All About... India's billboard crackdown

Mumbai has become the latest in a string of Indian cities - after Bangalore, Chennai and Delhi - to scrutinise the outdoor sector. The authorities claim many of its ubiquitous hoardings and billboards are illegal and should be removed.

Recently introduced guidelines by the Municipal Corporation of Greater Mumbai (MCGM) aim to make the city’s notorious monster hoardings a thing of the past, with restrictions on size and height, and on the distance between roadside billboards.

No fixture within the city can now exceed dimensions of six metres by 12 metres, or stand higher than 22.8 metres from the ground. The minimum distance between any two hoardings at ground level has been set at 20 metres, while in the interests of safety, ads around traffic islands and signal junctions have been banned outright.

The question is what in practice these changes will mean for India’s outdoor industry and advertisers wishing to use it.

1 According to Pratap Bose, chief operating officer of Mudra, the move will result in the dismantling of around 15 per cent of Mumbai’s 3,000 commercial billboards.

While this will go some way to reducing the city’s often chaotic landscape, Bose says the process is likely to take time to implement and will not dramatically alter the current situation.

India’s billboard clampdown may extend further still. Bangalore’s new Government, the BJB, has voiced intention to restrict its own local outdoor advertising scene further by refusing to renew existing licences and permits upon expiry. However, so far nothing has been implemented, and no guidelines have been issued to define the difference between acceptable out-of-home messaging and visual pollution, leaving some industry observers sceptical as to the likelihood of any change.

2 Although some agency representatives have expressed concern at a drop in revenues following these changes, Indrajit Sen, chief executive of Stroeer India, points out that owners stand to gain from increased tax rates on the new, standardised displays.

Bose adds that significant opportunities exist for investment in street furniture, a medium promoted by the local municipality as the future of outdoor messaging for a modern, spruced-up Mumbai.

3 With high spending from financial, mobile and entertainment sectors, outdoor remains India’s fastest-growing advertising medium after online, with a growth rate of 20 per cent. “The impact on advertising agencies will be negligible,” says Bose, pointing out that existing new media vehicles such as LED and LCD signage, while more expensive, should adequately compensate for any loss, and may actually lead to increased investment from advertisers in outdoor media.

Outdoor currently accounts for US$17 million in Mumbai, approximately 10 per cent, of the city’s total adspend.

4 While a transition to electronic outoor media is not expected overnight, with conversion rates from static billboards currently hovering between seven and 10 per cent a year, a $250 million investment by media companies over the past 14 months supports the view that the market may be moving in that direction. Ishan Raina, director and chief executive of OOH India, notes that as digital signage specialists such as JCDecaux enter the market, the number of digital screens is increasing nationwide, with currently between 2,400 and 2,500 digital OOH sites in Mumbai and Delhi.

5 There is still plenty of scope for clutter in the outdoor sector, as the authorities can do little about rampant, and often illegal, political billboards.

Sen explains that although the majority of outdoor political messaging is put up illegally without payment of fees, enforcing counter measures is difficult and time-consuming. As political workers fail to take down billboards after the passing of an election or rally, removal becomes a burden for the city authorities. Despite the introduction of laws to eradicate unwanted political slogans from the cityscape, Sen sees mobilising public opinion against illegitimate political hoardings as the only way to effect change.

Bose agrees: “With so many party workers flouting all regulations, any move by the local authorities won’t necessarily correlate in reality. There are just too many loopholes to overcome.”

What it means for…

ADVERTISERS

- Advertisers should not expect an overnight end to clutter in India’s outdoor market. However, the rules may speed up development of new opportunities for brands.

- Outdoor furniture, such as bus shelters and electronic screens, will become an increasingly attractive option for advertisers looking to retain a legitimate outdoor presence in high-traffic urban areas.

- The development of digital screens will require advertisers to rethink the way outdoor fits into their marketing plan, as static images are replaced by video and interactive content.

AGENCIES

- Increased investment in alternative media from advertisers will mean that agencies are required to restructure their outdoor teams.

- Small-time players that have built their businesses on traditional hoardings will be forced to adapt or gradually disappear.

- Global outdoor giants used to handling large and sophisticated municipal contracts should benefit from the changes. For media agencies, that could make planning outdoor media an easier business.