Out of over 5,000 billboards, pole signs, pylons and other outdoor advertising media in Karachi, 67% have been temporarily or permanently dismantled following a Supreme Court deadline that lapsed on 30th June. The new data has been revealed in a research conducted by Karachi based outdoor advertising intelligence company 24Grey.
In Karachi alone, outdoor advertising is an approximately US$ 91.3 million annual industry, generating an estimated US$ 14.9 million as direct local taxes and US$ 20 million in indirect taxes for the government. Based on current inventory levels and pricing, the new market value stands at US$ 37.5 million, a drop of almost 60% which does not account for loss of revenue due to decreased buyer confidence.
The Supreme Court ruling applied to outdoor advertising inventory on public lands and property and excludes those installed on private property or in housing societies such as Defense Housing Authority. Bulk of the inventory removed has not been permanently dismantled but is temporarily decommissioned suggesting that the outdoor advertising industry is optimistic that they will be able to salvage their property in the coming weeks and months.
“It’s understandable why the OOH industry is reluctant to completely remove this inventory, they invested billions in installing it by getting all legal permits at the time. The SC ruling changes the playing field but as an industry, outdoor advertising will rebound by finding a new equilibrium with better quality and higher priced units” said Hameed Kashan, Team Lead at 24Grey.
“Based on the quality of intact inventory and the going rates in these locations, we estimate that Top 20 locations in Karachi for outdoor advertising will see a price premium of over 88% in per square foot rate while the remaining inventory in other locations will demand a 46% to 59% increase in price quotes” said Najiyeh Akbar, Co-Founder at 24Grey.
This new data is available on 24Grey’s online platform Outnet which allows buyers to see currently installed inventory and allows them to evaluate and buy it. Outnet leverages its groundbreaking inventory census, traffic studies and cutting edge algorithms to inform advertisers on which locations and billboards provide the best price and reach efficiency.
About 24Grey and Outnet
24Grey is a Karachi based media buying and research agency exclusively for outdoor advertising. 24Grey owns and operates Outnet which is a revolutionary cloud based planning and buying platform focused on bringing transparency and accountability to outdoor advertising.