Outdoor revenues grow 12.4% in third quarter

A bumper spend from BSkyB helped outdoor revenues grow 12.4% year on year to £212.2m in the third quarter of 2010, according to figures from the Outdoor Advertising Association.

Outdoor: revenues boosted to £212.2m in third quarter
Outdoor: revenues boosted to £212.2m in third quarter

Revenues were bolstered by increased spend across of number of categories including retail, motor, food, finance and computers. Sky was the biggest outdoor advertiser during the quarter, spending £11.1m through specialist IPM.

Total outdoor revenue during the third quarter was up slightly, 0.3%, when compared to the period April to June 2010.

David McEvoy, marketing director of JCDecaux, said: "An increase of 12.4% is a fantastic achievement. We’ve seen rises across all environments, with roadside showing particularly strong growth, driven by major advertisers such as Sky and Marks & Spencer investing in premium outdoor sites."

The roadside sector increased its share of overall spend to 52.4%, up from 51.9% in the third quarter of 2009, and 50.8% in the second quarter of 2010.

Roadside revenues were up 13.5% year on year. Transport revenues, including buses and the London Underground, was up 11.1% year on year, and point of sale revenues, such as sites in shopping malls, was up 11.6% year on year.

Naren Patel, chief executive of Primesight, said the figures showed that "advertiser confidence is still increasing".

He said: "It is good to see that largest sector – the roadside sector – is significantly up, with roadside billboards leading the way.

"This is due to the work and investment from ourselves, Clear Channel and Decaux, where we have removed poor-quality sheetage and invested in the best stock. There are now 20% fewer billboards than two years ago in a market that is up over 25% this year, meaning that demand is booming. In outdoor, big is beautiful."

Digital revenue during the quarter was £23.8m, up 61.8% year on year, but down 14.3% from the second quarter. Digital now accounts for 11% of outdoor revenue, down from 12.8% in Q2.

Mike Baker, chief executive of the OAA, said: "This quarter sees the continuation of outdoor’s strong recovery in 2010. Seventy-five of the top 100 spenders have increased their spend this quarter, which is a heartening sign.

"We continue to regain advertiser confidence and outdoor’s share of display spending is once again heading towards the 10 per cent threshold."

More detailed revenue information by format is available in the figures from the Council members of the OAA, the "big four" of JCDecaux, CBS Outdoor, Clear Channel and Primesight.

The biggest revenue rises by format for the big four were in 96-sheets, up 36.2% year on year, and non-digital special builds, up 30.6% year on year.

The OAA is the trade body for the outdoor industry and its 30 members account for more than 95% of outdoor media expenditure in the UK.

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