For a telling tale, just look above the line on prime locations in Mumbai such as Peddar Road, Marine Drive, Worli, and Bandra in Mumbai.
MUMBAI: The media war in the financial capital of the country may have negatively impacted print advertisement rates, but the ones paying the price for the decline is on the street, figuratively speaking.
For a telling tale, just look above the line on prime locations in Mumbai such as Peddar Road, Marine Drive, Worli, and Bandra in Mumbai.
What you see is a raft of vacant hoardings — a de facto requiem for the outdoor media, written in bold contact numbers.
“The glut of adspace due to the increase in number of publications and circulation, means newspapers today give lower per-contact cost for the advertisers compared with hoardings, which have witnessed irrational increase in pricing in recent times,” said Isaac Jacob, chief marketing officer, Tata Mutual Fund.
“The monthly charge for hoardings has gone as high as 15% up in certain locations of the city compared with a month back. And, on an average, it has witnessed a 10% rise in Mumbai, which is out of sync with any logic of location or vehicular traffic base,” added Jacob.
Also the high court order, hoardings from a heritage building in South Mumbai has been removed and the owners of hoardings sites from the unorganised sector has increased the monthly fee assuming the supply shortage.
“But, ironically it has made the clients move to the print media which is now available at reasonable rate,” reasons Jacob explaining the matrix behind the rise in monthly fee for hoardings.
Confirming the trend of move by clients from outdoor to print and other media, Nandini Dias, national media director, Lodestar, said, “Earlier, clients were using outdoor as the alternate media because the ad rate for print media was really prohibitive. For example, for the launch of Amul ice-cream, we had to go to outdoor media as print ad rate for the leading newspapers at that time was exorbitant.”
Dias says more newspapers have led to ad rates getting rationalised.
“But the hoarding industry, which is largely in the unorganised sector, has not understood the ballgame and is therefore staring at a lean season,” adds Dias.
Mumbai has got around 2,400 hoardings (barring railways premises) for which the monthly fee in prime locations like South Mumbai varies between three to eighteen lakhs. And the space being a perishable item it would amount a huge financial as well as opportunity loss for the industry.
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