With few takers for long-time advertisement deals on suburban trains,both Western and Central railways have decided to offer short-term advertisement contracts. The new Siemens rakes offer less space on its exterior compared to old rakes and the railways are facing a dip in advertisement revenue.
Both the railways have chosen to ignore the Mumbai Railway Vikas Corporation (MRVC) objection to defacing the new Siemens rakes. The Western Railway,which is not plying any old rake in its suburban section after the completion of the DC-AC conversion,has decided to give its 10 Siemens rakes of its 78-rake fleet on advertisement contracts for vinyl wrapping on their exterior. The Central Railway,which has 44 Siemens rakes,has given a rake on a trial basis for advertisement. It also plans to give the rest of the rakes for advertisement on a first-come-first-serve basis.
Similar to TV and newspaper advertisements,those on trains also target potential consumers to recall the product. Compared to other mediums,the span of exposure to the target audience is less as trains are in motion. Railway will have to change the rates,which are high at present,particularly in the sluggish market conditions, a senior Central Railway official said.
As far as the MRVC objection is concerned,we are here to increase the earnings of railway and we are going in that direction. The duty of the MRVC to provide us Siemens rakes,which they did and are doing. Now,we have to think what to do.
The Western Railway has earned Rs 9,65,656 lakh in short-term contracts for eight Siemens rakes between December 2011 and February 2012.
The licence fee for 2,910-sq ft area the space available for advertisement is Rs 1,0,7694 for a month,Rs 1,93,849 for two months, Rs 2,69,233 for three months and Rs 3,44,618 for four months.
The CR official said: Now,69 old rakes have been given for exterior window panels for short term from February 9,2012 to March 8,2012 at Rs 8 lakh. One Siemens rake has also been given on a trial basis at Rs 458 a panel per month.