City councils to lose out on 2010 ad revenue

"We have seen no indication that the laws restricting the growth of outdoor advertising in this country being relaxed, in fact, there is a possibility that these laws will become stricter. This will directly restrict the amount of foreign investment that South Africa should enjoy as a result of being the host country," says Krog.

Every time a country wins the rights to host an international sporting event, such as the 2010 Soccer World Cup, the advertising industry is a buzz with new ideas to capture the lucrative tourist market. New outdoor advertising opportunities are identified and foreign investment into the country increases dramatically in the period leading up to the event and during the event.

Community benefits

During the All Africa Games in 2000, a number of outdoor companies, particularly Clear Channel Independent (or Corpcom at the time) and Primedia Outdoor were awarded the rights to place advertising structures in areas previously not earmarked for this purpose.

This may have caused a stir among Sandton residents and the like, but one has to bear the benefits to the community at large in mind when considering the value of such structures. As a direct result of the revenue generated by the All Africa Games' new billboard rights, the All Africa Games Village was built in Alexandra in the east of Sandton, which later became much-needed housing to the residents of Alexandra.

With outdoor advertising companies being allowed to charge a premium for the new advertising sites that could be used, allowing an influx of foreign investment, imagine the use the additional funds could be put to: more housing, better public transport, more policing and road upgrades are just a few of the opportunities that come to mind.

No more sites

Current advertisers on large format outdoor advertising structures sign long-term contracts with outdoor media owners in order to secure these high valued advertising sites for extended periods of time, as they are a rare commodity. This means that there are no more sites for foreign advertisers to enjoy during the Soccer World Cup.

Edward Voster, founder of Ad Outpost, comments, "Isn't it time that city councils and media owners discuss rights being granted before 2010 in order to raise the bar to that of a first world country, especially since visitors to any country are exposed to outdoor advertising more than any other medium on offer?"