MAKATI, Philippines - I just finished listening to President Rodrigo Duterte's Fifth State of the Nation Address and quickly, I couldn't help but note the salient points which are most relevant to the Out-Of-Home Media Industry. Basically, there are two main points which spell the survival of my industry friends in OOH.
1) It was good to hear President Duterte state directly to the Lessors to ease up on the rentals. To provide some form of relief to those who are renting property will mean a lot to the OOH companies who have to lease land to erect their billboards upon. As one who also rents land to erect an immovable structure on, it is not that easy to say to the lessor that I am cutting this contract. For what will happen to the structure wherein no less than PhP 2 million Pesos was spent on (based on 2004 construction cost). It is good to hear it from the President himself so we can go back to our lessors and ask for a reprieve even some extra months of no rent at all, because the President said so.
We all know that the rental bills are still being paid even if there is no advertisement posted on the billboard structure.
2) It was good to hear the President touch on the matter of the government financial institutions having to provide low interest loans for MSMEs. Around 95% of OOH suppliers would fall under MSMEs. Perhaps only the few large players in OOH fall under non-MSME class. Even then, all cash flows are affected, whether MSME or bigger.
The next big question of course is something else which the President cannot answer. That question is, "When will OOH bounce back?".
I have my estimates on when that will be. But that is for another article. In the meantime, let's hope and pray we hurdle this pandemic.
Stay Safe, OOH and Media friends!
-Want to know more about consultancy for OOH related matters? email me at info ( at ) ooh.ph or drop me a line by clicking here.
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