PUNE: The city skyline, which has been mostly bare for the past few months, is showing signs of life with an increasing number of advertisement hoardings being put up.
According to outdoor advertisers, the market for outdoor advertising is back at 60% of previous year’s levels, with the real estate industry leading the advertising blitz in large swathes.
Advertising experts see outdoor advertising as a reflection of the economy’s vibrancy.
“Outdoor hoardings are the pulse of a marketing economy, and it’s hobbling back on track,” said Harish Bijoor, owner of Harish Bijoor Consults Inc.
Advertisers said there were over 2,000 billboards of all shapes and sizes in Pune and Pimpri Chinchwad, and bring in a revenue of over Rs100 crore per year. This revenue is then split between the agents, advertising companies, space owners and the civic bodies, which get a pre-fixed licensing fee.
PMC and PCMC rake in about Rs30 crore per annum from licensing sky signs (hoarding spaces).
“These are pre-agreed fees. The fee does not depend on the space being used or otherwise. So, PMC did not really lose any revenue due to hoarding spaces being empty during the initial months of this fiscal,” Sanjay Gawde, deputy commissioner in charge of PMC’s sky sign department said.
The fee is calculated on a per-square foot basis, but is not dependent on how well the industry is doing. The advertising agencies lease these billboards for a year or more, and then the fee is fixed based on how much square footage each agency owns.
Advertisements, particularly from the real estate sector, have once begun to tower over the roadsides, signalling a return of confidence in certain key sectors of the economy.
“Although we have extended a 20% discount on the advertising rates this year, the market is back at 60% of last year’s levels. But we are hopeful of it growing over the next few months,” said Sadashiv Suryavanshi of Shubhangi Advertising.
With more realtors launching new projects and looking to sell them in bulk through various offers, outdoor advertising remains the go-to place to drum up interest.