The digital OOH sector had a particularly good quarter, with a revenue increase of 19% year- on-year to £151m, representing a full 50% of total Q3 OOH revenue. This is coupled with a reduced rate of decline in classic OOH advertising (non-digital, such as six-sheet units and banners) – at just -2.4% the smallest drop this year. For a detailed breakdown of OOH revenue figures, visit the Outsmart website.
Continued investment now means a more widespread distribution of digital screens. According to Route, the OOH analytics organisation, while classic OOH platforms reach 98% of the nation every week on average, digital screens are now reaching 63% of adults aged 15+ in Great Britain – an increase of 50% in the last year. In the larger cities, the digital coverage is much higher - for example 94% in Greater London, 78% in Edinburgh, 85% in Glasgow, 89% in Birmingham and 93% in Leeds. Find out more on the Route website.
The wider advertising industry is enjoying a growth trend, with the Advertising Association reporting this summer that the first half of 2018 saw revenues grow by 7.2% year-on-year, to £11.4bn. Of this, the OOH sector has increased its share from 1.5% in 2017 to a predicted 3.3% this full year.
However, amidst all this optimism, Stephen Woodford, Chief Executive at the Advertising Association sounded a note of caution:
“Spend on advertising is showing real strength and resilience especially at a time of some uncertainty for UK business. We know advertising has a positive effect on the economy, with £1 spent generating £6 for UK GDP, so it is encouraging to see the strongest Q2 and H1 results since 2014.
“While we welcome these figures, we are also conscious that our upgraded predictions for 2018 and 2019 depend on getting the right deal from Brexit negotiations and clarity on what the future will look like.
“We must also ensure that the unique features that have made the UK the global hub for our industry, such as access to the best and brightest creative talent from across the world, are prioritised as we leave the EU.”