— Let's talk about OOH results 2015. How can you assess the outgoing year comparing its beginning and the end of the year?
— By the end of 2015 networks occupancy has increased on average by 6 % in comparison with the last year. Selling price of a plane has increased: from 10 to 20% depending on business model and sales policy of each operator. However, we can't talk about profits for operators of outdoor advertising because the costs have also increased. At the beginning of 2015 the amount on utility bills has increased, the same situation was with fuel prices, glue prices, etc. Operators, especially those who have hired a technical team, revised the cost of installation and service works.
In February 2015 the situation was very difficult. January-February — the months are not indicative in terms of employment, but in terms of expectations from customers. Because of sharp jump in the exchange rate, economic uncertainty the mood among advertisers was rather wary.
But gradually the market began to revive. In March we saw that advertisers were ready to invest in outdoor advertising. That proves the fact that our media is a channel of effective communication. The industry continued system development. Outdoor advertising Association of Ukraine created Database of legal advertising media aimed at minimizing such negative for the industry factor as illegal advertising ad carriers. I know that many people use this tool and verify the legality of the inventory for their campaigns.
Seasonal networks occupancy. Source — Doors Consulting. January-December.2014; January-November 2015
— Are there any changes in the TOP categories of advertisers?
— Leaders have not changed. Most significantly reduced the volume of purchases in the category "Vehicles" (-10 % in 2015 in comparison with the number of planes in 2014), “Mass media” (-20 %), "Alcoholic drinks" (-29 %), included beer. The reduction of "Vehicle" was inevitable, because the excise on cars has not decreased, and their cost is often tied to the currency. Beer brands have reduced their investment in Out-Of-Home for reasons of changes in the advertising legislation.
Increase was in the category "Entertainment" (+45 %), “Real Estate” (+40 %) and "Construction and repair" (+25 %). Advertisers have shown their confidence in outdoor advertising, spending their money for OOH in spite of crisis. The Industrial Committee of outdoor advertising was doing everything possible to raise awareness among advertisers about the specifics and benefits of outdoor advertising.
Control of measurement and market research by ICOA is of great importance, too. In 2015 the Technical Committee of ICOA controlled both waves of passenger traffic measurements and told advertisers how the audience of outdoor advertising is measured. ICOA announced the training module on the introduction of TRP indicators in Researcher's software.
— By the way, what with TRP, when this indicator will be included in the program of the Researcher?
— In February 2016 will be held the final part of the test module with TRP. Work on its implementation was fundamental, it took more time than it was expected, but we can guarantee a quality result. The first result, received in the fall, was not satisfactory for the Technical Committee, we continued to refine the module together with the market Researcher.
— In what mood is the industry completing the year, what are your forecasts for the next year?
In 2016 we expect growth of the market and increase of budgets in OOH by 10%. We expect an increase in the cost of outdoor advertising. Of course, the price will depend on business model of each operator, but you can expect that the average price in 2016 will grow by 10-12 % in comparison with 2015. It's difficult to talk about networks occupancy now, but operators have expectations that it will grow by 7-8 % in comparison with this year.
— What Technical Committee of ICOA is going to do in the coming year?
— Technical Committee will revise Tender brief for future researcher of the market. Yes, we will be preparing for the tender to seek new and modern solutions in the OOH planning and OOH measurements that will be relevant to the whole market.
Technical Committee will work closely with companies, not members of ICOA, attracting them to modern decisions in the OOH planning and OOH measurements. This work aimed at improving the interaction of outdoor advertising with other media.
