Meltdown blanks city billboards

HYDERABAD: The huge billboards and illuminated bus shelters in the city may now draw a blank, literally. The recession has rung in a dark phase for outdoor advertising, which is witnessing a 50 per cent dip in demand forcing publicists to slash hoarding rates.
The quarter from October to January, which is otherwise a golden period for advertisers has turned dry."The months of October and November are the most profitable months for us since there are many festivals during this period. But this year while some have pulled back their running campaigns, others have postponed their new launches.
Telecom industries that were planning launches in November have postponed their plans. Also, earlier companies selling white goods would advertise heavily during this time of the year, this time they have cut down on their advertisements by 50 per cent,��� laments Surendra Nath, CEO of Prakash Arts.
"Business has come down particularly in areas such as Kukatpally, Gachibowli and Hi-tech city. Our major clients include real estate, software companies, telecom, insurance and banks.
While real estate is the worst hit sector, demand has declined for others sectors too,��� says B Naveen Kumar from Overseas Outsource Advertising. Advertisers say that until fairly recently they were flooded with clients from real estate, telecom, consumer stores and banks but with each of them reworking their advertising budgets, they are being forced to review the price at which they lease out hoardings.
"Not only is there a 50 per cent dip in the number of clients but also a drop in the price at which they want bill boards. This means huge losses for us,��� says Vijay Kumar, senior manager of Janahitha advertisers that has their bill boards in areas such as Hi-tech, Necklace Road, Madhapur, Kondapur and Gachibowli.
Advertisers say that they are now forced to reduce the price of hoardings offering them at Rs 30,000 per month as against the Rs 60,000 they charged for every hoarding until a couple of months ago.
Advertisers are also worried about the shrinking contract period. "Our customers have reduced the period of contract. Earlier the contract period would be around one year, now they have reduced it to two to three months. Also, while earlier they would advertise for ten bill boards, now they are advertising for only five,��� says assistant manager from Uniads.
Jagdish Rai from Impression Outdoor Advertising says although major clients such as big electronic brands are a cushion for bad times but he too is uncertain and wary of the renewal of the contracts after the termination.
Outdoor advertisers say that the annual growth of 25 per cent in their revenues is now a thing of the past. "This year mere sustenance has become our target," says Surender Nath.