BBMP’s fresh Ad policy ‘monopolistic’, claim advertisers

The Bruhat Bengaluru Mahanagara Palike (BBMP) has begun auctioning advertisement rights after lifting a seven-year ban on hoardings in the city, with the aim of generating over ₹500 crore in revenue. However, local companies fear they may lose out to bidders from other States.

Last month, the Karnataka government introduced a new advertising policy, but the rules framed under it have left advertisers deeply dissatisfied. During the pre-bid meeting, attended by more than 60 companies, several concerns were raised, with many alleging that the system is designed to “favour” large firms.

A local advertiser who attended the meeting said the entire process of participating in the bid has been made unnecessarily cumbersome.

“The tenders were floated in the last week of July, and the last date to upload them is August 25. This leaves hardly any time to secure advertising rights and obtain a No Objection Certificate (NOC),” the advertiser explained.

The tender document requires bidders to obtain fresh rights, as the previous enrolment is seven years old, and to secure an NOC from the civic body’s advertisement department.

“We need to submit our business records to the advertisement department for verification to obtain an NOC. These records include our track record with the BBMP, which the department scrutinises thoroughly. This process involves repeated clarifications and will take considerable time,” the advertiser said, adding that most of the available time is wasted in back-and-forth queries.

Interestingly, advertisers believe that obtaining an NOC will be far easier for new entrants, especially those from outside Karnataka, as they do not have to submit a track record with the BBMP. This, they argue, gives outsiders a competitive edge.

Despite the cumbersome process of acquiring an NOC after securing advertising rights, only two applicants had applied for it as of August 15, according to a well-placed source in the BBMP. The NOC is mandatory to be attached with the final tender form.

Advertisers fear that the new system will tilt the balance heavily in favour of large companies.

“As each zone will be awarded to a single company, only big players with deep pockets are likely to win the bids. This new policy clearly favours newcomers and big corporations, while smaller firms are left with no opportunities,” another advertiser remarked.

Moreover, companies that win a bid must pay an upfront fee five times the bid amount, a requirement that effectively excludes smaller firms from the competition.

As per the new policy, only eight companies will be granted advertising rights across the city.

“This will not only create a monopoly for one company in each zone but will also strip property owners of their bargaining power,” an advertiser said. The new rules also prohibit advertising on public spaces such as footpaths and trees, compelling advertisers to negotiate with private property owners for space.

Additionally, advertisers allege that the civic body has already entered into Public-Private Partnerships with companies managing advertisements on bus stands and billboards, which effectively reduces the available space for new bidders.

Despite the widespread criticism expressed during the pre-bid meeting, the BBMP remains firm on its plan to conduct the technical bid on August 27.

A BBMP official said that there is enough time between rolling out the auctioning process and the closing of the tender. “The policy is modelled around Delhi’s advertisement policy approved by the Supreme Court, while also keeping in mind the pollution and other environmental aspects,” the officer said.