The Rs 1,000-crore Percept Group, in a joint venture with Aegis Group, has announced the launch of Posterscope India.
Posterscope, part of GBP 7.1 billion Aegis Group Plc, is the world's leading out-of-home (OOH) planning and buying company. Jignesh Sharma, who was responsible for building Percept's OOH business, will continue as the CEO of Posterscope India.
Announcing the launch of Posterscope India, Harindra Singh, vice-chairman, Percept Group, says, "Posterscope with its creative approach to OOH is backed by technological innovations and proprietary research and tools."
"Coupled with our market insights, nationwide penetration and a strong track record in this market, we see Posterscope India as the beginning of a great partnership that will offer unparalleled value to clients and a logical extension of our existing relationship with Aegis in Carat," he added.
In an interview with agencyfaqs! earlier, Kim Walker, the ex- chief operating officer, Carat Asia Pacific had said that Aegis Group was looking forward to OOH business in India in a joint venture with the Percept Group.
The move forms part of Percept group's plans to consolidate its position in the fast growing Rs 1,300 crore OOH market. Percept's OOH business is currently the second largest OOH media service in the country with clients like Airtel, FedEx, SaharaOne, Phillips, Pantaloon, Kingsbury etc. It was the first agency to offer a 360-degree OOH communications including urban, rural and retail media.
Posterscope India plans to expand operations across India from the present employee strength of 120 people in 16 locations to 375 people across 20 full service locations (strategy, planning, buying, operations, etc) in 2005.
The newly formed company will also launch its proprietary tools and practices to meet the advertisers needs. Orbit - proprietary tool for 360 degree service delivery; Prism - industry leading tools for improving effectiveness and efficiency of OOH campaigns; Horizons - Dedicated research for better accountability; and Hyperspace - to explore and create new OOH channels and to create new media options. This also includes setting up of the first ever state-of-the-art creative studio by an OOH player in India.
The Indian OOH market is currently growing at 15-18 per cent (compared to 9-10 per cent growth in overall media market). The OOH spend as a part of the overall media spend of major buyers has grown to 40 per cent compared to 10 per cent five years back.
One of the key reasons spurring the growth of OOH media is the growth of innovative/new media. Innovative/new media share is now 20 per cent of OOH and is growing at 100 per cent annually.
Another significant development is the shift in the market towards organised sector, whereby currently about 55 per cent of the market is now with the organized sector compared to 20 per cent five years back. In the next five years,, it is expected that 95 per cent will shift to the organized sector.
The major customer segments that have spurred the growth are telecom (25-30 per cent share), feature films (20 per cent share), finance - banking, insurance, mutual funds, etc (7-8 per cent share), television channels (8-10 per cent share) and consumer durables - consumer electronics & white goods (8 per cent share).
What's also interesting is the increased shift to non-metros. Currently almost 90 per cent of spending goes to metros. In the next five years, non-metro share of outdoor spending is expected to go up to 40 per cent.
© 2005 agencyfaqs!