Top Story


Home >> Out-of-home >> Article

International: Boom times hit billboard industry; even broadcasters are big buyers of OOH

Font Size   16
International: Boom times hit billboard industry; even broadcasters are big buyers of OOH

Want a billboard for Christmas? Better hurry, they’re almost gone. Advertisers’ concerns about the fragmentation of TV audiences and the tuning out of broadcast messages have driven demand for out-of-home inventory to levels unseen since the halcyon dot-com days of the late ’90s.

Tighter market than ever

“It’s certainly tighter than it has been, but you know, the economy’s tighter than it’s been as well,” said Jack Sullivan, director of out-of-home media for Publicis Groupe's Starcom USA. Other media buyers agreed that they were seeing a growing number of marketers add outdoor to their media mixes, or increase existing spending in the area.

Chicago, Los Angeles and San Francisco are more or less sold out through the end of the year, although there remains room in Atlanta, Boston, New York and Philadelphia. Some buyers worry sites are getting picked over – and say it’s not unusual for them to be booking locations into the middle of 2006.

The one mass medium left

The market’s strength is largely credited to advertiers’ worries about the growing inefficiency of the broadcast-TV market – outdoor companies often market their offering as the one remaining mass medium. It seems to be working: According to the latest figures, the first half of the year notched 9 per cent outdoor growth, according to TNS Media Intelligence; Nielsen Monitor-Plus reports a 6.9 per cent rise.

To be sure, the current run on outdoor inventory isn’t enough to significantly alter pricing, like the out-of-home boom in 1999, when most inventory was selling at rate-card prices as opposed to the typical 25 per cent discount. But it is causing buyers to book desirable locations earlier – which means marketers often have to plan their out-of-home before TV.

Consider: An advertiser can likely buy commercial time with a few days’ notice on TV, but a traditional out-of-home buy requires at least 60 days’ notice. “If clients come to us two months in advance, it’s hard to deliver what they want,” said Eric Niemeyer, associate media director for Omnicom Group’s Outdoor Media Group in Los Angeles.

Non-traditional practices

Much of the current growth is also being fueled by the increase in non-traditional out-of-home practices. Cinema advertising, for example, grew a booming 23 per cent last year, according to the Cinema Advertising Council, and, said Sullivan, “there’s a huge request on anything new – Bluetooth, events, bars, schools, cinema.”

“It starts with the continual erosion of TV,” said John Connolly, Senior Vice-President of out-of-home media at WPP Group’s MediaCom. “You’ve got clients going back to agencies saying, ‘Stop selling me the same old 90/10 [mix of TV to other media] and start getting creative with my media planning and spending.’”

Traditional out-of-home prices vary between $1.50 and $5 for the cost per thousand (CPM) consumers while network-TV CPMs run about $25.

Even TV snaps up the real estate

But it’s TV networks themselves hogging the out-of-home real estate, using billboards, posters, transit and nontraditional tactics to tout their new fall schedules. It’s hard to put a figure on how much more the networks are using out of home, but sellers indicate they’ve seen an increase in the past several years – both in dollars spent and in the number of shows.

“They need to expand the audience – they can’t just self-promote… on their own networks,” said Jodi Senese, Executive Vice-President of Marketing for Viacom Outdoor. Networks also typically load up on out of home in markets such as Chicago, New York and Los Angeles as a signal to their advertisers they’re actively promoting the shows.

Nielsen readies research results

The strength of the medium is expected to continue as media researcher Nielsen readies the results of its first outdoor-measurement trial. The trial, which took place in Chicago, marries demographics to the government traffic counts the industry currently uses and is expected to be an integral part of a new out-of-home measurement system, along with a “likelihood to see” index.



Our typical marketing budget is usually 10 per cent of the topline spend

There are some forces impacting the way our business works. The IT/ITeS sector has changed tremendously. Platforms like Twitter have made everyone journalists. Smartphones have made everyone a photographer. The trend that we are seeing is one of hyperdigitalization, which is causing the lines between product and services to blur. For example, <a href=

The OOH sector is among the fastest growing, globally. Brands and marketers have realized its potential and impact and begun to craft medium-specific adverts. Self-regulation is not only necessary but also essential to growth of the sector. The industry needs to exercise a certain level of this self-restraint to prove its commitment to maintaining the best standards in advertising.

<b>Clients are looking for experiential solutions beyond radio or print: Abraham Thomas, Radio City 91.1 FM</b><br><br> From entering new markets to launching large format events, Radio City 91.1FM has been on a roll. The radio channel recently announced the launch of India’s biggest singing talent hunt-Radio City Super Singer Season 8. Earlier this year, the channel set up its own creative-cum...

The interesting animated rap music video encapsulates Droom’s ecosystem tools and their role in facilitating second-hand automobile transactions

Perfumes are invisible and these new ads from Skinn create a story out of this

New campaign aims at first-time users by providing ‘first-night free’ – a first-ever offering by the brand on online hotels booking