New Growth for Outdoor Advertising

07Oct12

Out-of-home advertising has seen a 3% increase since the beginning of the year and an anticipated 4.6% by 2016.  It is one of the only growing advertising areas other than internet.  This marketing sector has also had its fair share of consolidation, and there are many different opinions whether this is a good move or not.  Many investors see this as a great opportunity for companies to absorb smaller niche companies that are carving into the market, while some are concerned that this will result in a price hike for advertisers.

The CEO of Outdoor Media Association, Richard Herring, says, “It’s been an aim of the major outdoor players to consolidate the business more. I’m not surprised by it. It’s a good thing and it improves the industry as a whole. Having fewer players provides the ability to have better and more investment in the industry and makes it easier for clients to deal with. It’s a very complex buying and selling arrangement with outdoor, so less parts to deal with is easier for clients, and it should mean they have better assets at their disposal.”

About the imminent sale of Eye Corp to Champ Private Equity, the new owners of Ooh!Media, Church says: “Up until this point they have been competing and have been able to give two viewpoints on reaching people in the shopping mall. If this goes through, then just having one major player in that place will make it very difficult for media buyers because there will be a lack of competition.”

I thought this article was interesting because it pointed out an important point from Mark’s book, Media Work, that the buyers are calling the shots instead of the creatives (pp.118).  The article never talked about the creatives of those agencies when comparing the pros and cons of consolidation. I did think it was interesting that there has been an increase in outdoor advertising.  We are always hearing about Facebook ads, and all the problems they are having with smart phone advertising, so it is interesting to me that there has been an increase in an older form of advertising.

Clark, Lucy. “Outdoor’s New Era” http://www.bandt.com.au/features/outdoor-s-new-era

Deuze, Mark.  Media Work. Polity 2007.

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