Outdoor advertising’s revenue growth slowed towards the end of the year, with weaker than expected results for the fourth quarter of 2005 resulting in overall growth of 5.7% year on year.
According to new figures from the UK Outdoor Advertising Association (OAA), revenues were up by just 2.02% year on year in Q4 2005, half the rate seen in the previous quarters. The OAA claim that outdoor advertising enjoyed a £897 million share of UK adspend in 2005.
Commenting on the figures, Alan James, chief executive for the OAA said: “The figures reflect an overall media slowdown. I don’t think there is any one medium that is showing real growth.”
Looking towards 2006, predictions for outdoor adspend remain flat, with the previous estimate of 9% growth currently under review.
Growth in other traditional media looks to be similarly depressed, with the OOA projecting a slight year on year increase of 1.2% for TV, and a 0.6% rise for consumer magazines.
Radio, national and regional newspapers are expected to suffer declines, dropping by 5.3%, 3.9% and 5.3% year on year respectively.
Outdoor advertising in the US looks set to enjoy a strong 2006, with estimates from TNS Media Intelligence forecasting the media to rise by 7.2% year on year (see TNS Forecasts US Adspend To Rise By 5.4% In 2006).
This good growth was predicted earlier this year, with estimates from the Outdoor Advertising Association of America (OAAA) revealing the medium to be outpacing all other media (see Outdoor Advertising Outpacing Other Media).
According to the OAAA, outdoor industry revenue reached $3.2 billion for the first half of 2005, enjoying a 7% increase from January to June.
| |
| UK Adspend Forecast 2006 |
| |
% Change Year on Year |
| TV |
1.2 |
| Radio |
-5.3 |
| National Newspapers |
-3.9 |
| Regional Newspapers |
-5.3 |
| Consumer Magazines |
0.6 |
| Source: OOA, February 2006 |
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