Feature: Rail And Metro Media Gets On Track
Rail and metro media has suffered in the past due to the lack of opportunity within the sector and the undesirable state of the nation’s rail network. However, the sector has seen a number of developments over the last five years and with revenue expected to top £142m by the end of this year (Outdoor Connection), rail and metro media is finally getting on track.
The latest figures from Outdoor Connection show that the sector, which includes any advertising within stations or on national rail, underground or light rail networks, has seen revenue increase by almost £50m over the last few years, up from £88m in 1998 to £137m in 2001 (see below). Andrew Allerton, joint managing director of Outdoor Connection, says that this is due to a significant growth in the universe of sites and an increase in the number of opportunities available to advertisers.
However, Allerton claims that the sector’s most attractive feature is its audience. He says: “Advertisers are latching on to the fact that rail and metro media delivers an audience that is young, affluent and upmarket. The sector allows brands to target ABC1s in a captive environment, which is increasingly valuable in the current economic climate.”
This brand-centric audience has proved successful in luring youth orientated advertisers to the sector and in 2001 entertainment and media brands accounted for 23% of the market, spending more than £30m over the course of the year (see below). The finance category accounted for 16% of the market and was the sector’s second largest investor, spending £16.3m during 2001. Travel and retail brands spent a combined total of £26m on rail and metro advertising last year, each taking a 9% share of the market.
Since 1999 rail and metro media has seen spend increase across all categories (see below) and with passenger usage of rail transport increasing, Outdoor Connection predicts that the sector will account for well over 20% of the total outdoor market by the end of 2002. According to Allerton, growth will be driven by new technologies such as Maiden’s Transvision screens and Viacom Outdoor’s cross track projection system (XTP).
The launch of Viacom’s XTP technology, which was originally scheduled for April, has been put back until next year and outdoor buying company Blade predicts that the delay could cost the outdoor industry £10m in revenue this year alone. Allerton admits that the rail and metro sector has suffered as a result of the setback, but is confident that digital media will be effective in attracting new advertisers. He says: “New technologies will extend the sector’s existing strengths, creating new opportunities that will allow greater creativity within the medium.”
Outdoor Connection is hopeful that car and upmarket fashion brands, which have largely overlooked rail and metro media, will be drawn to medium over the next few years and Allerton argues that this will help growth, which has so far been in line with the rest of the outdoor industry, to exceed expectations.
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