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UK Adspend Growth at Three-Year High

Advertising spend in the UK grew at its fastest rate for three years in the second quarter of this year.
Figures released by the Advertising Association/Warc show adspend increased by 8.5 per cent year on year to reach £4.5 billion for the second quarter of 2014.
Across the first half of 2014, total UK adspend rose by 6.3 per cent year on year. This has led to a 0.4 per cent upward revision for the full year forecast to 6.4 per cent for 2014, but a 0.2 per cent downward revision to 6.5 per cent for 2015.
OOH spend is expected to rise by 3.4 per cent by the end of the year, while 2015 is predicted to increase by 5.5 per cent.

Tim Lefroy, chief executive at the AA, said: “Growth at twice the rate of UK GDP is quite a headline, but the real story is of digital and creative leadership in e-commerce.
“As the Eurozone wobbles, it’s a reminder that our consumer economy is central to the UK’s economic narrative.”
Via: Campaign

Real World October 2014

The Real World covers information about consumer behaviour and inspiring ways to use OOH, as well as recent industry news and the latest on the OOH marketplace.
Please click here to read it.

Out of Home Adspend Forecast to Exceed £1bn in 2014

In the final part of MediaTel’s series looking in detail at the latest UK adspend forecasts, Suzy Young, data and journals director at Warc, exmaines how new digital technology is accelerating growth for the out of home sector.
In Q1 2014, out of home advertising expenditure dipped 2.2% compared with the same period a year ago, according to the latest data released in the Advertising Association/Warc Expenditure Report this week. But this is expected to be just a temporary blip, and Warc forecast consistent growth throughout the rest of the year and into 2015.
Warc predict annual growth in the out of home sector of 2.7% in 2014, reaching a total of £1,017m. This is the first time the sector will have surpassed the £1bn mark. The pace of annual growth is expected to accelerate to 5.9% in 2015, or £1,077m.
In recent years the out of home sector has performed consistently well, recording year-on-year growth in all but four of the last 31 years, with these dips occurring in line with the total ad market, following economic recessions and the dotcom crash in 2001.
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Note: Outdoor Media Centre; AA/Warc. Source: AA/Warc Expenditure Report.
The London Olympics in 2012 provided a significant boost to out of home ads in particular, with spend rising 25.4% year-on-year in Q3 2012 and helping the annual total increase by a strong 9.5%.
According to YouGov research, 62% of visitors to the Games were aware of outdoor advertising related to the event. Consequently, the AA/Warc had initially forecast a drop in adspend for 2013 given the lack of a similar event, but out of home maintained its upward trajectory to register growth of 2.0%.
One of the key reasons for this success is the sector’s rapid adoption of new digital technology. As the chart shows, digital’s share of total out of home advertising expenditure has grown significantly over the last 11 years – when the traditional vs. digital formats were first tracked. Digital adspend has grown from a 1.4% share of adspend in 2003 to a 21.6% share in 2013.
Mike Baker, CEO at the Outdoor Media Centre, said: “In 2013, outdoor beat expectations, growing 2% over the spectacular Olympic year. What’s behind the continued growth? Digital is the main driver, with consistent investment by media owners into high profile sites such as Clear Channel’s Storm panels on Cromwell Road and Outdoor Plus’ Vauxhall Cross.
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Note: Outdoor Media Centre; AA/Warc. Source: AA/Warc Expenditure Report.
“Importantly, the footprint of digital has expanded geographically, including JCDecaux’s Trinity Leeds, Mediaco’s Citylive sites in Manchester, as well as new sites in Newcastle (Ocean), Birmingham (Signature) and Glasgow (Forrest) and Cardiff (blowUP).
“Advertisers continue to find a place for outdoor on their schedules, and the number of million-pound clients now stands at 159. Route, our audience measurement system, now covers just about all the environments.”
According to the Route research carried out by the Outdoor Media Centre (and also published in topline form as part of the Expenditure Report), roadside panels accounted for 28.4% of all out of home panels monitored in March this year (372,818 panels). The next biggest formats were tube carriage interiors at 24.4% and bus panels at 18.1%, as detailed in the chart below.
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Source: Route, Outdoor Media Centre; AA/Warc.
Via: MediaTel

OOH Q1 2014 Revenue Figures Released

EIGHT QUARTERS OF THE LAST TEN HAVE SHOWN GROWTH
QUARTER 1 DECLINES 2.2% TO £206.8M
TRANSPORT AND RETAIL ENVIRONMENTS BOTH UP
DIGITAL UP 10% TO £47.4M

The Outdoor Media Centre (OMC), the trade body for outdoor media owners, today announces total revenues for January to March 2014.
For the quarter, the headline total reported across all outdoor is £206.8m, which represents a decline of 2.2% year on year. Digital revenues amounted to £47.4m, up 10% year on year to record its biggest ever Quarter One. Digital accounted for 23% of the total.
Mike Baker, CEO of the Outdoor Media Centre comments:
“It’s been a mixed quarter, with two environments up and one down. Revenues in the transport and retail/leisure sectors both moved ahead, but this was offset by a decline in the roadside market. Even within roadside, however, the small format 6 sheet component was up substantially. We have now seen growth in eight out of the last ten quarters, so the momentum is with outdoor as more advertisers find a need for strong creative imagery strategically placed in the active space where 88% of shopping still takes place.”
Categories which spent significantly more in the quarter on outdoor than last year include drink, clothing, computers, food, electronics, finance, and government. The top 10 advertisers in the quarter according to Nielsen were  British Sky Broadcasting, ITV, Lloyds Bank, Twentieth Century Fox, Department Of Health, Kentucky Fried Chicken, Vodafone, McDonald’s, EE, and Unilever.
The importance of outdoor was underscored by the WARC Expenditure forecast published today, which reported that, of the major media, only internet, TV and outdoor showed growth in 2013.
Via: OMC