Dreamers Media and Advertising, a Pune-based ‘integrated media company’, has announced its intent to acquire and offer passenger car exteriors to advertisers.
For cars priced up to Rs 6,00,000, Dreamers will pay the EMI on behalf of car buyers for three years (on a five-year loan period), in return for advertising covering 40 to 60 per cent of the car’s exteriors. The company will also look at used cars, informed spokespersons. A commercial launch is expected in September 2013.
The core target group is ‘middle income group with annual income less than Rs. 10,00,000 who feel a pinch in the pocket while paying their EMIs’, according to an official statement.
The company plans to commission a survey to study acceptability of advertising on private vehicles amongst consumers. Car owners need to travel an average of 1500 km per month for their vehicles to be eligible.
Among advertisers, Dreamers claims to have received positive response. The cost to advertiser would be a mark up on the EMI, insurance cover and related costs, informed Shivani Lorai, director - marketing and sales, Dreamers.
For a loan amount of Rs 3,80,000, the EMI works out to approximately Rs 8,500, for a period of five years (@ 12.5 pc interest). For an advertiser, the minimum period to engage any type of car is three months, with a minimum of 50 cars per city.
“Someone who has purchased a car fully even can earn through this concept. This way the car, traditionally a depreciating asset, turns into a performing asset,” said Sunis Mohamed, CEO.
Dreamers is looking to offer AAAI-accredited agencies a credit period of 30 days, while other advertisers will have to come in with part advance payment.
September 2013 is the targeted month for launch in tier 1 cities, with national expansion on the radar within a year. In year two of operations the company intends to go to Apac and Middle East.
The company has invested in back-end support processes like a 24 x 7 call center, in-house design team and field staff, Mohamed added.
In end-2010, Campaign India reported a similar attempt in the space. A company Adometer started by stockbroker Karan Bharadwaj and entrepreneurs Vishal Shah and Kiran Rao, launched with the promise of either paying EMIs directly, giving fuel vouchers, voucher of the brand advertisers or insurance fee waivers, started operations. The company’s website www.adometer.in is not functioning now.