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Outdoor Media Inflation Outstrips Other Sectors

Outdoor Media Inflation Outstrips Other Sectors

The relative cost of using outdoor advertising has risen more quickly than all other media over the last seven years, according to media inflation figures. The data shows that it is more than twice as expensive than in 1995 to reach a given number of people using outdoor advertising.

A standard measure of the cost of advertising is to look at how much needs to be spent in order to achieve 1,000 ‘viewings’ by consumers. This is called a cost per thousand (CPT) figure and is usually expressed in pounds. If 1995’s CPTs are indexed as 100, then in 2002 cinema’s CPT stood at 203 – by far the largest rise of the major media over the period.

Figures compiled by the Advertising Association and Mediaedge:cia show that all media combined saw a CPT rise of 36% between 1995 and 2002. Within this, the largest increases were from outdoor (up 103%), cinema (up 78%) and radio (up 62%). Television, despite recurring complaints from advertisers of ITV’s costly rates, saw CPTs up by 41%, pretty much in line with the overall market.

Figures for the internet’s CPT – which are based on standard banner ads – are only available from 1998, which has been indexed as 100. The internet is the only category to show a decline in audience cost for advertisers, with CPTs falling by 47% between 1998 and 2002.

Last year was also the first year of the last seven to show a total media year on year decline in CPT. It was down slightly in indexed terms, from 2001’s 137 to 136. However, it should be noted that the 2002 figures were still estimates at the time the data were compiled.

Annual Media Cost Inflation (1995=100)* 
                 
  1996  1997  1998  1999  2000  2001  2002  % Growth 
Television 111 119 127 132 142 130 141 41
Radio 121 138 157 157 176 157 162 62
Newspapers 103 105 113 111 115 113 115 15
Magazines 105 116 121 132 138 149 152 52
Total press 104 111 117 121 124 130 125 25
Cinema 99 106 120 147 150 175 178 78
Outdoor 113 133 149 158 197 192 203 103
Internet*     100 109 84 69 53 -47
Total media  108  116  124  126  139  137  136  36 
* Internet index: 1998=100 
Source: AA/Mediaedge:cia estimates 

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