SPH expands into out-of-home advertising - Sep 03, 2005 (BT)

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The Straits Times / The Business Times News On SPH

SPH expands into out-of-home advertising

Sep 03, 2005
The Business Times

SINGAPORE Press Holdings is all geared up to spread its wings in the 'out-of-home' advertising arena.

To spearhead its drive into this new platform - which will focus on motion and static media advertising as well as events management - the media group has formed a subsidiary SPH MediaBoxOffice Pte Ltd (SPH MBO).

SPH owns 80 per cent of SPH MBO, with the remaining 20 per cent owned by IBIZ Asia Distribution, the investment holding company that owns MediaBox Office Pte Ltd (MBO).

MBO, with which SPH has completed its deal, is Singapore's largest LED network media company.

Under the deal, SPH MBO will take over MBO's island-wide network of LEDs and plasma screens, in prime sites such as Caltex House and the HDB Hub in Toa Payoh. SPH MBO will also hold exclusive marketing rights for events to be held at such high-traffic locations.

'Venturing into the out-of-home advertising market will allow us to offer more options with integrated marketing solutions to our clients, leveraging on newspapers, magazines, Internet, radio and outdoor advertising,' said SPH chief executive Alan Chan.

'We see this as an excellent opportunity to extend our reach beyond the core newspaper and magazine businesses. SPH MBO will build on the success of MBO to deliver the best outdoor advertising options for advertisers.'

SPH said that there has been a growing interest in out-of-home advertising as it offers innovative ways to maximise brand visibility and ratchet up exposure. It helps advertisers to take their message to key audience in an environment where it is more likely to be noticed.

Outdoor advertising has been growing strong in recent years and has been projected to grow at about 8 per cent a year in Singapore for the next three to five years.

'The group is confident that this new venture will enhance SPH's position as the leading media company in the region,' said Mr Chan.

The new SPH subsidiary will be headed by executive director James Heng, who has vast experience in newspaper advertising, Internet, mobile telephony and TV.

Supporting him will be two founding members of MBO - Simon Choo as CEO (China) and Steven Choo as CEO (Singapore). Mr Heng continues to hold his current post as head of the marketing division's new media department in SPH.

SPH head of marketing, Leslie Fong, said that the new venture is a signal that SPH wants to be more than a newspaper company. 'We are going beyond print and would like to leverage on our brand name as well as our marketing strength and experience to offer advertisers unrivalled reach across all available platforms.'