‘That’s where we’ll cap out’: JCDecaux Australia CEO weighs in on future of out of home sector
As the digital age continues to evolve, the CEO of JCDecaux Australia believes it won’t ever completely take over the out of home (OOH) sector.
Appearing on a new episode of Mumbrella’s one-on-one podcast series, Steve O’Connor said like most industries, digital has hugely impacted OOH, but it is at a “tipping point”.
“Our view is that [digital advertising] will get above 80%, but probably not much more than that because there is a number of advertisers out there who still want to occupy a sign – 24/7 – and not share it with anyone else,” he explained.
“And there’s also a need for outdoor to play a role in terms of that point of sale. So, directional signs, as we call it – McDonald’s around the corner, two kilometers etc – that will always be static. And I think also one of the reasons why that digitalisation is becoming so prolific is that a lot of the old sites that aren’t worthy of being digitised are being rationalised and all the good sites are being digitised.
“So that’s forcing the issue a little bit in terms of the consolidation of digital.”
O’Connor said the one format of OOH that can not be digitised yet is bus and tram advertising and, in his view, that will always be the sticking point.
“Transit will become the only campaign or static medium down the track and everything else will be done digitally, other than things like directional signage… and beyond advertisers who may want to buy a sign and have it permanently as a 24 by seven proposition for themselves.
“It’s getting to the point where I think digitisation will get to 80% and I think that’s pretty much where we’ll cap out.”
Listen to the full podcast with O’Connor here.
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Neil Griffiths is the Managing Editor of Mumbrella. He joined the company in October 2023.
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