The price of aerial advertising is rising due to volatile aviation fuel costs and rising demand.
Los Angeles, CA (PRWEB) August 17, 2014
Aerial advertising has a buyer power score of 2.9 out of 5. This score reflects a buyer's low to moderate ability to negotiate lower prices due largely to the high number of suppliers and standardized nature of aerial advertising, according to IBISWorld research analyst Jordan Weinstein. “However, recent demand growth and price fluctuations for aviation fuel over the past three years have slightly reduced buyer negotiating power.”
The economic recovery following the recession fueled growth in consumer spending, which led to growth in both corporate profit and total advertising expenditure. These increases have spurred demand growth for aerial advertising during the three years to 2014. Aerial advertising allows companies to reach a massive audience through a cost-effective means, leading to steady demand for the service. “Growth in demand recently has indirectly driven up prices for aerial advertising at a moderate rate,” says Weinstein. “Additionally, the cost of aviation fuel has been and will continue to be extremely volatile in the years to come, which creates price fluctuations for aerial advertising services.” The rise in demand and price for aerial advertising services has slightly reduced buyer negotiating power.
Despite the increase in demand for aerial advertising, slower growth in the prices of key inputs and intensifying competition will not lead to significant price increases over the next three years. Although prices are increasing overall, aerial advertising is still one of the most cost-effective advertising methods to reach a large audience. Furthermore, suppliers facing heavy pricing pressure from competition will limit price increases to appeal to buyers. Current suppliers include Massivemedia Inc., Paramount Air Service, Van Wagner Communications and AirSign Aerial Advertising. For more information, visit IBISWorld’s Aerial Advertising procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of aerial advertising make informed purchasing decisions. Aerial advertising is when a large display is towed behind an aircraft over a geographic area, but can also include skywriting and blimps. However, this report will mainly focus on towing displays behind aircraft. Suppliers design large aerial displays and fly them in a specified location during a particular time to reach a mass target audience.
Recent Price Trend
Product Life Cycle
Total Cost of Ownership
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Market Share Concentration
Buying Lead Time
Key RFP Elements
Buyer Power Factors
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