News
SCO and Shoof merger to boost outdoor media in GCC
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Outdoor advertising in the region may soon soar with the merger of two of the mega players of the industry – Stroer Concept Outdoor (SCO) and Shoof LLC.
"The two establishments have merged with equal shares and bring their distinct advantages to handle the fast-growing outdoor advertising in the region," said Vikas Jain, COO of Arab Media Group (AMG).
Shoof is AMG's outdoor advertising arm.
The merger will result in the creation of Ströer Concept Shoof, a new entity with the combined strengths, experience, technology and assets from both parent companies, making it one of the country's leading OOH media company.
The partnership will allow the formed entity to benefit from Ströer Group's experience in transit media, street furniture, a fully functional research and development team coupled with Ströer Concept's and Shoof's in-depth understanding of local markets.
Stroer Group has more than 150 contracts with various transport companies covering approximately 6,000 railway stations and 7,000 bridges in Europe. The group covers over 90 per cent of the German Transit Media Advertising
Commenting on the merger, Abdullatif Al Sayegh, CEO, AMG, said: "This merger exemplifies our commitment towards the region's OOH media industry. It is the combination of strengths, experience and expertise, which will enable us to attain and even exceed international standards. With Ströer's 142 years of experience in out-of-home media and a very impressive track record, we believe this is a step in the right direction"
"Technology and research will be the two main contributions from our German-based partners," said Aldrin Fernandes, chairman Concept Group in support of the merger. Ströer Group sells advertising displays in 12 countries, and entered the Middle East through Ströer Concept Outdoor of the UAE in September 2007.
"Our alliance with Concept Outdoor was the first step towards realising the potential of the region's OOH industry. Together with Shoof we intend to mark Ströer Concept Shoof as the region's most successful OOH media company by offering world-class street furniture design and media solutions to our clients and partners," said Udo Mueller, President and CEO of Ströer.
Outdoor advertising has grown by 18 per cent in the UAE since 2005, when it was worth $42 million (Dh154m) . It reached $61m in the year 2007, and is expected to exceed the $100m mark as it accommodates the fast-growing real estate sector.
Outdoors, however remains a small segment of the country's advertising budget, amounting to only five per cent of the total ad spend.
"This merger shall offer value addition to clients in the form of enhanced networks, pricing structures and measurability stats. We are eventually looking at expanding into the neighbouring countries and growing in the entire Middle East," said Fernandes of the future plans of the newly-formed entity.
Parc (Pan Arab Research Centre) figures put the GCC outdoor advertising spend at $205m in 2007, an year on increase of 11 per cent over the previous year when it recorded an annual ad spend of $185m.
Ströer Group offers more than 230,000 advertising faces in Germany, making it the largest supplier of out-of-home media in the country. Additionally Ströer is also No 1 in Turkey and has the distinction of being the 16-fold winner of the 'iF Award' and five-time winner of the 'red dot' design award; both awards proving Ströer's outstanding competence for public design.
AMG was founded in March 2005 and is the largest media organisation in the UAE. Its business interests include nine radio stations, three newspapers, television, online (including Emirates Business 24-7), distribution, printing, events management and outdoor advertising. Its most recent ventures are the launch of MTV Arabia, Virgin Radio, Nickelodeon Arabia and Noor Dubai TV.
Shoof LLC, founded in 2005, has within a short period built up a sizeable inventory of prestigious out-of-home media assets.
"The two establishments have merged with equal shares and bring their distinct advantages to handle the fast-growing outdoor advertising in the region," said Vikas Jain, COO of Arab Media Group (AMG).
Shoof is AMG's outdoor advertising arm.
The merger will result in the creation of Ströer Concept Shoof, a new entity with the combined strengths, experience, technology and assets from both parent companies, making it one of the country's leading OOH media company.
The partnership will allow the formed entity to benefit from Ströer Group's experience in transit media, street furniture, a fully functional research and development team coupled with Ströer Concept's and Shoof's in-depth understanding of local markets.
Stroer Group has more than 150 contracts with various transport companies covering approximately 6,000 railway stations and 7,000 bridges in Europe. The group covers over 90 per cent of the German Transit Media Advertising
Commenting on the merger, Abdullatif Al Sayegh, CEO, AMG, said: "This merger exemplifies our commitment towards the region's OOH media industry. It is the combination of strengths, experience and expertise, which will enable us to attain and even exceed international standards. With Ströer's 142 years of experience in out-of-home media and a very impressive track record, we believe this is a step in the right direction"
"Technology and research will be the two main contributions from our German-based partners," said Aldrin Fernandes, chairman Concept Group in support of the merger. Ströer Group sells advertising displays in 12 countries, and entered the Middle East through Ströer Concept Outdoor of the UAE in September 2007.
"Our alliance with Concept Outdoor was the first step towards realising the potential of the region's OOH industry. Together with Shoof we intend to mark Ströer Concept Shoof as the region's most successful OOH media company by offering world-class street furniture design and media solutions to our clients and partners," said Udo Mueller, President and CEO of Ströer.
Outdoor advertising has grown by 18 per cent in the UAE since 2005, when it was worth $42 million (Dh154m) . It reached $61m in the year 2007, and is expected to exceed the $100m mark as it accommodates the fast-growing real estate sector.
Outdoors, however remains a small segment of the country's advertising budget, amounting to only five per cent of the total ad spend.
"This merger shall offer value addition to clients in the form of enhanced networks, pricing structures and measurability stats. We are eventually looking at expanding into the neighbouring countries and growing in the entire Middle East," said Fernandes of the future plans of the newly-formed entity.
Parc (Pan Arab Research Centre) figures put the GCC outdoor advertising spend at $205m in 2007, an year on increase of 11 per cent over the previous year when it recorded an annual ad spend of $185m.
Ströer Group offers more than 230,000 advertising faces in Germany, making it the largest supplier of out-of-home media in the country. Additionally Ströer is also No 1 in Turkey and has the distinction of being the 16-fold winner of the 'iF Award' and five-time winner of the 'red dot' design award; both awards proving Ströer's outstanding competence for public design.
AMG was founded in March 2005 and is the largest media organisation in the UAE. Its business interests include nine radio stations, three newspapers, television, online (including Emirates Business 24-7), distribution, printing, events management and outdoor advertising. Its most recent ventures are the launch of MTV Arabia, Virgin Radio, Nickelodeon Arabia and Noor Dubai TV.
Shoof LLC, founded in 2005, has within a short period built up a sizeable inventory of prestigious out-of-home media assets.