Out-of-home revenue driven by impressive digital growth

  • Advertising
  • July 21, 2017
  • StopPress Team
Out-of-home revenue driven by impressive digital growth

Digital revenue now makes more than 40 percent of out-of-home revenue according to the Outdoor Media Association of New Zealand (OMANZ).

From January 2017 to June 2017, OMANZ reports that 41.4 percent of outdoor revenue was digital, due a consistent increase in the availability of digital sites in New Zealand.

Despite this growth, revenue for static sites has held up extremely well over the same period and is currently just 1.6 percent down this year to date. 

Following on from last quarter's trend, the advertising revenue spent through members of OMANZ continues to grow at 29 percent year-on-year for the first half of 2017. 

In the latest quarter, April to June, revenue reached $28.4 million, which was 28 percent up compared to the same period last year. 

All three individual months in Q2 2017 demonstrated continued growth in total revenue, each more than 25 percent year-on-year, with June just shy of $10 million total revenue.  

“Over the last five years, outdoor has seen significant increase in demand," says Derek Lindsay, OMANZ general manager. "With the growth in consumers moving about and travelling more, outdoor advertising holds a greater influence in growing brand messages as it is a medium uncluttered by content and the ability to push a button to avoid the ads."

"With the increased use of data to provide ROI outcomes, advertisers have, as a result, responded by re-allocating budgets to spend more in the outdoor medium as a whole. Looking ahead, we expect the outdoor medium to continue to grow strongly, helped along in part by the digital demand, with more digital sites becoming available and more advertisers perceiving greater opportunities from the outdoor format.

"Interestingly, when you put together the outdoor advertising share trends in other global markets along with our current growth in supply and demand here, we predict that outdoor’s share of New Zealand advertising revenue will reach seven percent by 2020”.

New Zealand outdoor advertising has been experiencing consistent growth with its share is now 4.6 percent of the total advertising expenditure as of 2016. This is up from 3.7 percent in 2015, with digital only out-of-home advertising also increasing from 28.6 percent to 30.4 percent.

However, OMANZ says this share is still behind other developed countries such as the UK, Canada, France and Australia. 

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