MUMBAI: The out-of-home industry is perceived as a commodity and not a strategy tool by advertisers and this is mainly because the industry is highly unorganized in the rate structure offered by agencies, high cost of innovation, etc.
Pradeep Shrivastava, chief marketing officer, Idea Cellular, said, “ The Indian OOH industry is highly unorganised in nature, further, there is no transparency in rates and every agency claims to have the best rate for the advertiser and the heavy cost of innovation has resulted in OOH being perceived as a commodity and not as a strategic tool for advertisers.”
Shrivastava said, “Because of these reasons, OOH advertising is at the third spot after television and print when it comes to designing an advertising and marketing spend.”
Besides these hurdles, OOH is bogged down by the problem of measuring the efficacy of the medium apart from the inherent limitations posed by the medium to smaller towns in the country and the rural areas.
Shrivastava explained, “If as an advertiser I launch an outdoor activation in rural parts of the country, there is no way I can find out whether the activation had any impact on the audience. Also during one of the Idea activations, I found that a van which was supposed to visit the villages was parked in a corner near an eating joint and the driver was sleeping. These kinds of limitations draw the advertiser away from OOH. OOH advertising in India succeeds only if its focus is on a limited number of cities, where it can be managed well.”
Shrivastava also stressed on the fast need of implementation of measurability in OOH across the country to make the industry organised, so that as an advertiser, one can prepare a infallible media plan.