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Ambient Advertising Outgrows All Other Media, Says Concord

Ambient Advertising Outgrows All Other Media, Says Concord

The fastest growing advertising medium of last year was not the internet, or indeed any of the traditional offline media, but rather ambient media, according to the latest report on the industry by outdoor contractor Concord.

The term ‘ambient advertising’ essentially covers a range of new marketing techniques that have been developed in recent years, but which do not fall into any of the broad traditional media categories such as press, television and cinema. Ambient sites include pubs, toilets, bus stops, transport stations, music venues, petrol stations, telephone boxes and so on. Ads on bus tickets and match boxes and the like would also be termed ambient.

Concord’s report forecasts that ambient media revenue is set to reach £111.3 million for the whole of 2001 – a year on year growth of 24%. This growth outstrips even internet advertising’s performance, according to figures from Optimedia, which suggest that UK Net ad revenue will grow by 20% in 2001 to £120 million (see Forecasts). Ambient revenue rose by 36% year on year in 2000 to reach £90.1 million, according to Concord.

UK ambient media revenue 1996-2001(f) 
             
  1996  1997  1998  1999  2000  2001(f) 
Revenue (£m) 17.4 32.6 54.3 66.3 90.1 111.3
             
Source: Concord/bladetracker, 11/01 

The transport sector comprises that greatest share of ambient revenue, at 27% or £24.6 million. In second place was leisure ambient (cinemas, stadia, restaurants etcetera), which brought in £21.0 million of revenue. The 2000 shares and growth trends for each of the sectors are shown below.

Ambient media revenue trends by sector 
             
  1996  1997  1998  1999  2000  2001(f) 
Transport 5.0 7.8 13.1 17.0 24.6 32.2
Leisure 3.4 7.8 11.4 14.9 21.0 25.0
Point of sale 5.0 8.9 15.3 16.8 20.2 24.5
Roadside 2.0 4.0 7.1 11.4 15.6 19.1
Other 2.0 4.1 7.3 6.3 8.7 10.6
TOTAL  17.4  32.6  54.3  66.3  90.1  111.3 
             
Source: Concord/bladetracker, 11/01 

The outlook Concord says that technology is painting a bright picture for the ambient market through developments in digital outdoor and advancements in accountability. The group is anticipating greater caution from advertisers and the industry should be ready to ‘weather the storm’.

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