Following the exit of Rediffusion DY&R as one of its strategic partners, outdoor media planner OAP (Outdoor Advertising Professionals (I) Pvt. Ltd) is looking to include a media agency as a “strategic partner” in the company. Since media agencies play the role of one-stop-shop for the advertisers, any such partnership should boost OAP's business.

“Down the line we will look into strategic partnership with a media agency to keep us growing,” Mr Abhijit Sengupta, CEO, told Business Line.

Majority stake-holder

OAP currently has outdoor media owner Selvel Advertising Pvt Ltd as its only strategic investor. Following the recent acquisition of Rediffusion's stake, Selvel – a prime investor in the company since its inception — is also majority shareholder in OAP.

Having clocked “earnings” (profit in common parlance) of Rs 15 crore in the previous fiscal, the company is aiming to double its margins in the outdoor media (billboards and other such advertisement vehicles) business over the next two years.

While the total billing of the outdoor media industry has been flat since the economic meltdown in 2008, OAP claims to have grown by “grabbing” market share.

Beyond the traditional offerings, the company is expecting its recently launched “alternative outdoor” plans – like advertisements on railway platforms, electricity bills, indoor and others — to be a substantial revenue churner in the coming years.

Hiving-off Touchpoint

The biggest growth, however, is expected in the company's environmental branding business division – Touchpoint – which includes navigation signs in hotels, hospitals, retail design, commercial interiors and others.

“This sector is estimated to have a market value of Rs 6,000 crore, bigger than outdoors, and is fast expanding,” Mr Sengupta said.

In view of its growth prospects, OAP is now considering hiving off Touchpoint into a separate venture.

“We may have to take a call on this soon.”

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