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MUMBAI: The battle for outdoor advertising channels like bus-shelters,
kiosks and hoardings is intensifying with World Cup on the anvil.
Another major revenue driver in this business is expected to be
telecom, especially with "Big Daddy" Reliance Infocomm
set to make a huge splash in 2003.
ESPN Star Sports has an existing deal with outdoor advertising
marketers and its possible tie-up with DD-Nimbus should see the
combine use the outdoors extensively. The Sony channels SET and
MAX have already started using hoardings but have still not started
on the bus-shelter or kiosks channels. JWT's WPP Media has already
finalised deals for HLL and other brands, say industry sources.Consumer
durable companies such as Akai and LG Electronics will also be using
these channels as World Cup excitement builds up.
"The size of the advertising spend is estimated between Rs
1 billion to Rs 1.2 billion in Mumbai, which contributes 40 per
cent of the all-India outdoor spend. The estimated share of bus-shelters
(Rs 60 million) and kiosks (Rs 30 million) would be around 10 per
cent of the total outdoor spend in Mumbai," says Mid-Day Outdoor's
general manager Joseph Ramsey.
Mid-day Outdoor has bagged the mandate for hoardings and kiosks
on 14 MSRDC flyovers; and the BOT (build, operate, transfer) shelters
in the whole city for a period of three years.
"The top advertisers include cigarette companies and FMCGs.
TV channels are slowly realising the efficiency of the medium and
promising to increase their spends in 2003 - probably due to World
Cup cricket. Telecom companies like Airtel have been spending a
lot. The beautification options on the Marine Drive also seem to
a growing segment," adds Midday's Ramsey.
Till May 2002, Mid-day Outdoor was the monopoly player in the bus-shelters
and kiosks business. Currently, Mid-day Outdoor has the bus-shelter
rights for South Mumbai (Prabhadevi onwards); kiosks (South Mumbai
till Mahim flyover and Sion flyover); BOT donation shelters for
the whole city; and hoardings and kiosks for 14 MSRDC flyovers.
Mid-day Outdoor added another revenue stream by taking on the challenge
of creating the "donation" shelters properties, sourcing
clients and maintaining them for a period of three years.
Realising the potential of the segment, players such as The Times
of India group's Infotainment division also ventured into the bidding
process. Times Infotainment Media has the rights for the suburban
areas between Bandra and Dahisar. Times Infotainment senior manager
Gurdeep Gill adds, "The major spenders include FMCGs, cigarette
companies, banks and insurance companies. The telecom sector is
also spending heavily and the entry of Reliance Infocomm should
see some major action."
From February 2003, the mandate for kiosks will transfer to DS
Mittle & Sons who beat out other bidders such as Mid-Day and
The Times of India group. Currently, no advertising is permitted
on the kiosks on the western suburbs between Borivali and Mahim
causeway as these kiosks are owned by BSES.
Prithvi, the third player, has the rights for bus-shelters in the
remaining areas from Sion to Mulund flyover.
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