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09.12.09

Ströer outperformer of the year

2009 projection indicates a pre-tax growth rate of 14 percent for out-of-home advertising / Ströer generates more than 80 percent of sales with out-of-home mix campaigns

Ströer, Stroer, Stroeer, Out-of-Home Media, Outdoor Advertising, Poster, Jan Hardorp

Based on the accounts status of Ströer, market leader for Out-of-Home advertising, we are able to make an early announcement of the result for 2009. The media promoter has added the available entries for November and December to the figures of the Nielsen statistics for January through October (poster + 12.8%), concluding that the entire Out-of-Home advertising field can expect a plus of more than 14 percent compared to the previous year. Ströer also expects net sales results to be near the previous year’s results.

The main reason for this success is the growing acceptance of Out-of-Home advertising as a medium with a reliably calculable level of effectiveness. Following consolidation, Out-of-Home advertising has been on the growth track for a while (advertising market share in October 09: 4.5 %, + 0.7 % compared to the previous year). The improved position is the result of optimized sales and marketing structures and of the investment in the quality of the medium and its key planning figures.

Moreover, the significance of Out-of-Home advertising is increasing, because, unlike other media, out-of-home does not compete for media usage. Instead, it is influenced by the positive mobility development, which is the "viewer rating" of Out-of-Home advertising. (The latest study “Mobilität in Deutschland” (Mobility in Germany) shows the growing mobility of all target groups). This makes the medium immune to the growing fragmentation of media channels.

The growth rates for usage of the medium during the first 10 months come from different industries. This shows just how lasting this trend is. According to the Nielsen statistics for October, the main increases came from telecommunication (+49.5 %), tourism (+55,.3 %), retail (+24 %), automotive (+17.6 %), and the FMCG segments of cleaning products (+30 %) and food (+9,.1 %) all compared to the previous year.

Looking at the different Out-of-Home media, the popularity of backlit media is still on the rise. Mega-Lights, Ströer’s backlit large format, grew by 23.6 percent in 2009. Hamburg was the location of this year's biggest investment in advertising media. Customers like the new quality of the backlit columns (Premium City-Light-Posters) in the city. A sales increase of more than 40 percent across all advertising media in Hamburg proves the positive effect of the medium on overall sales. Another trend are digital advertising media, such as passenger television and Infoscreen. Ströer Infoscreen, market leader for digital media, achieved a double-digit plus in sales for 2009. The regional media market is dominated by large formats (+3%), benefiting from the falling reach of daily newspaper with regard to younger readers.

A very interesting fact: While advertisers used to focus their campaign plans on certain groups of advertising media, customers with significant budgets now show a definite preference for format-mix campaigns. Ströer now generates only 18 percent of total sales from so-called mono-format bookers. Ströer’s newly developed tool "Out-of-Home Navigator” supports agencies in their strategies by offering help with the selection and combination of Out-of-Home advertising media.

Jan Hardorp, Manager Ströer Media Germany, says: “Since 2006, we have been able to convince relevant advertisers to begin with Out-of-Home. The special option of comparing locations makes it easy to examine the ROI of our medium. In 2009, some customers took action and initiated lasting budget shifts. If you have to sell every day, you need Out-of-Home advertising.”

The trend of combining brands with a sales impulse will continue in 2010. The combination of reach, e.g. through media such as Mega-Lights, and brand presentations, e.g. at train stations, will continue to be popular.

 

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Please contact:
Stefanie Roßner
Assistant Head of Corporate Communications
Ströer Allee 1
50999 Köln
Tel.: 02236 . 96 45-283
Fax: 02236 . 96 45-6283