OOH Ad Spend to Hit £1bn in 2014

Suzy Young, director at Warc, forecasts consistent growth throughout the rest of the year and into 2015, despite a 2.2% dip in expenditure in Q1 2014, compared with the same period a year ago. Annual growth in the OOH sector is predicted to grow by 2.7% in 2014, reaching a total of £1,017m. As OOH spend in the sector is predicted to surpass the £1bn mark for the first time, further estimations suggest growth will increase further to 5.9% in 2015, totalling £1,077m in expenditure.

As illustrated by the graph below, the OOH sector has shown consistently positive results, recording year-on-year growth in all but four of the last 31 years.

 

 

Source: AA/Warc Expenditure Report.

The London Olympics in 2012 provided a significant boost to OOH ads, and according to YouGov research, 62% of visitors to the Games were aware of outdoor advertising related to the event. The sector’s ongoing success can be attributed to the 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, growing from a 1.4% share of spend in 2003 to a 21.6% share in 2013.

 

Source: AA/Warc Expenditure Report

Mike Baker, CEO at the Outdoor Media Centre, stated:

“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. 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, Birmingham and Glasgow and Cardiff.”

According to the Route research carried out by the Outdoor Media Centre, 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.

 

Source: Route, Outdoor Media Centre; AA/Warc

 

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