Hoardings business in Mumbai forecast likely to go wrong post noteban

A drive from the tip of the island city to the end of the suburbs reveals the gradual trend in the decline of out-of-home advertising in recent months. With promotional and advertising spends shrinking, several billboards are blank. “This winter has been a lean season for hoarding advertisements…business has been clearly affected by the demonetisation because of the lack of clarity. Billboards are usually the first of the chain of advertisements that are given the boot,” says Manish Kotak, director, Brand Experts Advertising.

The second last and last quarters of the year are considered the most profitable time for advertisers on the 3,500 hoardings dotting Mumbai. But brands have curtailed their spends on billboards due to cash crunch and the “confusion”.

“During this time, in the lead up to the budget, several banks advertise mutual fund and tax incentive schemes. It is hard to miss these massive boards and they have great attractions in terms of visibility. From December till February is when banks get active in their advertising,” says a hoarding owner in South Mumbai.

The situation this year has been different.

“A brand that was loyal to 10 hoarding sites has now cut down to only two. Big outdoor campaigns are not happening and are not expected to happen soon. In such a scenario, all eyes are on you (brand) and on what you spend. No one wants to be under inquiry for spending a lot. Hence, there is only cautious and limited spending (from brands). Overall, with ambiguity over the government’s next step, we don’t know which sector will be affected,” observes a senior marketing official with a renowned hoarding agency.

Hoarding business has been affected by automobiles and financial services companies cutting ad budgets. But luxury real estate companies, e-commerce and mobile handsets have dominated hoardings across the city.

According to a marketing official, ads of all budgets are being tried to be accommodated.

“There is no longer a standard price, these are all customised rates. A 20/20 feet canvas on Pedder Road costs around Rs 4-7 lakh per month. Customers are asking for discounted offers, rotational or barter offers and even per day vacancy offers but this would not result in any growth in their brands,” says the official, adding that businesses in January are also expected to be as grim as that in December. Kotak says loyal brands that have long term deals with a hoarding owner are cancelling deals at the last minute.