Jonathan Lewis returns to outdoor by buying Admedia with ex-MediaCom CEO

Jonathan Lewis, the former boss of Outdoor Plus, and Stephen Allan, the former global chief executive of MediaCom, confirmed their investment to Campaign after Companies House filings showed they are directors of MSA Advertising, which has bought a stake of more than 75% in Admedia from Jonathan Naggar, who retains a minority stake.

Lewis and Allan said there was a big opportunity to increase Admedia’s revenues from its estate of about 140 motorway service locations because of a number of factors: digitisation of its largely analogue ad inventory, more experiential marketing, greater customer and vehicle data, and the electrification of cars as people will need to stop for longer to recharge them.

“I see this as taking a mature and fairly conservative business and putting some rocket fuel in it,” Lewis said, adding that motorway services areas were attractive for advertisers. â€śThere’s a captive audience that’s hard to get, that’s been media starved for two hours, with big dwell time [that will grow as electric vehicles become the norm].”

The plan will be to rapidly transform the inventory to digital

Lewis, who has become chief executive of Admedia, knows the company well as he was a non-executive chairman and director of the media owner in the past. 

He founded Outdoor Plus in 2006 and digitised much of its estate. He sold a stake to private equity in 2016 and then the whole business to Global in 2018, before exiting in February 2020.

Allan is an agency heavyweight who worked at MediaCom and its predecessor, The Media Business, for nearly four decades before stepping down from the WPP media shop in June 2020. He has become an adviser to Admedia and a director of MSA Advertising – his first notable industry move since leaving WPP.

Allan, who was a director of MediaCom Outdoor and The Poster Business in his old job, said: “What really excites me is I’ve always been a big fan of out of home, particularly digital out of home, because it is has got so many utilities and ways in which it can be used.

“DOOH is becoming more precise and you can do many more things with it with data,” he said, citing vehicle number plate recognition as an example. â€śWith capital expenditure, the plan will be to rapidly transform the inventory to digital and when you combine that with the data that is being collected, you get something really interesting.”

Admedia’s existing estate is a mix of around 1,300 six-sheet posters and screens and 6,000 washroom panels, plus about 50 large-format digital screens in and around the motorway service area â€“ with around eight million weekly visitors.

Lewis acknowledged that some critics have described washroom panels as “toilet media”, but he pointed out that it could still be a good place for some brands to advertise because it offers a “private moment” and is divided by gender.

Motorway service areas have also moved on a lot from the days when they served â€śegg and chips” and now attract a lot of major brands such as Costa Coffee, Marks & Spencer, McDonald’s Waitrose & Partners and WHSmith which operate retail outlets, he noted.

The pandemic has also led to more private car usage and “staycationing”, rather than holidaying abroad, according to Allan. 

Looking to the future, they said experiential marketing – for example, letting consumers try out a product or service – “is going to be a key part of the offering” as dwell time increases because of electric cars. 

Combining display advertising, experiential and data

Naggar, who set up Admedia in 1995, said it was a good time to sell to Lewis: “I’ve been able to take the business to a certain stage and I’ve got a big digital roll-out ready to go and he’s got the rocket fuel to turn that into a reality.

“It’s been a long journey, building up the business over the years with two great managing directors, Mick Tedder and Phil Daniel, and the rest of the team. Jon has bought into not only the business but also the team.”

Industry observers claimed the price tag for Admedia could have been as high as ÂŁ25m, although some of those directly involved dismissed that number as inaccurate. Lewis, Allan and Naggar all declined to comment.

“This is not about what we paid for it, it’s about what we create from it,” Lewis said.

Asked if he was looking to create another Outdoor Plus, he said: “I don’t think I’m looking to replicate anything. This is a business in its own right that makes sense.

“What I didn’t want to do is traditional roadside. The market is already populated by four significant players [Global, JCDecaux, Clear Channel and Ocean Outdoor] and I didn’t think I could make a difference and be relevant and stand out. For me, it’s not Outdoor Plus part II. It’s Admedia part II.”

Further acquisitions are not yet on the agenda. “Sat here today, probably not,” he said. “We got a big job to do. If we transform this business successfully, we could either look at motorway services aboard or other environments where the combination of display, experiential and data can be properly merged for the advertiser’s benefit.”

It is understood that Lewis, Allan and Naggar are the largest shareholders. The other investors are also private individuals.

This article appeared in Campaign on August 11, 2021

Servicing the Half Term Traveller

Although the weather is still quite warm and the children seem to have only just gone back to school, October half term is only a few weeks away!

With families using this valued time off as an opportunity for a holiday, short break or activity, the UK’s roads will definitely be super busy – in fact, 67% of families on the road will stop at a Motorway Services on their way to an October half term trip!

This means that our 136 Motorway Services that cover the length and breadth of the country will be packed with adults and children looking for a washroom break, an opportunity to stretch their legs and something to eat and drink to keep them going on the onward journey.

That’s not all they’ll be looking out for, however – our bespoke Family Research told us that 72% of families on the road don’t have a set list of activities in mind before they set off, so many will be looking for inspiration too. This could be a local attraction such as a theme park or zoo, or maybe the latest movie for those rainier days.

With this in mind, Admedia offers a plethora of advertising solutions which are perfect to capture family travellers with a variety of needs.

Nexus, the UK’s largest external network of full-motion large-format digital screens, is perfect for a multitude of opportunities – this could range from running a trailer for a new movie, to using dynamic activation technology to advertise local attractions depending on the weather.

With 6 Sheets covering the vehicular and pedestrian routes around the Motorway Services site, there is the ability to influence impulse snacking travellers heading towards the shops, while those visitors needing a comfort break can’t miss the high dwell time, 100% gender targeted A3 Washroom Panels that can offer much more detailed information and increased interaction.

Families using Motorway Services are 105% more likely to go on a holiday/break this October than the average family, according to YouGov. Brands who have already connected with the family audience at Motorway Services included the Blue Planet Aquarium, Eden Project and Sky.

To connect your own clients with this audience, contact us here for more information.

Sources: YouGov Profiles / Admedia Family Research