Benchvertising

1. INDUSTRY ANALYSIS

1. Description        

OOH (out of home) advertising is first advertising media that has existed. Out of door advertising is any type of advertising that reaches consumer while they are out of home. The major categories are billboards and street furniture located in the city, main roads, pedestrian areas, shopping malls and parking lots. Billboards are the biggest category of OOH advertising and presents huge advertisement to passing drivers and pedestrians. These advertisement are designed to catch a person’s attention and create memorable impression. Although there has been significant growt in digital billboards displays traditional billboards are still predominant form of outdoor advertising and the biggest category of OOH advertising.  Street furniture is a collective term for object of equipment installed on the streets and road for the purpose of advertising. It includes benches, bus stops, kiosks, citylights etc. Street furniture are positioned within close proximity to pedestrians and shopers in the eye level. By its nature, this advertising media has a large power to inform because it simply cannot be avoided. All other communication channels can be shut down, closed or ignored while outdoor advertising is a part of environment and send message seamlessly. In BiH we don’t have information about OOH size in the overall market spending, but it is believed that it accounts for 10 to 14% of total budget. In our market leading OOH buyers still come from trading, telecommunication, finance, car industry and politics while in west countries and USA majority of OOH advertisements promote local business.

1. Size/growt

Urbanization, digital outdoor advertising and global economic development are major factors that encourage outdoor advertisement market. Additional factors such as low-cost inovative medium, digital trends and improved audience measurement, are further encouraging global market.

The industry’s growth and its promising future are supported by these fundamentals;

• Mobility of consumers efficiency of OOH
• Efficieny of OOH advertising which delivers impression at much lower costs per thousand compared to other media
• Innovation boosting the value of OOH advertisement
• Fragmentation of other media has made OOH even more reliant

The outdoor advertising industry in BiH is represented by approximately 30 companies in terms of size. There are two  companies;

• Europlakat with 65% of the market share
• Metromedia with 20% of the market share
• Infomediagroup with 5% of the market share
• Totalmedia with 5%
• Other 5%

As an industry, outdoor advertising in BiH is comparatively small, with, According to estimates, BiH advertising market is worth 70 million euros, while in Croatia, the market value is 800 million. According to Media Market there are more than 5000 OOH sites nation wide in BiH. It is anticipated that the industry will continually to show strong growth with increasing urbanisation of the population and demand from marketers who are beginning to realise that outdoor is the most effective medium for reaching the audience.