Anchor: 5 reasons OOH must shift focus to Tier 2 & 3 cities

30 Jan,2012

By Vikas Nowal

 

#1 There is considerably less OOH media clutter in Tier II and Tier III markets, which means that messages do not get lost in the proliferation of communication targeting the target consumer.

 

Media is more noticeable in these markets, so any innovations done are highlighted, and receive local media coverage as well as become talking points among the TG.

 

#2 The relative cost of media is less, therefore, spending more rational amounts of money can help cover the city, rather than spread yourself thin due to high per unit outlays. It is possible to capitalize on the “build” and perception “spillover” quality of OOH, by retaining sites for a longer duration, since the costs are rational.

 

The limitations of too-short campaign periods, which have become almost a norm in metros, can be rectified and the campaign has the ability to register and be internalized by the TG.

 

#3 Business potential across categories is rising in these markets, therefore an investment in media in these cities results in better ROI for the client. Most brands have seen increased purchasing power in smaller markets, and these audiences can be tapped effectively using OOH, whereby the returns will typically be higher than in metros.

 

#4 Media absorption power in these markets is more limited, therefore the possibility of optimally covering the entire city costs less than a Mumbai or a Delhi. For eg: spending Rs100 in Mumbai / Delhi may yield a less than optimum coverage whereas even a lesser spend in a smaller market with a comparable geographical spread may result in overkill.

 

#5 Malls and multiplexes are gaining traction in smaller markets as destinations, and media available at these locations provides a controlled OOH visibility option closer to POS, thereby driving purchase decisions. Activation undertaken at these locations also helps in multiplying the effect of static OOH done across the city.

 

Vikas Nowal is Vice President, Mudra Max OOH.

 

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