Impressive growth for out-of-home revenue, static format steady

  • Advertising
  • February 21, 2018
  • StopPress Team
Impressive growth for out-of-home revenue, static format steady

Out-of-home revenue grew 18 percent for 2017 and static remains strong, according to the latest report from the Outdoor Media Association of New Zealand (OMANZ).

Surpassing $120 million for the calendar year, out-of-home's 2017 revenue was just over double that of 2012, which had revenue of $58.9 million. Last year's result was also up from $103 million in 2016.

The growth is has been contributed to by November 2017 seeing the highest revenue month ever, as it reached $12.3 million. This is alongside Q4 2017 being the highest quarter revenue ever recorded at just over $36 million, a jump from $34.4 million in Q4 2016.

When revenue was reported in July last year, digital accounted for more than 40 percent of out-of-home revenue, and this continues as static formats accounted for 54 percent of the total year to date revenue, around $65 million. The figures are based on OMANZ members only who account for around 87 percent of the total out-of-home advertising revenue.

Derek Lindsay, OMANZ general manager, says the growth in outdoor revenue has continued to outstrip all other media, and as a result was continuing to see a greater diversity of advertisers and advertising categories.

“Advertisers are clearly recognising that different outdoor formats can target different groups of consumers with different messages. Although digital formats have helped to significantly grow the outdoor market, static sites remain a distinct media planning opportunity through their unique locations reaching specific audiences,” says Lindsay.

Spark, Vodafone NZ and McDonald's were the top three advertisers for out-of-home spending for 2017.

Sarah Williams, Spark's head of brand and experience, says the company approaches its campaigns from a channel-neutral perspective, however it recognises the value of broadcast channels given its ability to reach a mass audience.

"Exposure to out-of-home is increasing as more sites are developed along with the growth of digital out-of-home. As a channel, in the past, measurement of effectiveness has been limited – the key players in the out-of-home category have invested heavily in this space, along with the ability to target different moments in the purchase cycle. At its core, it’s still the largest canvas media placement available and for a brand like Spark, we really benefit from the gravitas the channel carries."

ANZ Banking Group was sixth of the top ten advertisers for 2017 and in 2016, its head of marketing, Astrud Burgess, told NZ Marketing magazine out-of-home has its advantages.

“I always like to say ‘you can’t fast forward a billboard. It’s there, it’s present when you are sitting in traffic and that’s what we like about it,” says Burgess.

ANZ concentrates its billboards in Auckland given its population and predicted growth, an effort Burgess refers to as “painting the town blue”.

In other out-of-home news, oOh!media has announced it has continued double-digit growth in revenue, up 13.1 percent, with digital revenue as a percentage of total revenue increased to 59.8 percent for the full year. 

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Comms Council announces The Pressie Awards

  • Awards
  • August 23, 2019
  • StopPress Team
Comms Council announces The Pressie Awards

The Commercial Communications Council has announced The Pressie Awards are back for a second year, after launching in 2018 as the PRESCom Awards.

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