NEW DELHI, JUNE 9: For the first time since Supreme Court banned outdoor advertising in Delhi, the growth in the national capital's Out of Home (OOH) advertising market is outstripping that of Mumbai, thanks to thanks to a significant impetus from Delhi Metro.
Delhi's Rs 260-crore OOH market is growing at 18-22% per annum as against Mumbai's Rs 450-500 crore OOH market, which is growing at 10-12%. India's entire OOH advertising is in the region of Rs 1,100 crore.
The Delhi market is being driven by the Delhi Metro. Currently, there are three active tracks of Delhi Metro that attract Rs 15-20 crore of advertising. "All together, advertisers will spend Rs 25-30 crore on Delhi Metro routes by the end of 2006. This is very significant as no hoardings were allowed within Delhi," industry sources told FE .
However, before the year closes, Delhi Metro is expected to attract a host of new advertisers, including airlines, banks, retailers, TV channels and FM radio companies. As new advertisers vie for the same spots, they are expected to pay a premium for key outdoor spots.
At present, the National Capital Region of Delhi contributes 70-80% of the outdoor advertising market, while Delhi accounts for 10-15%. With the metro platform, Delhi's outdoor advertising space increased thereby raising Delhi's share, the sources added.
The Delhi OOH market is expected to be growing at 18-22% with metro railways and bus-shelter advertising driving the boom. While the outdoor advertising spots for the two active routes of Delhi Metro are being booked through Times OOH Media, for the stretch between Dwarka and Barakhamba road, Bangalore-based outdoor agency `Serve & Volley' has bagged a five-year contract worth Rs 25 crore from Delhi Metro. The company has also got the outdoor contract from Kolkata Metro.
"While new airlines and banks are booking spaces in and along the Connaught Place stations, shop owners and TV channels have booked the spots alongside Karol Bagh-Janakpuri route," Parsha Chatterjee, general manager, business development of Serve & Volley told FE .
Typically, the backlit hoardings on the Delhi Metro railway station and the key points are sold for a monthly rental fee of Rs 50,000-85,000 for a three to six month period. "Regional advertising will boost Delhi's OOH advertising with even local shops putting money on outdoor spots," an advertising agency source said.
