Outdoor agencies fear revenue drop if BMC implements draft OOH policy

New Delhi: In a dramatic overhaul of its urban landscape, Mumbai is set to dim the dazzling lights of its digital billboards. The BMC recently unveiled stringent new guidelines for Out-of-Home (OOH) advertising, and the most striking aspect is the complete ban on video ads on roads and highways.

While the BMC's intentions are clear to enhance city aesthetics and public safety—the implications for the advertising industry are profound. The ban on video ads and the overall reduction in billboard visibility could significantly impact advertising revenues. This, in turn, might force advertisers to explore alternative mediums or become more creative in their static ad campaigns.

“The proposed restrictions can be challenging, particularly for a city like Mumbai that operates around the clock—impacting return on investment (ROI) for media owners,” said Rohit Chopra, COO, Times OOH, to Bestmediainfo.com.

He further emphasised the latest draft trying to “ensure the safety of city residents without compromising on the OOH business aspect by regularising existing guidelines. However, there have been several studies conducted internationally that have clearly stated that there is no correlation between DOOH and casualties.”

“Enhanced regulations may streamline campaign planning by providing clearer metrics and operational frameworks. However, stricter rules could also raise compliance costs and complexity, potentially affecting smaller players,” said Harish Nayak, President, APAC, Posterscope. 

The policy is slated for implementation by the end of August as a direct response to growing concerns over visual pollution, road safety, and revenue generation. The restrictions extend beyond video content. All DOOH boards must now switch off by 11 pm, a measure designed to curb light pollution and create a more tranquil nighttime environment. With Mumbai aiming to become a more sustainable city, such an indirect benefit might be a silver lining for environmentalists. Additionally, the height of billboards has been capped at 100 feet, and their placement is restricted in areas around historical monuments and on footpaths.

However, the challenge lies in balancing the city's aesthetic and safety needs with the economic interests of the advertising industry. 

As per Nayak, there can be two major challenges: “One is the timing of 11 pm” as a hard stop for DOOH operation, against the notion of how Mumbai stays lively round the clock. “The second and bigger challenge for DOOH is multiple levels of NOC required, which can be taxing.” 

With less ad space available, competition for prime locations is likely to intensify, potentially driving up costs for advertisers. This could lead to a consolidation of the outdoor advertising industry, with larger players acquiring smaller ones to gain a competitive edge.

The focus on static advertisements might encourage a return to traditional forms of outdoor advertising, such as billboards and posters. This could breathe new life into these older formats, provided they adhere to the BMC's guidelines. Ultimately, the success of the new policy will depend on its enforcement. The BMC will need to establish a robust monitoring system to ensure compliance and deter violations. 

Chopra opined a further emphasis on the application of the norms should be ensured “through mandatory, stringent quality checks and timely safety audits.” “We also suggest reconsidering the three-month permit renewal process, as it could become burdensome for both media owners and authorities. A streamlined renewal process and a single gateway for permissions would foster greater efficiency and ease for all parties involved.”

“We recommend that there should be a single window for OOH concessionaires to seek permissions instead of approaching different authorities as it becomes a cumbersome task and time-consuming process,” he added.

Mumbai's crackdown on OOH advertising is part of a broader global movement to regulate outdoor advertising. Cities around the world, from New York to London and Singapore, have implemented similar measures to address concerns about visual pollution, traffic safety, and the overall quality of urban life. While the specific regulations vary, the underlying goal is to create more sustainable and people-centric cities.

Reflecting on the optimism of the endeavour, Nayak said, “New policy guidelines will enhance the consumer experience by promoting more visually appealing spaces due to standardisation of sizes and less cluttered outdoor spaces. Advertisers will be encouraged to create higher-quality, targeted content that resonates with specific audiences as it promotes DOOH elements. Improved regulations will also lead to safer, more sustainable advertising practices, such as reduced light pollution and eco-friendly materials, making outdoor ads not just more relevant but also more environmentally conscious and consumer-friendly.”

For Chopra, the positive side of the draft also includes “touchpoints to install DOOH media, including terraces.” “Ideally, digital billboards are meant for effective storytelling, engagement and focused targeting, and such locations provide the required dwell time for the digital billboard to target the desired audiences. It will give an impetus push to the DOOH in the city, redefining the landscape of the OOH industry.”

Sustainability is an important element of how OOH can usher through the traditional landscape of advertising into both modernity and eco-friendliness, but it is not a new concept. During his visit to India, Tom Goddord, CEO, WOOH, spoke about world-famous examples of sustainable OOH advertising that not only sets an example of eco-friendliness but also innovation.

He also highlighted: “We, as an industry, must take responsibility for addressing issues like illegal structures, clutter, and poor maintenance, which can tarnish the OOH medium’s reputation.” He advocated for a collaborative model where media owners partner with cities to share revenue and provide additional civic amenities, a trend gaining traction globally.

“While concerns about ad overload persist across media platforms, Goddord asserted that OOH’s unique characteristics, such as brevity and visual impact, make it resilient to such pressures,” he reflected when asked about complaints against DOOH distracting travelers.

As Mumbai leads the way with these stringent regulations, its ripple effect is yet to be seen in the rest of the regions of the country. Mumbai's experience offers valuable insights for other cities grappling with similar challenges. The city's bold move to regulate DOOH advertising could serve as a blueprint for urban planners and policymakers worldwide as they strive to balance commercial interests with public welfare.