MEDIA & MARKETING:Bus sides and shelters are formats that work well - but large hoardings are in decline, writes
SIOBHÁN O'CONNELL
WHETHER IT'S a Harry Potter wraparound on the Luas, a Surf- branded trolley in baggage reclaim or ads for Smarties on the floors of Dart carriages, outdoor advertising is everywhere. It proved to be one of the most resilient advertising formats last year.
Although spend in the sector was down by just 4 per cent in 2010, actual ad spend on outdoor formats is 25 per cent off its peak in 2008.
Most of the outdoor advertising spend goes through four players - Bravo Outdoor, Clear Channel, JC Decaux and CBS Outdoor - via specialist intermediaries PML and Kinetic, which buy the ad space on behalf of advertising agencies.
Clear Channel has the contract for bus shelter sites, while JC Decaux has the largest private holding of 48 sheet poster sites and also controls 72 new ad kiosks in Dublin city centre. These were sanctioned by city planners in exchange for the French firm establishing the Dublin Bikes civic bicycle rental service.
CBS Outdoor has the largest portfolio of retail formats in the country, as well as the contract for Croke Park and Aircoach.
Having recently secured the €40 million three-year contract to handle all CIÉ's outdoor advertising services, Bravo Outdoor claims to be the biggest player in the market with a share of about 33 per cent, just edging ahead of Clear Channel with 32 per cent, JC Decaux with 26 per cent and CBS Outdoor with 10 per cent.
Clear Channel's chief executive Terry Buckley says prospects for 2011 are hard to call. "January looks good and we will get a bounce from the general election. In 2010, entertainment and cosmetic companies were big advertisers. Finance and cars also came back in a big way."
James Barry, chief executive with Bravo Outdoor, says the outdoor formats performing best through the downturn are bus sides and bus shelters.
"Ad avoidance is a huge issue for advertisers on television," Barry says. "The advantage of outdoor advertising is that it cannot be turned off. However, spend on 48-sheet sites is down by about 20 per cent."
Large advertising hoardings, known in the trade as "48 sheets", have long been the mainstay of the outdoor sector, but this aspect of outdoor advertising is in decline. Planners hate them and it is virtually impossible to secure planning permission to erect a new 48-sheet site. These large poster sites have also been a casualty of the national motorway programme. The more towns that are bypassed, the less traffic there is past 48-sheet sites in the towns.
"The billboard business is under pressure, particularly outside Dublin, and it is something the industry has to face up to," Buckley says. "There is still a market for them, but they are not commanding the same prices. The planners in Ireland are among the strictest in Europe. We are always trying to lobby them, but it is difficult."
With a limited supply, outdoor sites are being made to work harder through the use of technology. This week, CBS Outdoor is announcing the rollout of a suite of new digital ad screens in Dundrum Town Centre.
CBS Outdoor's managing director Colin Leahy says: "It's a significant investment for our company, but we are taking a long- term view of how important digital formats will be for outdoor advertising."
So-called ambient media, where ads are sold on everything from the back of supermarket till receipts to beer mats, is prospering, according to Emma Daly, senior account manager in ad agency Mindshare.
"Demand for point-of-sale formats was strong in 2010. Investment from the likes of VHI, Specsavers and Ulster Bank has seen the market cope well through the last 12 months.
"A combination of a greater number of retail deals being communicated and a desire from advertisers for increased tactical positioning at point of sale has driven a strong demand for purchase-point six sheets and some of the smaller ambient formats," Daly adds.
Planners can't interfere with bus-side advertising and Bravo Outdoor now sells space on 1,000 buses, compared to 600 in 2005. James Barry says Bravo is talking to Dublin Bus about new formats.
"In America, digital bus sides have been trialled with GPS enabled ads. That means that in time, Donnybrook Fair in Donnybrook could be able to buy an ad advertising lunch offers just on the buses passing their shop between 10am and 12pm."
Looking ahead this year, Daly says: "2010 saw some excellent deals being rolled out, but did see a shift away from the short-term, last-minute offers which dominated 2009. This has been partly led by advertisers recognising the value of quality sites over sheer volume.
"However, media owners have also been more reluctant to make the offers, opting to reward larger campaigns and advance bookings with run on and bonus instead. This trend again looks set to continue as the market settles into the new economic reality.
"Demand will again be extremely strong in 2011 for retail and events, particularly in the run-up to the Europa League final [ at Lansdowne Road stadium]."
