Bus Ads Leading Outdoor To Recovery, Says Blade
Bus advertising is leading a recovery in outdoor revenue, according to Q1 figures from the bladeTracker report. The delay to the launch of Viacom Outdoor’s XTP system (see Viacom Outdoor Delays Launch of XTP) has caused Blade to cut its forecast from last year of 4% growth in 2002, but it is still expecting 2.7% growth in revenue for the year, as, in what is described as a “tough comparison” to Q1 2001, revenues for the first quarter of this year were only down 2.3%, at £179m.
Nick Maddison, joint managing director of Blade, commented: “With buses and underground doing so well, Viacom Outdoor should be delighted. Although Q1 had its casualties too, overall the picture is very positive. To achieve revenues anywhere near that achieved in Q1 2001 is fantastic.”
The report reveals that 6 sheets and ambient advertising had a “fairly static” start to the year. In the case of the former, prices have fallen on average, which the report attributes as much to advertisers taking up short-term opportunities as the supply increasing 5% in the last 12 months. Point of Sale has faired better than Roadside, while the Transport sectors are said to be “working hard to attract the levels of business they’re used to”. In ambient, some formats are said to be booming while others have struggled.
The 48 and 96-sheet market are yet to see signs of recovery. The last two weeks in January were apparently the worst period in years, with demand only occupying half of the supply. Blade attributes the double-digit revenue falls seen here in the first quarter of the year to the struggle for marketing budgets seen in the Telecom, Financial Services and Travel sectors.
Giant sized posters have fared better during the quarter, with a 20% revenue increase. However, as Blade points out: “Admittedly, this is a growing sector in terms of stock and thus revenue should be on the up.”
The success of bus advertising comes with no such caveat. For the first time ever, Viacom managed to sell every National T side pack for every 2-week period across the quarter. Underground also did well, returning a positive rate and revenue comparison year on year.
Blade: 020 761 21300
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