‘Stake holders need to look beyond short term gains’
Indrajit Sen, Executive Director, IOAA
OOH Clutter – The solution
There are two ways to solve clutter. One is through enlightened regulations - which appears to be an oxymoron as of now. So that leaves the other way - which is through self - regulation through media associations in cities and states as they exist today. At the end of the day, media owners and companies need to realize what is beneficial to them and to the long term growth of the industry.
Regulation of the industry
The industry will get regulated only when media, agencies and advertisers realize the need for it. All three need to look beyond immediate short term marginal gains and follow basic disciplines. Till then the business will only see residual budget allocations and lower shares of total advertising spends. A big step in this direction is already under way with the Advertising Agencies Association of India ( AAAI ) and the Indian Outdoor Advertising Association ( IOAA ) agreeing to work on a MOU to create a body like the INS and the IBF. This should be implemented by this year itself and it will see a number of issues being regulated, paving the way for healthy growth.
This depends on the way prices of digital formats pan out. Currently, expenditure on installing a digital format is too high in comparison with short term licensing of outdoor sites. So, the second very big factor in digital for arts taking off in a big way is the issue of there being long term concessions for sites. For example, locations like metros and railways, other congregation points like malls, shopping complexes need to work on long term licenses in excess of 10 years for the concessionaire to invest in expensive digital media. Currently, there are only the new privatised airports that have long term concessions and you see digital formats thriving there.
Credit issues – The solution
The AAAI and IOAA agreement is basically to resolve business transactions and spell out strictly enforceable credit terms. So this issue is likely to be resolved soon.
Measuring the medium
There are a number of efforts already under way and state-of-art technologies for monitoring are available. However, these efforts need to be rolled out city by city and site by site. That obviously takes both time and money. When it comes to paying for these information, users tend to get bogged down with current finances instead of treating this as investments for near future gains. It is also a matter of accepting the transparency that measurements will bring and change in the way this industry is managed at present. Consequences of not doing so are already visible - slower or static revenues and adoption of alternate options.