Outdoor advertising breathes deep

Johannesburg - Out-of-home advertising has not been hit as hard as expected by the recession, according to the executive director of Out of Home Media SA (Ohmsa) Les Holley.

"We're down just 3%, which is better than other sectors."

The head of the trade association said that the recession did not lead to cancellations per se but rather a shift in business. Smaller areas lost out as the focus rested squarely on those areas offering the most coverage. The main players such as Primedia, INM Outdoor and others performed better by virtue of their reach.

This brought up the question of how the on-again, off-again sale of INM would impact on the industry. "It's not really an issue," he said. "If you look at its history, none of the takeovers have harmed it, if anything they have helped in its growth." That said, Holley wouldn't be drawn out on the out-of-home giant's future but said new investors brought more investment in such areas.

INM Outdoor's future was unknown as its struggling parent company Independent sought to sell it to raise much needed cash to pay off its enormous bond and bank debt. According to Business Report, the sale amounting to R1.1bn was expected to happen with a London-based private equity group but was blocked by its second largest shareholder Denis O'Brien.

Controlling about 45% of the market, the company should be a big beneficiary come 2010 as the World Cup was expected to be a boon for the industry. Holley expected an upward shift for March and April next year as business attempted to capitalise on the tournament.

Fifa Organising Committee (FOC) marketing and commercial officer, Derek Carstens earlier revealed that outdoor advertising would play a major role in Fifa's strategy. Holley added that the increased focus on the platform would not just be limited to those directly connected to the contest. "Companies will be looking to use the opportunity to promote themselves as much as they can during this period."

- Fin24.com