APAC to see faster OOH growth via-a-vis developed markets: SpendEdge
By M4G Bureau - October 23, 2017
The procurement intelligence advisory firm advocates a service-based model to buyers that offers scope for value-based discounts due to the bundling of services, which can reduce the spending on individual service purchases
UK-based procurement intelligence advisory firm SpendEdge in its ‘Outdoor Advertising Services Procurement Market Research Report’ states that Asia-Pacific region (APAC) is expected to exhibit a higher growth rate than the developed nations due to rising urbanisation and construction boom, which are providing immense opportunities to the global outdoor advertising services market.
Volume-based pricing is the most adopted pricing model in the outdoor advertising services market as buyers can select many panels or billboards to advertise content for the specified duration. However, projection overruns can result in buyers paying extra, which is expected to lead to the rise in popularity of the service-based model. The service-based model offers scope for value-based discounts due to the bundling of services, which can reduce the spending on individual service purchases.
The report notes that category managers need to ensure that the suppliers that they engage with are equipped with advanced technologies such as the use of QR codes, AR, and interactive kiosks, which provide immense opportunities to advertisers.
Buyers too need to plan well in advance to obtain prime slots to obtain discounts and manage the high costs associated with booking outdoor spaces.
The report provides a strategic analysis of the supply markets, factors influencing purchasing decisions, procurement best practices, pricing models, supplier landscape, and an analysis of the supplier capability matrix of the marketing industry.
The report also breaks down the data and analysis behind the procurement of outdoor advertising services and acts as an all-inclusive guide for making smart purchasing decisions.
“The outdoor advertising services market is experiencing strong growth due to increasing urbanisation, resulting in customer mobility and development of public infrastructure,” said lead SpendEdge procurement analyst Angad Singh in a release. “Brands are exploiting this expansive growth by creating compelling, curated content to connect better with customers,” added Angad.