German firm buys 60pc stake in Concept Outdoor
The acquisition of a 60 per cent stake in Dubai-based Concept Outdoor by Stroer, the largest outdoor advertising company in Germany, signals a new era for the outdoor advertising market in the UAE, as it will bring in their global expertise and a whole new range of innovative product lines.
"The region will play a very important role for us to expand our operations further into other emerging markets," Dr Matthias Rumpelhardt, CEO, Stroer Media International GmbH, told The Business Weekly.
"We will offer our expertise in marketing, technology and service to the joint venture as we see this region as one of the fastest growing in the world," Rumpelhardt said.
"Dubai seemed a perfect platform to launch our regional foray. It is neck to neck with the global dynamics and well poised as a perfect gateway between the east and the west. From here, we intend extending our footprint to other countries in the region," he added.
Asked what were the immediate plans of the company in the region, Rumpelhardt said, "There is a major tender by the Roads Transport Authority (RTA) for its metro project and we are one of the bidders. We will bring in our best products to try and win these tenders."
The UAE outdoor advertising market today is very fragmented with around 25 to 30 players having a small share, said Aldrin Fernandes, CEO, Concept Group.
"With the entry of Ströer in the market, we will see more international global players wanting to come in, and in the coming one to two years we will see consolidation taking place in the sector," he said.
"With consumerism on the rise, out-of-home media offers many exciting opportunities for the advertiser to send its message in an interesting manner to its audiences. Tie-up with a company like Stroer is a perfect answer to our quest for excellence," he added.
The new company, to be called Stroer Concept Outdoor, is targeting to achieve a 30 per cent market share in the coming three to five years, he said.By Vinod Kumar PK
© The Business Weekly 2007
