Take the case of Tirupati Apartments at Cadbury Junction in South Mumbai. When a 40x20 foot hoarding was put up on its side walls six years ago, the residents of the 146 flats could hardly have guessed what lay in store for them. Today the society earns about Rs 1.40 lakh per month from this hoarding, which translates into lower maintenance costs. Residents now have to shell out Rs 1.25 per sq ft compared to Rs 4 per sq ft a few years ago: a saving of around Rs 36,000 per year for each flat-owner. The advertisers meanwhile are happy because the hoarding is viewed by 1.10-1.15 lakh people daily. Indeed, being part of a space-starved city, the stakeholders have learnt to profit from every inch.

HOTSPOTS

CADBURY JUNCTION Viewed by 1.10-1.15 lakh people. Fetches between Rs 9 lakh and 9.5 lakh per hoarding. MAHIM CAUSEWAY Viewed by 1.6 lakh people. Fetches between Rs 8 lakh and 8.5 lakh per hoarding. HAJI ALI Viewed by 1.4 lakh people. Fetches between Rs 6.50 and 7 lakh per hoarding. WORLI-SASMIRA Viewed by 1.2 lakh people. Fetches between Rs 6.50 and 7 lakh per hoarding.

The potential value of the empty space on building walls started being explored around seven years ago in Mumbai. The history of billboards-on-buildings is not available but advertisers say that Mumbai was the first city in the country to develop this concept. "The hoarding culture took root in Mumbai primarily because there is no ban on this kind of advertising, unlike in cities like Delhi," says Atul Ashar, director, Orion Advertisers. He admits that some other cities like Kolkata and Chennai too have hoardings on residential buildings. "But this phenomenon started in Mumbai and this city still has the largest number of billboards in the country," he says. "Though a PIL was filed in 2002 for a ban on hoardings, citing violations of several coastal regulation zones and Brihanmumbai Municipal Corporation (BMC) laws, no decision has been taken," he adds.

However, the profits have not come without pain. While the hoardings rake in money, they also have their disadvantages-for some they become simple eyesores while in some cases they lead to inter-apartment rivalry over the price they command. Residents of Sea-Gull building at Haji Ali complain that the hoardings on the Heera-Panna building in front of their own hog the skyline. "The hoardings obstruct our view of the Arabian Sea. But since they have BMC permission, we have no say," complains Anand Rajpal, president of Sea-Gull Apartments.

But the fuss may actually have more to do with monetary than aesthetic considerations. After all, the hoardings on the Heera Panna building actually hamper the visibility of the Sea-Gull hoardings. This has resulted in Sea-Gull commanding a less than desirable price for its hoardings, even though it is viewed by nearly 1.40 lakh people daily. "Although we are in one of the most prime localities in the city, we get only Rs 30,000 as rent from this hoarding. We can barely provide for any maintenance in the building," rues Rajpal.

Not all, however, see these hoardings as a source of income. "Some residents feel that hoardings will lead to cracks in ceilings causing leakages or even spoil the aesthetic appeal of the buildings. In areas like Napean Sea Road they are strictly against putting up hoardings. They are well-to-do people and feel hoardings are a nuisance," says Ashar.

Of course, although the building is the advertising medium, what its owners get as rent from the billboards is much lower than the actual spending by the advertiser. In most cases, a vendor enters into a five- to 10-year contract with the building management wherein he pays a fixed amount whether or not the hoarding has an advertisement on it. But while the vendor takes in Rs 6-10 lakh per 40x20 foot hoarding, housing societies get only between Rs 30,000 and Rs 1.5 lakh, depending on the location. "We entered into a contract of Rs 1.4 lakh a month, which was good five years ago. But now the rates for outdoor advertising have gone up and we still get the same amount, as our contracts are fixed," complains Pankaj Gandhi, secretary, Tirupati Apartments. Clearly, expectations have changed with rising rentals.

Advertisers, however, disagree. "Vendors have to pay the BMC a fixed amount every month. In addition, there are other taxes like assessment tax, municipal licence fees, etc, which eat into the profits. Also, the monsoon months are lean periods when there are no advertisements on the hoardings, yet the building is paid a fixed amount," asserts Ashar. In most cases, the advertisers explain to the vendors the amount they are willing to shell out and then the vendors proceed to buy space for the advertisements. They haven't yet begun building complexes with provision for hoardings on the roof, but that could just happen, too.

The boom in outdoor advertising is attracting many building-owners to rent out spaces. "There is a high level of fragmentation in mainstream media like print and television. Brands are now turning towards outdoor advertising as it is an effective medium. Its efficacy has been established through research," says Anuj Kanakia, group head, Starcom. Advertising on residential buildings looks like a win-win situation, for the brands, the vendor and the residents.

Such deals have other advantages too, especially in a city obsessed with celebrating life. As the Tirupati society has discovered, it can fund grand parties and galas now. "We have one of the most impressive parties in this area during festivals. These are organised with the money that we earn from the hoardings," says Gandhi.

The city might as well cash in on the boom before Mumbai decides to ban outdoor advertising like Delhi.

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