Media News

After years of growth, it is perhaps not surprising that the Out of Home sector has experienced an unwelcome jolt in 2009. The OAA (Outdoor Advertising Association) has announced that gross revenue for the first quarter of 2009 was £178,363,142 – a 19.3% decrease on the same period in 2008.

The sectors reliance on categories such as Finance, Telecomms and Motors – with each category posting a considerable drop in marketing spend – meant that out of home was always going to have a challenging year. However, spend across Entertainment and Media clients increased significantly, helping to stave off further losses in the sector as a whole.

As such, the Out of Home marketplace has been unpredictable on a month by month basis. Contractors have been showing a willing degree of flexibility in reacting to this volatility, and whilst they have been increasingly holding inventory for longer in periods of high demand, short term one week deals have become more readily available.

It’s no secret that large roadside formats have generally struggled throughout 2009, prompting this switch to these shorter posting cycles and more production inclusive deals. However, the picture isn’t universally gloomy – with the buoyant transport formats (particularly bus panels) holding up remarkably well.

There has also been a trend for advertisers who previously bought fully national campaigns to increasingly look at city-focused campaigns using quality sheetage to minimize wastage. Digital formats are therefore performing well and have seen an increase in spend throughout the first quarter of 2009. With advertisers continuing to cherry pick specific sites, there looks to be a move,on large roadside formats at least, for fewer panels but of higher quality in years to come.

Primesight’s acquisition of Titan’s roadside portfolio should also be welcomed – giving them a strong foothold to compete against JC Decaux and Clear Channel and complimenting their strong mega 6 portfolio.

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