Media selling cos cheer cut in TV ad time

Media selling cos cheer cut in TV ad time

The restriction on commercial advertisements on TV general entertainment channels from October 1 this year, curtailing such advertisements to 12 minutes per hour, could come as a boon for out-of-home (OOH) advertisements.

Pune-based OOH advertising firm, Dreamers Media and Advertising (Dreamers) hopes to cash in on it, even while being cautious about the shift.

In conversation with Deccan Herald, the company's director-sales & marketing, Shivani Lorai said, “We are not saying that definitely, but confident that advertisers would look at OOH as an alternate medium. Those who pull out of TV or reduce their budget there would look for other options and we fit into that.” Dreamers' September 2013 launch will more or less coincide with the 12-minute limit coming into effect.

Lorai was talking on Wednesday here in the context of Dreamers launching a scheme wherein the company is offering car owners to pay their first 36 months' loan instalments in return for using their cars as mobile billboards subject to certain conditions.

She said, “The conditions are that the maximum value of the car can’t exceed Rs 6 lakh, the car should travel at least 1,500 km every month and the owners should not tamper with the vehicle tracking system installed by us. We will use about 40 to 60 per cent of the car space, except for the windows, for advertisement.”  Buyers will have to make 25 per cent down payment and pay remaining instalments over 24 months.

The company is aiming revenues of Rs 50 crore this fiscal and scale it up to Rs 150 crore by next fiscal and target 1 lakh vehicles in calendar year 2014.

However, the COO of advertisement agency Draftfcb Ulka, Nitin Karkare, differed on the expected shift from TV to OOH. “The 12 minute cap on TV advertising will in no way impact the decision to shift budgets to OOH. OOH is localized and topical whereas TV reach is national/regional depending on the channels selected. The two cannot and should not be compared .”
Ad film maker Prahlad Kakkar does see some churn in the business. He said, “The 12-minute cap is sure to increase TV advertisement rates, it’s inevitable. At the same time, there will be lot of flight of business from TV, mainly to social media and radio, and OOH also.”

A Ficci-KPMG report released this March estimated the OOH market size for calendar year 2013 at Rs 1,930 crore and Rs 2,110 crore for 2014.

TV advertisement market is estimated at Rs 15,000 crore in 2013 and expected to grow to Rs 16,500 crore by 2014, Karkare said.

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