Feature: Outdoor Industry Remains Bullish
The advertising downturn has taken its toll on the UK’s main media sectors, with figures from the Advertising Association showing that total UK ad expenditure fell 3.2% to £13.8bn during 2001. The outdoor industry is no exception, but with revenue declining less than other media, Matthew Carrington, chairman of the Outdoor Advertising Association (OAA) argues that: “In the current economic climate outdoor advertising is one of the most efficient and cost effective ways of conveying brand-centric messages to a mass audience.”
AA figures show that the outdoor industry has experienced a period of growth over the last ten years with ad expenditure more than doubling since 1991 (see below). Revenue for 2001 was down 3% year on year to £677m but the sector still managed to outperform TV, which fell 11%, radio, which was down 9% and national newspapers, which slipped 8% during 2001.
Managing director of Maiden Outdoor, Dave Dron, said: “The harsh economic climate is forcing brands to take a multimedia approach to advertising. The TV industry is bearing the brunt of the downturn and as a result outdoor is doing better and better. Five years ago if you looked at the top advertisers, only 35% of them had outdoor accounts, now 85% do.”
Outdoor is still a long way behind TV and national newspapers in terms of annual ad revenue (see below) but the increasing sophistication and accountability of the medium are drawing an increasing numbers of brands towards the industry. Carrington said: “The introduction of backlit, scrolling and giant sites have helped to raise the profile of the sector. Advances in research and the introduction of audience measurement tools such as Postar mean that the industry is more accountable and can offer an impressive return on investment.”
The increase in road and rail traffic also means that outdoor’s audience is increasing, while the potential consumer base for other media, such as TV and national newspapers, is in decline. A recent report from JCDecaux shows that the total UK roadside audience increased 2.6% year on year from 2000 to 2001 and that the number of impacts rose by 150 million per week to over six billion. JCDecaux’s marketing director, David McEvoy, said: “The medium is more effective than ever before and this research gives a positive message to advertisers: that outdoor is thriving and continues to offer excellent value for money.”
The OAA predicts that 2002 could be a “key growth year” for the outdoor industry. However, Carrington says: “In 2002 everything depends on the economy. If ad spend goes up outdoor will perform disproportionately well against other media. If the economy remains flat the industry will hold its own, but growth will be less significant.”