Digital OOH
Hi all,
I am still surviving..These have been the words most spoken in 2009, it looks. Still, less in India.
Probably because, this country is partly driven not by the rules that govern the financial markets. There are parallel markets and parallel income streams with the people to survive more than what would look like a miracle to a developed country. Also, the high tolerance level, adaptability, habit to work on bear minimum and survival instinct help drive us Indians all of out troubled times.
As far as Digital OOH media is concerned, I consider, 2009 as the deciding year. At least, after 3 years of its passage of evolution, the industry has decided that this media has failed. The major stake holder of the industry having more than 5500 screens in 2007-08 have been reduced to around 3800 screens and the average rentals for premise owners to install the screens have decreased by more than 50%.
Earlier in this industry in 2007, land grabbing (acquisition of space in the premises) was the winning factor. Now, solution itself is in question ! And believe me, almost US $ 12 Million have been spent by various networks during this 3 years to understand this! The industry size still ramains to be $ 6 Million with operational beakeven on the around the corner (mainly due to recessionary times).
All in all, the recession has been a golden time for most of the people in the industry since, they understood the need to re-work on the biz model, restructure their rentals, reduce their staff, focus on solution and not on land grabbing and lastly, understood the importance of running in to the profits. Had the recession not hit, the problems would have been much larger when the real balloon would have flattened!
For me, I consider this to be a golden year as well in the sense that I learned which existing medium can this DOOH really replace initially.
I consider my network, i-glOOH to be based on 3 factors such as Targeted, Measurable, Interactive and reaching to critical mass per city of operations.
On the whole, due to the non-acceptance of the medium category in the industry, especially, the market leader, I strongly feel that it has become mandatory to change its solution in the market in order to turn things around. Else, the road will be blocked by a simple question of the brand manager for the next 6-9 months: Oh, please, are you one more screen media?
I am working on 4 things at this moment:
1. Industry consolidation
2. Expanding my network in Non-POS locations
3. Planning for a new POS network.
4. Participation of an existing Media House in our DOOH Channel
Next month, I hope to write about why I need two networks (POS & Non-POS) to succeed based on the Life Pattern Marketing concept.
I think, I have a hard 12 months ahead of me since I have too many agendas already on the table with lesser resources, lower confidence level in the market (investors and customers) and need to wait till the market leader reaches the acceptance level. (I have my own doubt that they will ever be able to do so, unless they change their entire network to be more effective)
These are of course my personal opinions and not a challenge to anyone. In fact, their acceptance would actually help the whole industry, leave aside us !!
Dhananjay
I am still surviving..These have been the words most spoken in 2009, it looks. Still, less in India.
Probably because, this country is partly driven not by the rules that govern the financial markets. There are parallel markets and parallel income streams with the people to survive more than what would look like a miracle to a developed country. Also, the high tolerance level, adaptability, habit to work on bear minimum and survival instinct help drive us Indians all of out troubled times.
As far as Digital OOH media is concerned, I consider, 2009 as the deciding year. At least, after 3 years of its passage of evolution, the industry has decided that this media has failed. The major stake holder of the industry having more than 5500 screens in 2007-08 have been reduced to around 3800 screens and the average rentals for premise owners to install the screens have decreased by more than 50%.
Earlier in this industry in 2007, land grabbing (acquisition of space in the premises) was the winning factor. Now, solution itself is in question ! And believe me, almost US $ 12 Million have been spent by various networks during this 3 years to understand this! The industry size still ramains to be $ 6 Million with operational beakeven on the around the corner (mainly due to recessionary times).
All in all, the recession has been a golden time for most of the people in the industry since, they understood the need to re-work on the biz model, restructure their rentals, reduce their staff, focus on solution and not on land grabbing and lastly, understood the importance of running in to the profits. Had the recession not hit, the problems would have been much larger when the real balloon would have flattened!
For me, I consider this to be a golden year as well in the sense that I learned which existing medium can this DOOH really replace initially.
I consider my network, i-glOOH to be based on 3 factors such as Targeted, Measurable, Interactive and reaching to critical mass per city of operations.
On the whole, due to the non-acceptance of the medium category in the industry, especially, the market leader, I strongly feel that it has become mandatory to change its solution in the market in order to turn things around. Else, the road will be blocked by a simple question of the brand manager for the next 6-9 months: Oh, please, are you one more screen media?
I am working on 4 things at this moment:
1. Industry consolidation
2. Expanding my network in Non-POS locations
3. Planning for a new POS network.
4. Participation of an existing Media House in our DOOH Channel
Next month, I hope to write about why I need two networks (POS & Non-POS) to succeed based on the Life Pattern Marketing concept.
I think, I have a hard 12 months ahead of me since I have too many agendas already on the table with lesser resources, lower confidence level in the market (investors and customers) and need to wait till the market leader reaches the acceptance level. (I have my own doubt that they will ever be able to do so, unless they change their entire network to be more effective)
These are of course my personal opinions and not a challenge to anyone. In fact, their acceptance would actually help the whole industry, leave aside us !!
Dhananjay
|
|
