, and so the impact on their OOH spends might not be severe. However, if the demonetisation drive does hit farm incomes levels and factory output leading to lower disposable income in the coming months, then FMCG spends could take a dip.

Telecom, which is riding the 4G rollouts, might not be affected in any big way as regards the demonetisation drive and so these brands are likely to command a domineering presence on the OOH canvas.

The paints industry is expected to see a challenging period because of the real estate business scenario. Hence, the paints brand spends in the OOH space is hanging in the balance.

At this stage, the impact of demonetisation on OOH spends from these categories is speculative. If you have any suggestions and viewpoints on this topic, post your comments here.


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