Feature: Ambient Media Makes Its Mark
Ambient has long been regarded as the black sheep of the outdoor media family and advertisers have viewed the medium, which seems to lack any hard and fast rules, with a certain degree of suspicion. However, newly released figures from Concord show that the sector’s revenue topped £100m during 2001 and with further growth predicted for 2002 ambient has finally proved that it can play with the big boys.
Analysis of the figures compiled by Concord shows that between 1996 and 2001 ambient media has seen revenue increase by almost 500% (see below). Growth has slowed over the last few years, but during 2001 the sector expanded by 12% year on year, against a decline of 3% for the outdoor industry as a whole.
According to Concord’s managing director, Nigel Mansell, the sector’s growth during 2001 has been largely driven by digital out of home media, which despite the delay of Viacom’s XTP technology saw revenue increase by 33% year on year to £9.2m. Transport continued to be the largest sector during 2001 (see below), increasing its market share to 30%, followed by Leisure (23%) and Point Of Sale (20%).
It terms of revenue, the Transport sector enjoyed 23% year on year growth during 2001, securing business in excess of £30m. Leisure saw revenue rise from £21m in 2000 to over £23m in 2001 and Point Of Sale grew by 18% year on year to £20.1m (see below).
James Davies, new media director of Hyperspace, insists that an increasing number of advertisers are taking advantage of the opportunities provided by the 400 ambient media owners that now operate in the UK. He says: “Over the last few years the sector has become increasingly sophisticated, greater accountability and professionalism is attracting major brands and contractor confidence is growing.”
Concord estimates that the increasing prominence of new technologies and improved accountability will cause revenue for the ambient sector as a whole to exceed £113m by the end of this year. Davies says: “The launch of Viacom’s XTP technology next year will bring in several millions of pounds worth of revenue and Maiden’s new Transvision screens will also help to attract new advertisers.”
However, this growth could prove something of a mixed blessing. The amount of complaints the sector generates to the ASA has soared since 1999 and with more opportunities on offer there is a danger that ambient could become the new spam.
According to Davies, many brands are already using the medium irresponsibly, which is having a detrimental effect. He says: “There is a fine line when using ambient. Brands need to think creatively and intelligently about ambient campaigns and make sure they add value to their surroundings. Badly executed campaigns serve only to annoy consumers and add to the ever increasing amount of advertising clutter.”
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