The Thomas Partnership: FAQs
The following information provides invaluable market information and valuation insight. If there is any other general information you require you can e-mail requesting a personal response to info@thethomaspartnership.com.
Outdoor Advertising
The media market categorizes advertising hoardings as 'Outdoor', part of 'Display' advertising. Turnover for the year 2004 was in excess of £847 million, up on the previous year by7.8%.
Panels are sold on a bi-monthly basis either:
- Line by Line - individually selected sites
- Campaign Packages - arranged by poster specialists or in contractor selected packages, either nationally or by TV region
- By target audience - delivering reach (percentage of audience contact) and frequency (number of viewing occasions)
Advertising Hoarding Contractors
Advertising hoarding contractors operate by taking Licenses from landowners allowing them to erect and maintain advertising hoarding structures on their property. In return the Licensor is paid a license fee.
The relationship between the Advertiser and the landowner is as follows:
Advertiser
Advertising Agency/Media Independent
Poster Specialist
Outdoor Media Owner
(Hoarding Contractor)
Landowners Agent
(For example: The Thomas Partnership)
Landowner
Site Brokers
Know who you are dealing with!
Brokers are not agents. They are principals acting in their own best interests by holding contracts directly with landowners which are then sold-on to bona fide contractors at a higher figure than that which the landowner receives thereby releasing a 'profit rent' which is retained. An alternative phrase associated with brokers is a 'selling or sales agreement'.
It’s common sense. If each party is extracting value from the same asset less is available for the landowner. And its not just the profit rent that brokers make, many contracts are sold for capital premiums without the landowner gaining any benefit.
Whilst initially what they offer can appear superficially attractive the landowner will fail to realise their assets full worth. Companies that regularly act, or have acted as site brokers, include Barrett Petrie Sutcliffe (BPS), Posters Limited (& Unlimited), Invision (Invison Concepts) and many others usually ex-employees of contractors. If in doubt e-mail us for clarification at info@thethomaspartnership.com or if you have an existing contract with a site broker use our on-line valuation service to discover it’s true value.
Sizes
The 'Outdoor' advertising market defines the size of advertising hoardings by reference to the number of 'Sheets' used to form the final visual display are of the advertisement. This term originates from the historical Crown printing press which has now been superseded by modern technology. For example, a 48 sheet did originally comprise of forty eight individual pieces but now is made up of only twelve. Click here for sizes.
Valuation Principles
It is a common misunderstanding that there is an average value of each advertising site. In truth, the perceived value of any given advertising site may vary considerably between individual contractors and, therefore, the proportion of income available to be paid to the landowner. This is due to the fact that each contractor has to manage their portfolio of sites to their greatest benefit and not to the specific benefit of any given landowner.
A detailed site analysis is essential to determine either the true value of any existing display or to identify the most valuable potential display. It should be noted that value does not relate directly to size nor is a cash flow analysis a valid valuation technique as sites are sold in packages and, therefore, the figures available are not appropriate.
Town Planning
The current planning regime is under substantial revue with the imminent publication of a new set of regulations, scheduled for late spring/summer 2006. This site will be updated when the changes are publicised. For the time being the , however, the statues and supporting planning are:
- The Town and Country (Control of Advertisements) Regulations 1992, as amended.
- Planning Policy Guidance Note 19
- Circular 5/92
- Circular 15/94
Conclusion
As can be seen, the complexities and cross market influences of property and media which effect the landowners interests now dictate, more than ever, that landowners and their agents/advisors obtain professional expert advice in the development and management of advertising rights.