Office of Fair Trading begins market study of outdoor advertising
The Office of Fair Trading (OFT) has begun a study into outdoor advertising which is set to focus on both the structure and competition within the sector.
The study will look at the payment of commissions by outdoor media owners to specialist buyers and examine how these affect the incentives of those buyers.
The OFT will also look to consider potential issues with contracts between local authorities and outdoor media owners, with some contracts containing clauses which prevent local authorities from dealing with other outdoor media owners or advertisers which it believes maybe to the detriment of local authorities and public spend.
Heather Clayton, senior director of Infrastructure, explained: "The cost of all forms of advertising is reflected in the price consumers pay for goods and services. This market study into outdoor advertising will take a look at whether the market works well in terms of offering firms and local authorities deals that are fair, competitive and transparent.”
The project is expected to last three months, with the study expected to be completed by December 2010.