Out-of-home revenue holds firm in first half of 2018, digital on the way up

  • Advertising
  • July 31, 2018
  • StopPress Team
Out-of-home revenue holds firm in first half of 2018, digital on the way up

Out-of-home revenue grew by one percent to $55,098,516 (gross media revenue) in the first six months of 2018 according to the latest report from the Outdoor Media Association of New Zealand (OMANZ).

The one percent growth in the January 2018 - June 2018 period follows 28.6 percent growth in the outdoor sector for the January-June period last year.

This year, in a significant milestone for the outdoor sector, digital revenue broke the 50 percent barrier in June, with 52.5 percent of total revenue generated from outdoor digital assets. This result contributed to a second quarter outcome of 50.5 percent of all revenue reported being delivered via digital assets.

In the January 2017 to June 2017 period, digital was making up just 41.4 percent of outdoor revenue.

Nick Vile, OMANZ chairman and Adshel New Zealand general manager, says it’s heartening to see that out-of-home revenues have held up in what has been a tough first half-year for the media industry as a whole.

Business confidence fell after last year’s election and the decline was exasperated by a plateauing in the housing market, he says.

“We hoped that business confidence would bounce back post the summer holiday but what we’ve actually seen is a continuation of uncertainty in campaign planning and as a result, a very short market.

“However, what is pleasing with the half-year results is that we have significant investment and revenue growth from ‘brand building’ advertisers into the sector from the telecommunications, fast-moving consumer goods, automotive and finance/banking categories.”

Despite the single figure growth result, Vile says the level of investment across OMANZ members has not abated this year. There are now more digital screens across out-of-home channels in feature locations and there has been steady investment into audience targeting tools across the sector, he says.

“There is no denying the rest of 2018 is going to be interesting, as an industry body we remain committed to the delivery of a unified audience measurement tool and continuing to create value for our advertising clients.”

However, speaking to NZ Marketing earlier this year, Mike Watkins, general manager of APN Outdoor New Zealand, offered a note of caution regarding the move to digital.

“As we look forward we will continue to see the digitisation of sites, however, as an industry we must be careful how deep this goes to ensure that we do not over saturate the market and commoditise the products,” he warned.

“The emphasis will move towards the data we collect from our sites and how that can be commercialised. We are, after all, selling audiences, not media space. With this, will come the introduction of retargeting and attribution which will bring a whole new layer to the power of outdoor.”

Out-of-home revenue grew 18 percent for 2017, doubling that of 2012 with a revenue surpassing $120 million.

The revenue that contributes to this result is gross media revenue as reported by OMANZ members; Adshel, APNO, QMS, oOh! Media, and M5.

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