Shout Media managing director Paul Kenny says that his company’s recent acquisition of Profile Plus gives it the necessary scale to challenge what he describes as “a virtual monopoly” of the poster market in New Zealand.
Until now, the poster market has largely been dominated by Phantom Billstickers, which is run by Jim Wilson. However, the recent move by Shout Media now gives the company access to over 500 individually framed MAX A0 posters in premium locations across the three main centres.
“It’s currently a monopoly which isn’t in the best interests of advertisers and we’ll be able to provide advertisers greater choice,” Kenny says. “Our aim however is to grow the street poster market by introducing new categories of advertisers to this exciting and extremely cost-effective media.”
When viewed alongside the fancy digital screens that are popping up all over the nation, posters do seem somewhat anachronistic, but Kenny says they still have certain features that remain attractive to advertisers.
“It may seem unusual to some people to be launching a very traditional media in an outdoor market which is increasingly digital. However, street Posters have some great benefits. They’re extremely flexible – we can have a campaign in the market in 24 hours from receipt of artwork. It can also provide a platform for advertisers with smaller budgets which traditional outdoor media just can’t do. Lastly, static media does have that big advantage of not sharing with other advertisers.”
Kenny says he also saw opportunity in the poster market, because it's still largely in local hands.
“The mainstream outdoor market is dominated by large overseas companies, which leaves very little opportunity to gain a foothold in these media. Posters to me presented the best opportunity for growth in terms of competitors, council restrictions and capital expenditure."
Kenny is no stranger to the mainstream outdoor market having been one of the founding partners of iSite Media in 2000—an experience he says will serve him well as he dips his toe into the poster market.
“The billboard and poster businesses are virtually identical in terms of the process. You identify suitable sites, develop landowner relationships and have a similar council process. The advantage is it doesn’t have the extremely high capital costs like billboards, however this is of course reflected in the smaller revenue return.”
While confident of making a dent in the poster market, Kenny admits Phantom Billstickers will be a tough competitor.
“Phantom has done a great job in NZ. I can’t find a better example of street posters around the world … However, I’ve been in this position with iSite previously and I know if you provide a very good product (which we have) and quality service at realistic rates you will create market share. Our aim is to grow the street poster market, not to cannibalise the existing one.”
Kenny says he aims to win a 25 percent share of poster market within the next year (StopPress has requested data on the value of the street poster market from Nielsen).