Continued growth for the Out-of-Home sector in 2019
The Outdoor Media Association (OMANZ) reported impressive revenue growth in 2019 of 14.2%, taking annual revenues to $141.25m, with every quarter in the year contributing to the annual growth.
This result is the continuation of a growth trend for the sector which has seen a four-year consolidated annual growth rate of 37%.
Further digitisation across the sector and improving yield profiles have been identified as the underlying factors for the continued growth experienced in 2019.
Digital out-of-home continues to be the significant contributor to overall out-of-home revenue growth and increased by 31% YOY, accounting for 61% ($87m) of all revenue in 2019. Digital’s share of out-of-home revenue has been consistent throughout the year at approx. 60% for each month across 2019.
Static revenue decline has stabilised with a decrease YOY of just -5.5% (total revenue of $54m in 2019), which is a marked improvement on the -12.7% decrease experienced in 2018. This result is an indication that advertisers appreciate that the classic format remains a cost-effective channel to build audience reach.
OMANZ General Manager, Natasha O’Connor said, “2019 saw our members continue with their commitment to developing portfolios of world class digital sites which in turn was embraced by the advertising industry and led to outstanding creative campaigns using the attributes of digital to its potential; examples included, Air New Zealand’s ‘RWC Sports Desk’, ASB's 'Clever Kash' and MediaWorks 'Three at the Vodafone Awards' to name just a few.
O’Connor continues, “In a market that will continue to be challenging, 2020 will see OMANZ members unified in their focus on the key strategic pillars of accountability, innovation and relevance to ensure the momentum that has been achieved over the last few years continues.”