News

OOH industry grew 1.5% last year despite a persistently weak market

The out of home industry grew its net media revenue 1.5% in 2019 to $935.5m, against 2018’s $921.6m, in the face of an extremely tough year for the wider industry.

Quarter four, however, dipped 2.3% to $269.9m, compared with the previous year’s $276.3m. The quarter was soft across the market, with the Standard Media Index’s (SMI) latest numbers reporting an 11% decline in November. The expected pre-Christmas boom failed to materialise, marking the 15th consecutive month of decline for ad spend.

However, OOH has been flagged as a bright spot in a weak market, experiencing its 10th consecutive year of growth thanks to 2019’s modest, but still positive, result.

“Last year marked our tenth consecutive year of growth – reflecting advertiser trust in the channel and investment into a data-driven digital network,” the Outdoor Media Association’s CEO, Charmaine Moldrich, said.

“Out of Home has proven to be a true broadcast medium and plays an ever more important role in the community, as seen with OMA members’ support for the bushfire appeal.”

Digital out of home revenue accounts for 55.8% of total net media revenue for the year-to-date, up from 52% for the same period last year.

Moldrich acknowledged the end of 2019 impacted the industry’s overall result, but remained positive about its value and advantage.

“The latter part of 2019 was a challenge for the advertising industry as a whole. We are pleased that Out of Home maintained its position as one of a few growing media channels,” she said.

“Out of Home has the advantage of being ‘always-on’ and plays an essential role in the media mix. Our relative stability in a difficult market environment reflects our inherent value to advertisers.”

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