Everyone who leaves the house is exposed to it. You don’t turn it on, tune it, search it up or turn over the page to see it, it’s just there… and it’s free. Although referred to as poster panels, or billboards, in the advertising industry they are classified as “Outdoor” and they form part of the “Display” advertising market.

You see them on the roadsides, at shopping centres, railway stations and on the Underground.

Unlike TV, radio or print, which can see the launch of new channels or publications, town planning control limits the number of potential new advertising hoardings.

As the media cannot be diluted by the sudden influx of new sites, the long-term value of Outdoor advertising is assured. With an annual spend of £1bn per year (2008) this equates to 10% of the display market by comparison to only 4.5% ten years ago. Revenues in 2009 have obviously been affected by the recession seeing a short term reduction of 19% but Q4 looks far more positive and media planning for 2010 should see revenues recover particularly with the influence of the world cup.

The Outdoor industry deserves considerable credit for investing heavily in high quality “plant” with contemporary design and servicing, the POSTAR rating system for audience impact analysis and digitally related posting validation which have all contributed significantly to attracting new advertisers and increasing audience awareness.

In the same way that the Outdoor media contractors are seeking to sell the value of Outdoor to media buyers their success will determine the rental value of media assets for the landowners. The increasing sophistication of the Outdoor media sector, with the introduction of digital displays and networks demands that landowners and their agents have a greater understanding of how the revenue they receive is generated and how to optimise their portfolio. In the majority of cases media assets form a welcome addition to the host property income stream, in some cases the income can be so great to dominate any alternative use value.

The flowchart below illustrates market structure and parties involved.

Recent Market Activity

The consolidation within the sector that has occurred over the last five years has resulted in only three national contractors which are JCDecaux, Clear Channel and Primesight. Other significant contractors are Blow Up Media, Forrest Outdoor, Ocean Outdoor, Outdoor Plus (including BPS), Plakativ and Titan but they all tend to specialise within particular sectors of the market rather than offer a national uniform product.

This consolidation limits landowners options in achieving truly competitive bids and in a weak market there needs to be an increased sensitivity in the handling any negotiations for review or renewal.

Landowners and their agents are isolated and limited access to independent market data to assist in negotiations. This is where TTP offers a distinct advantage and as property people we understand the client.