Market Overview

Since 1998 revenues from large format advertising spend had grown by 73% and in 2007 had reached £975.8 million. In 2008 the advertising spend was £938.6 million (Source: www.oaa.org.uk), this represented a year on year decrease of 3.8%.

Within the large format advertising market there are three main sectors; roadside, transport and ambient media.

The greatest income producing large format roadside advertising sites are:

  • Close to busy roads
  • In industrial and commercial areas
  • At an angle, not parallel, to busy roads

Whilst it has traditionally been estimated that over 85% of advertising sites across all of these sectors are undervalued by landlords in the current marketplace rents are being reduced and fewer sites are being developed by the major advertising contractors. However MP&P are still very keen to acquire appropriate sites and offer a very fair commercial deal to landlords.

Planning is the biggest challenge facing all large format advertising contractors and a strategic approach must be taken to increase the chances of getting planning approved.

Large format advertising is very popular with advertisers for a large number of reasons, including:

  1. It is unavoidable, nearly everybody who leaves their house is exposed to it and it doesn’t require consumers to tune in or turn it on;
  2. It is consumer friendly, engaging and impactful and it isn’t considered as unwanted as other
    media often is;
  3. As people are out and about more often an ever increasing number of people are seeing
    outdoor advertising;
  4. The quality of large format advertising structures are being improved as more creative designs are created and operators increase their investment in their hoardings.

Rarely do advertisers or their agencies buy advertising space on large format advertising hoardings directly from advertising contractors. In most instances the services of a poster buying specialist are used. These companies advise brands and advertisers on their buying strategy and the merits of buying packages of sites and individual sites.

Panels are generally sold on a fortnightly basis.