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OAC 2009: "OOH is not fully exploited in mini metros and rural markets"

According to Pradeep Shrivastava of Idea Cellular, while the medium offers customisation, there are a couple of drawbacks as well

The fifth installment of the Outdoor Advertising Convention (OAC) started on June 18, 2009 at Taj Lands End in Mumbai.

Pradeep Shrivastava, chief marketing officer, Idea Cellular, made a presentation about ‘Reallocating spends by media during a slowdown and what outdoor can do to get its fair share.’ Shrivastava’s talk was centred on what telecom brands can do.

OAC 2009: "OOH is not fully exploited in mini metros and rural markets"
Shrivastava started his session by saying that the places where brands decide to advertise become very important, as there are eight to nine main players in each segment who give out similar messages. The task here would be how consumers can differentiate between those messages. Citing an example, he stated that in 2008, the major telecom companies spent around Rs 1,000 crore on television alone.

Other issues that need to be looked into are return on investments and the measurability of ads. For example, there is customised pricing on television, depending on what the ad or sponsorship is like. In that sense, there is no fixed method to measure how many people noticed a brand or an ad.

Shrivastava says that Idea used media such as out of home in Mumbai during its launch. However, he feels that OOH is still not fully exploited in mini metros and in rural areas. A serious challenge faced by the OOH industry is that it is still largely unorganised and that the ROI is disproportionate to the investment.

He shared his own experience, saying that when he was visiting a small town, the person who was holding the banner for a certain brand did not have anyone monitoring him. So, while that person took his lunch break, people passing that spot would not be able to see the branding.

In spite of such drawbacks, Shrivastava admitted that an advertiser has no choice but to advertise in the rural market. This is especially true for telecom brands, as one out of two new subscribers is from a non metro market.

Shrivastava then shared some unconventional OOH branding by Idea, such as cab roof branding, bus wrap, branding on buildings and kiosk trees. “Sometimes, you have to treat innovations as a research and development activity, and not always look at recovering your money,” says Shrivastava.

He also pointed out some areas of concern for the OOH industry. It is an unorganised industry for an advertiser and it is not as organised as the television industry. There is a need for transparency on rates and industry-wide benchmarking. The industry needs customisation and innovation, as it is perceived as a commodity and not as a strategic tool. The reach to rural markets and smaller towns is limited, which should be increased.

He ended his session by saying that the OOH industry is considered to be the unorganised end of an advertiser’s media spends and is not seen as the powerhouse that it is.

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