As an out of home advertising company we naturally keep an eye on key developments within the industry so that we can adapt our product if necessary. A recent study noted that the out of home advertising market had seen an increase in revenue of 20% in August with a date to the year increase of a substantial 18%. This is encouraging as does it prove that the market is growing steadily and give us real hope for the future of our favourite advertising channel.
As we read more of the report we noticed that the out of home advertising industry had reported a net revenue of £46.7 million for the month of August. Staggering right? This was a 20% increase from August 2015 which boasted a revenue of £38.9 million this time last year! Additionally, the 18% date-to-year increase that we just mentioned equated to an increase of £56 million to £362 million up from £306 million the previous year.
These figures are all well and good and you can crunch numbers all day to show your industry in a favourable light so we rounded up some more key factors to put things into perspective.
We focus on the digital side of things with our digital advertising vans and our main focus is providing a unique out of home advertising experience based on our innovative advertising model. Subsequently, digital out of home advertising figures are the ones that we are most interested in as they relate directly to our product and of that £46.7 million OOH advertising revenue that we mentioned above a massive 38.5% of that revenue is based on digital OOH. That’s an increase of 13.9% for the same period last year.
The overall out of home advertising revenue for 2016 can be split into four categories:
- Roadside Billboards (above and below 25sqm) – £17.6 million.
- Roadside Other (taxis, buses, trams, street etc.) – £13.8 million.
- Further Transport (including airports) – £8.3 million.
- Lifestyle, Retail & Others (shopping centre, office media, digital screens, café panels etc.) – £7 million.
When we break it down into these different categories and take into account that 38.5% of these revenues are all digital, then it really does emphasise the continuing impact that digital OOH is having on the industry, especially when you take into consideration that a year ago the revenue stood at just 24.6%! Overall it gives us food for thought and if this level of growth continues we can see nothing but positives for out of home digital advertising in 2017.