Sergey Gorbatov, Group CEO of Blue Ad, shares his thoughts on how supportive the out-of-home (OOH) advertising landscape is, creativity and the future of digital out-of-home (DOOH) in Dubai.
What do you think of the future of digital OOH in Dubai?
Dubai currently has a relatively low proportion of DOOH compared to other countries. China, Germany, South Korea, and the US all see the share of digital between one-third and half of all OOH, while in Russia, Australia, and the UK, this share has already exceeded two-thirds.
Until now, Dubai has been a conservative city in this respect, with clients who love to stand out by being the only, exclusive client in a particular location. This is a seemingly easy endeavour, with an abundance of dominating installations such as hoardings, enjoyed by many.
However, we have little doubt that the share of digital will grow steadily and inevitably in Dubai. As the city of 3.5 million residents expands, a network of digital assets will become the best and most modern solution to deliver coverage, targeting the audience that you need, offering high GRP/OTS, and keeping CPT low.
The ability to launch a bright, noticeable digital campaign in a matter of minutes, when and where you want, is something that traditional OOH can never provide.
How supportive and transparent is the regulatory framework for the OOH industry in Dubai?
This continues to be a significant challenge. So far, the legislation and its implementation are neither clear nor investor-friendly. Moreover, it is detrimental to the emirate itself.
Advertising permits are issued for just 1 year—basically, for the period of time that they are paid for. Then, an extension is granted almost automatically, even for those assets that cease to match any new legislative requirements or are no longer part of the city’s vision. As a result, tens and hundreds of obsolete rooftops, signs, and installations flood the city.
A more effective strategy could involve issuing 3, 5, or 10-year annually payable permits, depending on the asset type, which would guarantee the investor a project’s lifetime, but no longer than that. After the permit’s expiration, the municipality should be free to discontinue any location, as the city is a living entity that needs flexibility in reshaping its landscape, with OOH being an integral part thereof.
An excessive number of hoardings—while filling the treasury with income—inflicts more harm than good on the city, creating a “monstropolous” chokehold by oversized installations, with architecture, environment, and neighbourhoods all left behind this curtain of advertising giants.
Tenders are a major issue. They come out all of a sudden and are almost never finalised in time. Tender rules need to be unified, transparent, and followed by everyone.
Buffer zones and ad-free zones that have been introduced recently, as well as unclear traffic security decision-making, add to the ambiguity and uncertainty that the industry faces.
We are hopeful that the establishment of the new agency overseeing outdoor advertising will bring positive change and clarity to the rules to which the industry adheres.
Should there be a place for creative OOH in Dubai?
Without any doubt. As long as it remains safe, it should, in fact, be encouraged.
As an international group, we have rich experience in carrying out special projects, which include 3D-building wraps, oversized transit outdoor ads, creative indoor solutions, and much more.
Part of this approach is our first-in-the-world vessel, named “Illuminate,” equipped with 3D-LED screens, commissioned this year, serving Dubai’s Marina, JBR, and Jumeirah areas.
By Sergey Gorbatov, Group CEO of Blue Ad
