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Insight Analysis: Feature: Outdoor Holds Onto Its Place In The Sun

Insight Analysis: Feature: Outdoor Holds Onto Its Place In The Sun

While press reports declare the UK to be slipping into ad revenue decline the outdoor industry continues to enjoy a boom period. Still one of the market’s smaller players, with around 5% of total adspend, its growth continues, partly as a result of corrosion across other media.

Iain McLellan, director of the Outdoor Advertising Association (OAA), says that with TV suffering fragmentation and national newspapers facing long term readership decline, “if outdoor did nothing, it would still stand to gain.” In fact consolidation of ownership, improved plant, new technology and better research have all helped to boost the sector. “We are also one of the few areas where the consumer market is growing, thanks to more people on the streets and stuck in slow-moving traffic,” he says.

OAA members’ revenue totaled £555m during 2000, an increase of £97.6m or 21.4% on 1999. Six sheets and 48 sheets grew by over 15%, while the 96 sheet market added 33% year on year and other outlets saw a 25% increase. McLellan expects to see growth continue across the board.

Outdoor’s advantage is that it can innovate rapidly. “New formats, like supersites, have increased impact,” according to Stevie Spring, CEO of More Group. Last year new supersites were launched by companies including Van Wagner and BlowUP. An Outdoor Connection report predicted a rapid rise in the revenue and number of these giant sites (just under 90 at present) driven, according to director David Payne, by “the desire for cityscape standout”.

Another Outdoor Connection report highlighted technology-based outdoor. With new formats including TV screens in petrol forecourts, it described the sector as “about to take off.” Worth £100,000 five years ago and £2.7m in 1999, fourfold growth to £8.7m in 2000 is predicted. This is echoed by other ambient formats, such as taxi advertising, which grew 40% last year, and saw investment by the More Group. “Ambient growth is driven by the trend for anyone who owns a place where the public gathers wanting to generate an additional income stream,” claims Spring.

While adaptation is key to outdoor’s success, there is danger inherent in taking advertising “where no other medium can.” Clutter reduces message impact, hence contractors’ commitment to increasing plant quality not quantity. McLellan claims the OAA has seen no indication of clutter being a problem yet, but Spring concedes, “We must all be vigilant and work with media planners and the planning authorities to maintain impact and efficacy.”

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