BMC OOH policy risks clutter, impacts aesthetics & may fall short on safety: Media owners

The Brihanmumbai Municipal Corporation (BMC) proposed OOH policy has sparked significant concern among industry players, who argue that it risks creating visual clutter, undermining the city’s aesthetic appeal, and potentially falling short in ensuring public safety, which is ironically the very issue the policy aims to address. 

The 58-page OOH draft policy is currently open for public suggestions and objections until August 26. Once approved, the new policy will oversee all outdoor advertising approvals, including digital formats, for the next decade from the date of issuance. 

Media owners believe that rather than enhancing safety, the policy’s approach may inadvertently exacerbate the problems it seeks to solve. 

While the OOH media owners' bodies are still drafting a nuanced response outlining all minor and major points, e4m has sought to categorize some of their concerns into 10 broader points: 

Impact of distance reduction on visual clutter

One of the most pressing issues with the proposed policy is the reduction of the minimum distance between billboards from 100 meters to 70 meters. This change is likely to result in a significant increase in the number of OOH media installations, potentially doubling their presence in the city within a few years. 

“Such a density increase could lead to severe visual clutter, detracting from Mumbai's aesthetics and potentially compromising the overall visual appeal of the cityscape”, says Junaid Shaikh, Managing Director of RoshanSpace Brandcom. 

Our efforts have focused on replacing outdated and cluttered installations with innovative, large-format displays that contribute positively to the urban environment. If the policy is implemented, these efforts will be negated, stakeholders feel. 

Safety and structural integrity concerns

While targeting illegal billboards is a welcome move, the policy's lack of clarity on what constitutes "illegal" introduces uncertainty and could impact the industry negatively. The recent Ghatkopar incident, which highlighted the need for stringent safety standards, underscores the importance of a scientific approach to structural assessments. 

Shaikh noted, “The current system, which relies on BMC-certified engineers, may not be sufficient. We advocate for the involvement of third-party institutions such as IIT or VJTI in the certification process to ensure higher safety and structural integrity standards.”

No database of legal sites

The policy lacks provision for creating a database of all legal OOH sites in Mumbai. Such a provision would make it a lot easier for advertisers to book only legal sites.

Incidentally, the IOAA had earlier proposed partnering with BMC to develop and publicly share such a database on the IOAA website. Currently, there is widespread confusion among advertisers and brands regarding which hoardings are legal. 

“All brands and media agencies we’ve approached are eager to comply with regulations and only use legally sanctioned sites that meet BMC's structural stability standards. Establishing this database would undermine the profitability of illegal hoarding operators, as they would no longer be able to sell unauthorized advertising space,” say IOAA officials. 

Challenges to industry investment and innovation

The proposed policy may have unintended consequences for future investments and industry growth.  OOH players have invested substantial resources in Mumbai over the decades which are now at the risk of being deemed illegal. 

Stakeholders say the policy seems unilateral and arbitrary, severely impacting their willingness to invest further and bring in international partners in an environment that doesn't appear to support law-abiding businesses. It may also hinder the industry's growth potential.

‘Unease’ of doing business 

The policy draft proposes blacklisting advertisers for violation. Once marked, an advertiser will be prohibited from applying for new hoarding installations, with the blacklisting being either permanent or for a specific period depending on the offence.  

The advertisement license fee will be increased by 10% every year. It also proposes mandatory insurance coverage ranging from Rs 5 lakh to Rs 1 crore to cover potential loss or damage caused by hoardings. 

“Several restrictions on hoarding placements, cap of 40 feet by 40 feet and prohibiting hoardings on building terraces, construction fences, dead walls, and glass facades, on footpaths, traffic islands, medians, and gantries would lead to loss of a substantial advertising opportunity,” say media owners. 

Collaborative approach missing 

The draft guidelines preface a quote from Julius Klein, Assistant Secretary of Commerce and head of the U.S. Commerce Department in 1929, echoing a sentiment earlier voiced by Secretary of Commerce Herbert Hoover, who declared that “Advertising is the vital force of our national life.” 

“The historical significance of advertising, akin to the role of Out-of-Home (OOH) advertising in Mumbai today, underscores the need for effective collaboration between business and government—an approach notably absent in the current guidelines,” says Praveen Vadhera, CEO of IOAA. 

“International experts who have shaped OOH standards in major cities should be consulted in framing these guidelines. Additionally, OOH should be integrated into city development plans rather than treated in isolation, a perspective currently lacking due to the absence of consulting urban or town planners,” says Vadhera. 

Discrepancies and Loopholes

The current guidelines are vague and open to subjective interpretation, creating significant challenges for implementing aesthetically designed structures. For example, Clause 2.5(g) assigns liability for accidents solely to the "Advertiser," but due to inconsistent use of terms like Agency, Permit Holder, and Advertiser throughout the document, there is confusion about who is truly responsible. 

A top advertiser says, “This misinterpretation has led to erroneous beliefs that brands, rather than site license holders, are liable. Such ambiguity throughout the guidelines creates loopholes that could be exploited to bypass regulations and corrupt practices to arm-twist the advertisers for no reason.” 

Lack of holistic and transparent approach

The policy's lack of a holistic approach is concerning. Effective regulations should address not only safety and aesthetics but also incorporate technological advancements and ease of doing business. The absence of a clear, transparent permitting process exacerbates these issues, potentially leading to increased bureaucratic hurdles and opportunities for corruption. This has been a long-standing issue despite rising license fees and a lack of progress in improving the ease of business.

Impact on existing installations 

Existing billboards, many of which were constructed under valid permits and have set high standards for safety and aesthetics, should not be retroactively penalized. These installations have played a crucial role in shaping Mumbai's OOH landscape and should be preserved as benchmarks for future standards, say media owners. 

Narrow outlook 

Globally, OOH advertising has proven to be a key driver in developing state-of-the-art urban infrastructure in major cities, benefiting local authorities, advertising practitioners, and residents. BMC’s policy lacks a vision, allege media owners.  

As per Statista, the DOOH market in India is currently estimated at $100 million and is expected to grow at 16 per cent compound annual growth rate. Mumbai, being the commercial capital of the country, commands a significant share of this market.

According to Shaikh, “We advocate for a policy for the city that is both forward-thinking and considerate of existing investments. By aligning with global best practices and ensuring stakeholder engagement, we can develop a regulatory framework that enhances Mumbai's skyline while fostering growth and innovation in the OOH sector.”

In advanced nations, OOH media companies often develop and maintain city infrastructure and street furniture, enhancing quality of life and saving municipalities significant costs. The guidelines should reflect this broader vision, integrating subject matter research and global best practices to foster vibrant urban environments rather than merely regulating hoardings and signage, says Vadhera.