Update on outdoor advertising

The UK out-of-home media industry took revenues of £204m between January and March this year, up 14.6% when compared with the first three months of 2009, according to figures from the Outdoor Advertising Association (OAA). The Central Office of Information (COI) was the biggest outdoor advertiser during the quarter, spending £8m, followed by McDonald’s and Sky, which each spent £3.6m, Virgin Media which spent £3.2m, and Coca-Cola which spent £3m.

Large-format roadside and small-format retail enjoyed the steepest rise in revenues, with the approach to the general election boosting political advertising. A spokesman for the OAA said a wide range of sectors grew their outdoor expenditure. The upbeat start to 2010 follows a tough period for the out-of-home sector, which saw nine consecutive quarters of revenue decline from Q4 2007. Revenue across the sector in 2009 was £782.1m, down 16.7% year on year.

Mike Baker, chief executive of the OAA, said: “It is good to see out-of-home on the rise after a tough year in 2009, where the recession dragged spending down, especially in the finance sector. Strong double-digit growth puts us back on the right track.” Outdoor’s performance compares favourably to the wider media industry. The Nielsen Company estimates total ad revenue rose 7.8% over the quarter, and radio and TV are estimated to be around 8% up year on year. Baker said: “Fourteen of the top 20 out-of-home advertisers in the quarter increased their spend year on year, so I see that as an encouraging sign of confidence in the medium.”

T&T Comment
It’s great to see that outdoor revenue is increasing and overall ad revenue is on the up. Previously revenue had dropped due to advertisers assigning more of their budgets to digital & TV.

Outdoor has proven results at supporting brands – new product launches, brand maintenance and equity. It also functions well as a supporting medium to up-weight a TV or radio campaign. In terms of measurement, it is more difficult to gage response. However when it is used in conjunction with other media we can identify spikes in traffic to a website and increased audience numbers.

Out of home advertising is an ‘on the go’ communication medium. Campaigns can be targeted by location and audience. The medium offers flexibility and creative innovation, contractors are consistently investing and developing new technology.

Tags: Media, Media planning, Outdoor Advertising, Outdoor Media