You see colorful, big, bright, and sometimes visually polluting hoardings, legal as well as illegal, crowding out road side air space almost everywhere in Bengaluru. The cacophony of imagery and colors tells you that there is decent demand for outdoor advertising. And yet, after some attempt earlier with Volvo routes, we find BMTC not making use of the outside surfaces of its buses to meet this demand and make some money.
Why? Wonder what the reason is. It seems to be such a low hanging fruit to most of us, there has to be a reason for BMTC here. RTO won't register vehicles with 'material that may distract other drivers'? There was a reason like that for withdrawing ads from some Volvo routes. There must be a way to work over this hurdle if it really exists. In fact, over last month or so, it seems that some buses are already carrying ads on their backs.
A remember an advertising company pitching its mobile display vans 2-3 years ago, and the rate quoted was Rs 50000 / month. This was for displaying advertising on both sides of a mobile van, much like a BMTC bus could easily do. Rates were marginally higher if you wanted the ad hoardings illuminated.
Let us assume that BMTC would charge much less, say half of the 50K, or even lesser - 20K per month. BMTC holds ~ 6600 vehicles today (refer BMTC website
). Even if half of these carry ads on their surfaces, we are talking of decent amounts. Here is how:
- 20K per bus per month
- for 3000 buses, that is 20K x 3K = 600 Lakhs / month
- for full year, we are talking 600 x 12 = Rs 7200 lakhs / year.
Take a look at BMTC's 'other revenues' (item #3 under financial performance here
). Item 3.b (Other commercial revenues) should be the item covering some ad revenues. Amount for 2012-2013 was 5697 lakhs. Seems like this number can be doubled. (7200 lakhs added to 5697 lakhs!).
Now, we considered only half of the buses, and assumed pretty low rates. If you assume 6000 buses, and double the rate to 40K, you are looking at 40K x 6000 = 2400 Lakhs / month. For the full year, that would become 28800 Lakhs.
28800 Lakhs, hmm. That is almost 19% of BMTC's total traffic revenue for 2012-2013 - 151600 Lakhs. Significant, right?
SB aka Pranav