Pricing in the Ooh Industry

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Table of Content 1. OOH Industry Overview 3 2. Laqshya Media Pvt. Ltd. 5 3. Pricing Strategy 6 4. Contrasting Media 7 5. Bundling 8 6. Chennai Expansion Case 9 7. Advertisers’ Issues 9 8. Suggestions 10 8.1 Increasing billboard turnover 11 9. Bibliography 12 10. Annexure 13 1. OOH Industry Overview OOH Media stands for Out of Home Media. Types of OOH media are billboards, street media which includes buses autos and taxis, street furniture and ambient media which includes malls and multiplexes. The OOH industry in India is currently valued at around 1700 Crores. The major players in the Indian OOH industry are Times OOH, Percept Outdoor, Laqshya Media, Selvel and Serve&Volley. 2005-2008 was considered to be the golden period for the industry with companies making sizeable investments in outdoor media. 2011 was a difficult year for the Indian economy, with slowing consumer demand and rising interest rates impacting the growth story. As a result growth projections made in
the beginning of 2011 had to be scaled down due to cuts in advertisement budgets by various industries. In 2011 spending on OOH Media amounted to approximately 
5 percent of total advertisement spends. The OOH industry was hit much harder than other sectors of the Advertising industry. The industry registered a growth of only 7.6 percent as compared to the previous year, which was the lowest of all advertising media. The Industry saw a reduction in spends by telecom players, who were the leading spenders on this medium in the last five years. Realty Industry, Consumer durables and Banking & Financial Service Institutions, also reduced spending. This was however compensated in part by increased spend by auto companies, E-commerce companies and entertainment companies. Though OOH continues to be used by various brands, there are still 4-5 industries, which dominate its

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