Out of home ad revenue on the increase
Industry body the Outdoor Media Association has reported that the sector saw a double figure percentage jump in revenue in the final months of 2010.
The announcement:
The Out-of-Home industry ended the year posting a healthy 19% increase on net revenue year-to-date of $77 million, up from $400 million in 2009 to $477 million in 2010.
Net revenue for the last quarter, September to December was up by 18%, $149 million compared to $126 million in 2009. These buoyant revenue results add to the strong year experienced by the industry. In February 2010 it launched its Audience Measurement System MOVE (Measurement of Outdoor Visibility and Exposure) providing accountability and transparency to advertisers. In September the industry also launched a major econometric research project, OUTSMART, which proved the medium’s ability to deliver outstanding Return on Investment.
The 19% growth in 2010 represents not just the recovery from the Global Financial Crisis; it also represents market growth of 5% when compared to 2008 figures when the industry was at its peak following a six year growth period that saw it increase revenue by a massive 74% from 2002 to 2008. Part of the industry’s growth, despite the 2009 downturn, can be attributed to investment in growing its inventory.
Charmaine Moldrich, who joined as CEO in March 2010, said, “Last year was an exceptional year for the industry. After 5 years and a $10 million investment, we launched our Audience Measurement System, which has been embraced by the media buyers and advertisers.”
“Getting MOVE to market was a herculean task and a major achievement for the industry. Last year’s close to $80 million revenue growth, following the downturn in 2009, makes for an optimistic outlook for 2011.”
“OOH is poised for future growth, we are a cost efficient way of reaching audiences, we now have an Audience Measurement System that is used widely. Our research proves the worth of our industry to advertisers and we are engaged across Australia with various communities and charities. It certainly is a very exciting time to be part of the industry and we are all looking forward to the challenges and opportunities ahead of us this year.”
All categories across the sector have performed well in 2010.
• Roadside Billboards (over and under 25 square metres) $167.4 million
• Roadside Other (street furniture, taxis, bus/tram externals, small format) $175.4 million
• Transport (including airports) $66 million
• Retail $68.6 million
Source: Outdoor Media Association press release
