FMCG is knight in shining armour for outdoor media

The fast-moving consumer goods (FMCG) sector is coming to the rescue of outdoor media that witnessed a near total collapse with the decline of the real estate market in the UAE. "More than 90 per cent of outdoor locations were occupied by real estate companies and agencies wouldn't approach any other industry to cover these humongous canvasses whose cost is way out of the reach of any other industry," said one media professional working for a leading media buying unit, on condition of anonymity. He claimed that "the advertising world was dictated by the real estate industry and its availability and willingness to pump in millions of dirhams may have been good for the time being, but left a big dent and lead to a sudden halt in the growth of the industry". Crawling back to its feet, outdoors are once again shining with new artwork from FMCGs such as Lacnor juices, Kraft cheese and drinking water suppliers such as Oasis and Masafi. Both the telecommunication operators in the country, du and etisalat, have also increased their presence on the outdoor media in the recent past. Cosmetics, which had been predominantly embracing the pages of glossies, have also moved outdoors. Lancome has booked a circuit on Sheikh Zayed Road and is seemingly looking at the outdoor options in future also. More than 70 per cent of mupies from the World Trade Centre interchange to the end of Dubai just before Ghantoot are flashing messages of FMCG products. Most of them are new creatives, conveying a new shift in the advertising strategy of clients. Lacnor, which has just been taken over by Lowe, has increased its outdoor spend considerably and "is cashing on the easy availability of outdoors and reasonable prices". There is dual advantage for FMCG and other aspiring advertisers; one, that real estate is not available to occupy these sites, and secondly, in the absence of the mega builders, the price of outdoors media has dropped by more than 40 per cent," said Ranjit Kumar, CEO or Turning Point Advertising. "While the going was good, we all enjoyed a share of the fastest growing market in the region," said Tony Husseini, Managing Director of Tamra C2 advertising firm. "But as times are getting tough, we must accept them as an opportunity for correction and take bold steps to bring down the prices to realistic figures." Pointing to the high price of outdoors and other media platforms, Husseini is strongly in the favour of intervention by a third party to bring about a realistic change in the industry, especially in the pricing. "The IAA, or even the authorities, must intervene and give some guidance to the industry," said Husseini. "I am absolutely for a free economy, but to be loosely contained by certain guidelines is essential for the controlled growth of the industry and survival of all – especially the small- and medium-scale agencies. After all this has been the essence of doing business in Dubai." Keep up with the latest business news from the region with the Emirates Business 24|7 daily newsletter. To subscribe to the newsletter, please click here .