HYDERABAD: For the Hyderabad Metro Rail to break even based on its mammoth construction cost of Rs 18,000 crore, it would take approximately five to six years, according to both L&T and HMRL officials. The Metro plans to generate most of its revenue through fares, shopping malls, renting out shop premises and leasing out advertising space.
However, a month after the inauguration of Metro Rail, a large number of the billboards remain empty. There are about 2,400 billboards placed across metro pillars along the Miyapur-Ameerpet-Nagole stretch, but so far, close to 1,900 of these boards remain empty. L&T has hired three advertising agencies on a one-year contract basis, tasking them to find prospective advertisers for the Hyderabad Metro.
The rates at which the advertising agencies are charging for a billboard is over the market rate. A 5ft (w) x 10ft ( h) billboard on the Metro pillar costs anywhere between `30,000 and `15,000 per board per month for an unlit billboard and costs `40,000 to 15,000 per board per month for a lit billboard. “It is priced on the higher side, but provides a prime location for those advertising with the Metro,” said Sudhir Kumar, manager advertising, Atin promotions and advertising — one of the companies that have got advertising contract with L & T. “We have received encouraging response and have done sales for both three month and one year worth of advertisements, but some clients are a little hesitant as the Metro has just started. It will take time,” he added.
“If you take the billboard of the same size as that on the Metro pillar and compare it to market rate , the Metro pillar billboards cost `5,000 more or less depending on the billboard and location,” said Vipul Talari, program head at Infinity Reach, a digital advertising firm in the city. “But the Metro’s pricing of the billboards is justified as the Metro offers good location and visibility,” he added.
At present, the Metro offers advertising options through billboards inside and outside the train and the stations, this apart from the Metro pillars and the viaducts. L&T hopes to also cash in by giving station naming rights and corridor naming rights to private entities. “These initiatives will be started in a phased manner,” said Kumar.
An email questioner sent to L&T Metro seeking details regarding the financial aspects and progress as to how many have so far expressed interest in adverting with the Hyderabad Metro went unanswered.
“Advertising with the Metro could be costly but their pricing is justified as they can offer prime advertising locations. For this rate, one can get bigger billboards but the location matters. The price will not deter anyone from advertising with the Metro,” added Talari.