Outdoor Ad Spend Falls Again
The Outdoor Advertising Association (OAA) has announced that outdoor ad spend has slipped 1.6% year on year, falling for the third consecutive quarter.
Outdoor ad spend fell by 6.9% in Q1 compared with the same period in 2007, which was the biggest decrease in the sector in the last six years.
Alan James, chief executive of the OAA, said: “Given the uncertain times all industries are currently experiencing, a decrease of 1.6% in Q2 should be seen as a very acceptable result.”
He added: “Within the Q2 2008 figure, digital outdoor screens revenue increased by a whopping 62% – outdoor’s new format is now generating substantial revenues and looks set to keep growing at a market beating rate.”
Reports show that revenue will need to be more than £16 million higher than Q2 2008 in order for Q4 outdoor ad spend to match the same period in 2007.
Outdoor has experienced six years of consecutive quarterly growth, despite seeing three quarterly year on year declines in a row recently.
Vodafone, T-Mobile and Coca-Cola all increased outdoor ad spend in Q2 – Coca-Cola by around 859% year on year – while food and retail advertising outdoor spend declined in the same period.
Jeremy Male, chief executive of JCDecaux UK & Northern Europe, told Media Week: “We’re desperate to get back on the growth path. Q2 was in line with my expectation, but it’s still too early to say about Q3 and Q4.”
Outdoor Advertising Association: 0207 973 0315 www.oaa.org.uk