OOH industry bounces back with 24% media revenue growth in 2021
The out of home (OOH) industry is back on track to reach pre-pandemic results, with the Outdoor Media Association (OMA) reporting a 24% increase on net media revenue for 2021, at $812.7 million, up from $655.2 million in 2020.
While the numbers are yet to match 2019 figures, down 17.3% on the reported $982.3 million recorded for that year, this years growth offers hope for outdoor advertisers as they recover from the effects of the pandemic.
The fourth quarter of 2021 saw an increase of 13.3% on media revenue year on year, with $247.6 million, up from $218.6 million for quarter four in 2020. Digital OOH (DOOF) revue accounted for 58.8% of the total net media revenue in the year to date, an increase from the 55.2% recorded in the previous year.
OMA CEO Charmaine Moldrich said, “We began the year cautiously optimistic for industry recovery, and while the second wave of lockdowns mid-May stymied momentum, revenue consistently tracked above 2020 levels. What’s more, December’s results mark the first month since revenue has risen beyond pre-pandemic levels, up seven per cent from December 2019.”
“We’ve taken this time as an industry to bolster our platforms and processes to make Out of Home easier to plan and buy campaigns and measure their impact. Launched on 31 January, MOVE 1.5 and our Industry standards provide a world-first for buyers.”
“And, importantly, with the OMA and MOVE attracting new members with the addition of Scentre Group, Tonic Media Network, and Hivestack this month, this means we now represent close to 100 per cent of the industry in Australia,” continued Moldrich.
Australian advertising spend saw 18% growth in 2021, and is expected to grow by a further 5% in 2022, according to figures release by Zenith. ANZ-Roy Morgan Consumer Confidence reported a drop of 2.4 points in the first week of January, down to 106.0. However, confidence in future financial conditions remained unchanged with 38% of Australians expecting to be financially ‘better off’ this time next year.
Moldrich added: “What this shows is people are still optimistic about the future, and this sets us up for another bounce back when the situation stabilises further. This is good news, and advertisers should be confident in Out of Home’s ability to deliver audiences particularly in transport, retail and roadside environments and continue to leverage the channel’s impact and creative potential.”
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