2024 LS polls: Political parties to spend between Rs 1000-1200 crore on outdoor advertising

Experts from the outdoor advertising domain estimate that political parties will spend around Rs 1000-1200 crore for the upcoming general elections to be held between April and May.

Haresh Nayak

Haresh Nayak, Founder and CEO, Connect Network Inc, said, “Our estimate indicates the spends across the country by all parties will be around Rs 1000 to 1200 crore.”

Outdoor advertising continues to remain an important medium for parties to engage with voters, despite the growth of digital advertising.

Rajesh Radhakrishnan

Rajesh Radhakrishnan, Co-Founder and Chief Marketing Officer, Vritti iMedia, said that political parties have set aside approximately 40% of election budgets for OOH, including DOOH.

He further said that as DOOH gains traction, particularly in small cities and villages, the investment in this medium is likely to increase significantly over the next few years.

“The traditional OOH methods like posters and banners remain prevalent, but the adoption of digital platforms, such as LED vans and DOOH screens, has seen a remarkable increase,” added Radhakrishnan.

We have already seen brands’ frenzy for Ram Mandir's consecration, where they paid 4-5X ad rates for a presence in Ayodhya.

Nayak told BestMediaInfo.com that given the rise in demand for OOH advertising by political parties, OOH advertising companies would be able to charge a premium of around 10 to 15% for general election advertising.

Having said that, Radhakrishnan emphasised that the ad rates for political ads during elections can vary depending on factors such as the location, duration, and format of the advertisement.

“Outdoor advertising companies may charge political parties a premium during election periods due to increased demand and limited availability of prime advertising spaces. The hike in rates can vary based on market dynamics and competition among advertisers. However, the precise rates and hikes would need to be determined based on specific negotiations with advertising agencies and media owners,” he said.

Outdoor agencies leave no stone unturned ahead of this once-in-five-year opportunity and treat general elections as an integral revenue source.

Amarjeet Hudda

Amarjeet Hudda, COO, Laqshya Media, shared that his agency is already in the advanced stages with political parties and DIPR (Department of Information and Public Relations) and expects an addition of nearly 10-15% in the company’s overall revenue.

Hudda also commented, “Political advertising on OOH platforms has witnessed a notable increase around general elections. This rise is comparable to previous general elections and recently held state elections, indicating a consistent trend of heightened OOH advertising during major political events.”

While political parties and OOH agencies have put their best foot forward ahead of the Lok Sabha elections, Nayak thinks that one of the biggest challenges that the industry will face is the increased clutter across the country, non-availability of strategic media/location, inflation in cost and operational challenges on the ground due to control and restrictions.

As per reports, in 2019-20, more than Rs 1,300 crore was spent on publicity and 57.6% of it or more than Rs 700 crore was spent by BJP alone. This was followed by INC (29.5%), NCP (3.6%) and AAP (1.7%).

New advertising trends during general elections 2024

Radhakrishnan believes that collaborations with technology companies and creative agencies could lead to the development of unique and engaging advertising experiences during the 18th Lok Sabha elections.

He also said that using DOOH, “Candidates and political parties may explore interactive and dynamic content, targeted messaging based on audience demographics, and real-time data analytics to optimise their campaigns.”

Nayak thinks that this election will see a lot of technological innovations right from drones, CGI, 3d Anamorphic, AR, VR, mobile integrations, geofencing, etc.”

“Although, some large format impact mediums which are temporary in nature which have been the traditional mode of impact will also have a large role,” he said.

As per Hudda, “Innovations such as digital billboards, interactive displays, and targeted messaging may be observed alongside more generic advertising tactics.”

He further said that it's essential to highlight the role of data analytics, targeting strategies, and ethical considerations in shaping advertising campaigns.

“Data-driven insights, transparency, and accountability are crucial factors in understanding and evaluating election advertising trends comprehensively,” added Hudda.

As India heads towards one-sided elections, how will it impact advertising?

Hudda said, “One-sided elections can influence the advertising strategies of political parties. In situations where one party has a significant advantage or is expected to win decisively, the dominant party may invest more in advertising compared to more competitive elections to keep pace. However, the impact of one-sided elections on advertising can vary based on regional dynamics and strategic considerations.”

Radhakrishnan said that it is important for all parties and politicians to promote themselves as the public is becoming more aware day by day. “Also, recall through ads is crucial. It is the candidate who makes the impact and not the party,” he said.

Info@BestMediaInfo.com