Research Shows ITV Merger May Fuel Outdoor Profits
The prospect of an increase in the cost of airtime advertising following the recent ITV merger may give a boost to outdoor revenue, according to research commissioned by Outdoor Connection.
The survey of 150 senior agency and client personnel asked for opinions on the strengths of outdoor advertising, the likelihood of the medium expanding its market share, the effect of the ITV merger and issues concerning continued growth of the medium.
Over 85% of respondents believed that the ITV merger would lead to uncertainty over negotiations with the broadcaster, which could present further opportunities to grow the outdoor medium.
In contrast only 8.8% of senior agency and client personnel that took part in the survey believed the recently completed merger of Carlton and Granada to form a single ITV posed a threat to the prosperity of outdoor advertising.
Outdoor Connection’s chief executive, Carole Kerman, said: “Overwhelmingly our respondents thought the ITV merger would help to increase outdoor’s position. ITV is likely to increase marketing of its medium and if that is accompanied with higher prices then outdoor’s cost efficiency would do well.”
She added: “Combined with what’s been happening in television and the fragmentation of the audience, that juxtaposition makes outdoor advertising a very strong option and a very strong solution. Outdoor is able to reach broadcast audiences quickly, effectively and efficiently so high cover and frequency can be achieved.”
Last week Alan James, chief executive of the Outdoor Advertising Association, suggested that outdoor advertising was on course to command a record nine percent share of the total UK advertising market when official revenue figures for 2003 are released later this month (see Outdoor Advertising Set To Claim Record Market Share).
Kerman shares that view, stating: “I think it will now comfortably, at some point this year, achieve a 10% market share and there is so much more innovation in outdoor and so much more research being conducted to understand how outdoor works. It is going to continue to attract more advertisers to use the medium, so I think it still has some way to go in terms of growth.”
Last month Clear Channel UK published a major study into the reported impact and effectiveness of non-television media, claiming current media research underestimates its power by as much as twenty percent (see Existing Research Under-Reports Non-Broadcast Media).
Outdoor Connection: 020 7307 9700 www.outdoorconnection.co.uk
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