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A bit on the side
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The trailer advertising market, established some years ago, hasn't grown as quickly as expected. So what are the business opportunities for operators?
Words: Chris Tindall
It doesn't require a huge leap of the imagination to see the potential of every lorry in your fleet as a moving billboard with space that advertisers would be willing to pay you to use.
CM has reported numerous times on the financial opportunities available to hauliers willing to publicise a brand and make some money in the process. For some, it has been an effective revenue-earner, but the use of trailers as billboards has not taken off in the way many in the market hoped it would at the turn of the century Trailer advertising remains a niche market used by a small number of advertisers basing their sales expectations on traditional methods for getting the message across. Many still rely on advertising statistics produced by media agencies comfortable only with the results of using static billboards.
Moving times
Jonathan Bramley set up truck advertising agency In Your Space in 1999. He is effectively the middleman between haulier and advertiser, and his business turns over "several million poundswith offices in 13 countries. Bramley says he expects to help his truck portfolio, which includes C&H (Hauliers) and Culina Logistics (see panel), cam more than "i100,000 this year". So it seems there are haulage companies in existence earning good money out of this venture. But Brantley points out: "The UK has the most sophisticated outdoor advertising landscape. There are billboards, taxis, buses. But it's very competitive, and trucks are still niche. Truck space is not an easy sell [to advertisers], since it's less established. A media agency is generally quite conservative."
To make the medium more appealing, In Your Space has invested £200,000 in a framing system called Traxx that attaches to trailer sides and enables adverts to slide in and out relatively easily, rather than rely on vinyl transfers or stickers. The investment is considerable, but Bramley is enthusiastic about truck adverts and optimistic that the market will grow. "I am a huge believer in truck media," he says. "I think interest will continue to double this year; last year, we had campaigns in 12 countries. "There are still opportunities out there for fleet operators to make money," he continues, "but you have to remember it doesn't matter if [truck operators] are all open to advertising. The market is governed by the companies spending money on advertising. On the haulage side, we are just happy to be working with the best fleets. There are more fleets than there are advertisers, but we are looking for more rigid vehicles at the moment."
Niche appeal
Bramley's opinion that the truck advertising market is still niche tallies with figures from the Outdoor Advertising Association (OAA), which collates statistics on the revenue generated by companies involved in selling advertising on billboards, buses, taxis, public transport and trucks. A spokesman says truck advertising made around Lim in 2007. That's £200,000 more than in 2006, but £250,000 down on 2005. The total outdoor media market, incidentally, was around £976m in the UK in 2007.
The OAA spokesman describes the truck advertising sector as "very volatile", adding that because there are only a handful of companies doing what Bramley's firm does, it doesn't take much to affect the figures.
RoadAds, another company that helps hauliers make the most of advertising on lorries, broadly agrees with In Your Space's thoughts about the market. But managing partner Tom Shrager has a different view about media agencies being unsure of the benefits of truck advertising. "They are saying the concept works," he claims. "Advertisers are constantly looking for new and innovative ways to reach motorists, whether it's on a high street or on a motorway. I'm not saying we are running 50 campaigns a month, though!"
Variable rates
The amount of money a haulier with an average-size fleet can make is not easy to establish. CM has reported rates of anything between £100 to £250 a month per trailer, depending on the nature of the campaign and its lifespan.
Shrager says only that the money made from a threemonth campaign involving a fleet of between 50 and 150 vehicles is -substantial-. He adds: -Each deal is slightly different. I can't go into details. For a haulier that can deliver a campaign, they will make money" He confirmed it's more than it was two years ago, too.
What about companies with small fleets? Is it worth their while advertising other businesses' products? -If they are targeting central London, yes. They are 100% valuable to us," says Shrager.
He does admit, however, that the truck advertising market hasn't grown quite as much as he had hoped, but insists the industry's value of Dm is nevertheless substantial. "The spectrum of clients hasn't grown, that's the thing," he points out. "I think trucks have a place — they have a value." Shrager says any haulage boss or transport manager harbouring concerns over technical issues such as downtime or being messed around by creative agencies need not be worried. "It's all prepped to work around the haulier," he explains. "Whatever fits in with them and their downtime. Hauliers are our partners — they are delivering the advert. We can't mess with that. We have to work with them."
So it would seem there is money to be made, but at the moment, it is limited and coming from a handful of advertisers, largely from industries such as insurance and motoring who are themselves targeting specific potential customers. But wouldn't it be financially more lucrative for a haulage company to bypass the middleman and speak to advertisers directly?
"There are lots of reasons why not," says In Your Space's Jonathan Bramley. "First, an advertising client knows about advertising and a haulier knows about haulage. They don't even speak the same language.
"Second, the client isn't the main contact. The advertising agency is, and they want to deal with another media specialist. It's rare for hauliers to deal directly with clients, and then it's only where the haulier is moving the product being advertised."
Holding on
Agripa's patented frame-and-mesh system is designed for high-sided vehicles. It's a method that offers minimal downtime to apply, and doesn't affect fuel economy once it's in place.
Sales director Mark Hendry says the firm originally tried to convince advertisers of the benefits of using trailers for publicity, but concentrates now on fleet management instead.
Approaching companies with their own truck fleets and discussing their clients' advertising requirements has proved a more lucrative method.
Agripa has also been successful in encouraging local authorities to use its system on bin lorries for such issues as recycling campaigns (see panel), voting, noise pollution and health. Hendry doesn't expect the sector to grow in the short term, though. While other outdoor media advertising can be 'measured' for its effectiveness in reaching various public targets, there is no independent organisation auditing specifically lorry advertising. "There's no thirdparty accountability," he points out. "If you buy into any other medium, there's accountability. But with this, it's a different ballgame. You can estimate its impact and create your own model, but it's still only your own model."
Interestingly he reveals that while some media agencies still need encouragement, various haulage companies understand the business opportunity when tendering for work: -There's an added benefit to the client," he explains. "Logistics companies can buy our system and use it as added value.
For example, DHL could say to a potential customer that it can provide a flexible advertising system, so the client could rebrand free of charge once a year and include that in the costs. There is an opportunity to make motley•