Outdoor Advertising Grows Strongest Where TV Is Weak, Finds Study

The UK market has grown most dramatically in terms of the volume of outdoor ads, expanding by nearly 70% in the last ten years – equivalent to more than £500 million in extra revenue, says Media Intelligence. France and Switzerland have remained stable, while growth in Spain and Germany has been modest, and in Italy and Belgium there have seen significant declines.

“The markets with the most sites are generally the most successful for outdoor but this isn’t a guarantee of success. Growth often tends to be restricted where TV advertising is strong (Italy) or growing rapidly (Germany, Belgium, Sweden and Norway). Where it is weaker (Switzerland) or faltering (UK, Ireland, Holland) outdoor advertising flourishes,” says Media Intelligence director Jon Puleston.

Innovation boosts costs and yield The report also found that costs vary substantially by format and by country. In markets where traditional formats dominate (Austria), outdoor often struggles to generate high yields. “By contrast the UK has largely abandoned the older 4-sheet format, replaced it with Citylights and introduced a range of premium poster formats, all of which has led to increases in average yield and strong growth for the medium as a whole,” says the study.

Puleston says that outdoor has an excellent future in Europe, providing the medium continues to invest in marketing and development. In cost per thousand (CPT) terms, outdoor is still two to three times cheaper than other media. “Once markets and specific advertising sectors can be stimulated into using the medium and learn how to use it effectively, they appear to stick by it, as is evident by its progress in France and Switzerland, despite the growth of commercial TV in those countries, and by the rapid growth of the UK market,” he says.

Forecasts Revenue for the UK outdoor industry was down by 2.5% in 2001 but the medium is expected to rise out of the downturn with 4.2% growth in 2002, according to forecasts from outdoor buying company Blade, released at the beginning of the year (see UK Outdoor To Show Good Growth In 2002).