MEDIA TRACK: Innovation is accelerating the outdoor ad boom but demand may soon level off

After a slump during the first six months of 1999, outdoor advertising is back on track, with the latest estimates reflecting a boom in the industry.

After a slump during the first six months of 1999, outdoor

advertising is back on track, with the latest estimates reflecting a

boom in the industry.



Optimedia’s latest report predicts an 8 per cent growth during 2000 -

double the rate in 1999 and 3 per cent higher than that predicted for

total ad revenue.



There are a number of reasons for an about-turn in the industry. First,

the influx of dotcom ads, which increased revenue across the board last

year. At the same time, the major agencies have introduced a number of

innovations.



Last week, More Group announced plans to introduce two outdoor formats,

one of which -scrolling 48-sheets - will bring daypart advertising to

the UK, allowing clients to choose the time of day their ad is

shown.



TDI recently introduced a division solely for non-standard ads. Such

diversity will be complemented by improved production technology,

lowering the medium’s entry costs.



Diversity has been a major factor in the increased growth of the

medium.



As agencies exploit the richness of the outdoor market, new formats are

attracting new categories of advertiser. In 1977 just two product

categories - tobacco and drinks manufacturers - comprised 68 per cent of

the outdoor market. In 1999, a total of ten categories made up 75 per

cent of revenue, according to figures from MMS Outdoor.



Taking all these factors into account, Optimedia expects the outdoor

market to flourish over the coming months. Ambient media and six-sheets

will continue their expansion and outdoor is expected to take pounds 605

million during 2000.



However, Optimedia believes the boom may be short-lived, predicting that

after dramatic growth during 2000, demand for the medium will begin to

level off. A plateau in the growth of outdoor will be reached as the

six-sheet and ambient markets reach saturation point and traffic begins

to wane with the growth of home shopping.





MediaTel’s database is available at www.mediatel.co.uk. For more

information contact 020-7439 7575 or e-mail info@mediatel.co.uk.



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