A row has erupted in outdoor advertising after media giant Global decided to implement a print production gateway for the sites it controls.
Global Media & Entertainment Group lays claim to being the largest radio and outdoor company in the UK and Europe. Postal Totes
The group controls more than 253,000 outdoor advertising sites across the UK and, crucially, is the incumbent partner managing all the ad sites on the Transport for London (TFL) rail, underground and bus network.
Global’s decision to partner with Delta Group as its exclusive print partner has caused consternation at other print suppliers, and at specialist media agencies that are used to being able to choose where they have their jobs printed.
Due to the nature of the businesses involved – with a relatively select number of firms affected and the need to continue dealing with Global, especially for the TFL sites – print and agency bosses spoke to Printweek under condition of anonymity.
Global has pitched the changes as offering a raft of benefits including reduced errors, improved sustainability and logistics, and economies of scale.
A Global spokesperson told Printweek: “We regularly review systems, processes and suppliers to ensure we are delivering the best service for our clients, partners and advertisers as well as looking for the most innovative and sustainable products and practises.”
Printweek understands that buses are the first environment where Global will take full responsibility for print provision, including a proposed switch from printed self-adhesive vinyl mounted onto Correx panels that are then reused, to directly printing onto Correx, which will then be recycled – apparently Global’s initial plans to somehow reuse or reprint onto the panels seem to have fallen by the wayside.
An industry source commented: “Whereas vinyl would be two or three pallets, because of its thickness the same job on Correx will be 24 or 26 pallets.”
A source close to the situation also told Printweek: “People in the know in print know it doesn’t add up.
“This has been foisted upon us. Global will make a load of money and wrap it up as sustainability and logistics and improved product, but it’s not. I’m not convinced.”
Although Global has pitched the benefits as including economies of scale, a price matrix seen by Printweek involves big increases in the pricing for some items, with print experts saying that the increases are above what would be involved because of increased substrate costs. A raft of other prices, such as for posters, appear to be unchanged.
“The price is now being dictated by Global, where previously there was an active market,” the source added.
“Some agencies will spend tens of millions of pounds with them on media. Never before has it been a dictatorial thing.”
Printweek also understands that complaints have been made to the Competition & Markets Authority and to the Institute of Practitioners in Advertising, claiming restrictive practice.
Global’s planned timeline for the changes involve it taking responsibility for the printing of all Global classic campaigns, across its network, from early next year.
Sources said the TFL contract comes up for renewal next year, with a new contract likely to be in place for 2025.
Global had sales of nearly £682m in the year to 31 March 2022, of which £290.7m related to its Outdoor business.
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