OOH Country Performance

USA: OOH ad revenue is at its highest level for 12 years

Out of home advertising revenue in the US increased by 7.7% year-on-year in the second quarter of 2019, representing its highest rate of quarterly growth since 2007, the latest trade figures have revealed.

According to the Out of Home Advertising Association of America (OAAA), the sector generated $2.69bn in Q2 2019, while revenue also rose 7% in the first half of the year compared to the same period in 2018.

Digital OOH posted the highest increases across all formats, the trade body said, accounting for almost a third (31%) of total OOH revenue in the second quarter.

But there was also “strong” quarterly growth in revenues for billboards, street furniture, transit and place-based media, said Nancy Fletcher, OAAA president and CEO.

Australia: Out-of-home revenues up 5.2% and digital on the rise, according to OMA half-year figures

Revenues are up across the out-of-home (OOH) industry, according to the latest figures from the Outdoor Media Association (OMA), with its 2019 half-yearly results showing a 5.2% rise compared to the same period in 2018. Total net media revenue was $447.3m compared to $425.2m the year prior.

The key categories for change were ‘roadside billboards’, which dropped $3m to land on $176.7m, and ‘roadside other’, which includes street furniture and bus/tram externals, and rose to $126.1m from $117.1m in 2018.

Transport, including airports, also rose with 2019’s figures showing a revenue of $82.6m from $69.8m in 2018, and retail and lifestyle, which includes shopping centres, offices and medical centres, rising from $58.3m to $61.8m.

UK: Matthew Dearden's OOH start-up Alight Media strikes two deals

Alight Media, an out-of-home start-up led by former Clear Channel boss Matthew Dearden, has struck two deals, winning a transport contract for South Yorkshire and buying about 40 sites that used to be run by collapsed media owner 8 Outdoor.

A significant proportion of former 8 Outdoor staff – thought to be about 30 people – are set to join Alight Media.

Dearden, the chief executive, who launched Alight Media with co-founder Dave Huckerby last year, said the twin deals were "a great fit" and will help "our ambition to constructively challenge the status quo in UK out of home media".

He believes there is a gap in the market for a new player that can offer reach to advertisers beyond the UK’s "top five or 10 urban conurbations" at a time when the big four OOH media owners, notably Global, have been consolidating.

Alight Media already manages some national ad sales for six-sheet sites in Cornwall, Devon and Somerset and has won a contract to install digital six-sheets in Bournemouth.

"We’re adding scale in key locations, bringing fantastic people and capabilities on-board and with the right financial backers in place, this move lays the foundations for significant further growth," he said.

The new investment is believed to be worth seven figures but Dearden would not comment and declined to identify any backers who are "private individuals and family offices".

The South Yorkshire Passenger Transport Executive contract includes nearly 900 six-sheet sites across Sheffield, Doncaster, Rotherham and Barnsley. Dearden said he sees two opportunities because there are relatively few sites in the region compared to South Yorkshire’s 1.4m population and size and none of the sites has digital screens yet.

"Winning a contract of this size underlines our belief that the market is ready for a new player," Dearden said.

Alight Media is also picking up the remaining assets that used to be managed by 8 Outdoor after striking a deal with administrators.
The sites, which are in the North East and West, the Midlands, Greater London and Scotland, are thought to be chiefly large-format roadside digital screens.

8 Outdoor collapsed earlier this month after it lost about two-thirds of inventory when a key landlord, Insite, terminated its licence earlier this month and moved the sites to Global.

Dearden said 8 Outdoor’s underlying strategy to drive digital expansion and nation reach "was always right" despite its financial troubles.
He spent seven years at Clear Channel until the end of 2016, rising to be president of its European operation, and was previously a marketer at BT. Huckerby is also a former Clear Channel executive.

Alight Media has an existing team of about half a dozen people, including Ged Glover, formerly of the Advertising Association, who is chief revenue officer.

UK: How Out of Home can target hard-to-reach young TV audiences

The recent Ofcom report into the UK TV market highlighted a number of stark realities for the medium; not least the well-known fragmentation of viewing that affects 16-34 year olds and the scale of challenge broadcasters face from numerous streaming services.

As ITV announce a second annual series of the popular Love Island, we learnt from the report that another 14 Love Islands would be required to make up the drop in traditional TV viewing. Ofcom’s report shows that the amount of traditional TV watched by 16-24s has halved since 2010 from 169 minutes to 85 a day; the decline among 25-34s was 39 per cent from over three hours to under two.

UK: Food for thought: how OOH can help promote healthy living

A growing awareness of the importance of a healthy lifestyle and eating well is changing the way many people approach their diet. Due to issues such as climate change, food sanitation scandals and increasing obesity in developed and developing economies, many consumers are looking for healthier options.

These new behaviours have made a swift impact online: the number of Instagram posts with the hashtag “healthyfood” reached more than 65 million in 2019; while the hashtag “healthy” has been included in over 145 million posts.
Healthy eating Instagram infographic

But the trend for promoting healthy lifestyles is not confined to the Internet. Advertising, specifically Out-of-Home (OOH) advertising, has a great impact on our food choices and consequently, the way we consume: 9 out of 10 shoppers have seen OOH advertising in the previous 30 minutes before shopping. For this reason, more and more brands are promoting the positive impact of their products and the benefits (“free-from”, diet programmes, organic, no added sugar) through OOH.

US: Location data is improving OOH ads in starkly different ways

Unless you point out the occasional, super-leafy tree canopying all things around it, there are no ad blockers for billboards or other out-of-home (OOH) advertising. Indeed, OOH ads are almost always visible and seem to annoy consumers far less often than digital and TV ads. And that reality underscores why there’s been a renaissance in OOH, an $8 billion industry in the U.S. that’s expected to double by 2023.

OOH ads have seen notable growth because brands such as McDonald’s and REI are getting enviable returns from their campaigns. These types of big marketers aren’t necessarily moving away from digital—many, in fact, are increasing their digital out-of-home (DOOH) spend. Marketers are simply waking up to the fact that, when done right, out-of-home is inexpensive and effective compared to other channels. Further, this trend is also about marketers moving away from linear TV and radio to holistic campaigns that mix digital and offline touchpoints to reach the mobile consumer.

USA: Facebook Publishes New Report on the Benefits of Combining Facebook and Outdoor Advertising

Outdoor ads - including bus shelter campaigns and billboards - might not be within the budget of most SMBs. But for those businesses that can afford it, there can be significant benefits to running outdoor campaigns in combination with Facebook promotions. As per Facebook:

"With the widespread use of smartphones, the high visibility of out-of-home goes hand in hand with actions on digital channels such as social media. For example, nearly 4 in 10 adults surveyed (38%) in the US say they have visited a Facebook Page or posted on Facebook after seeing an OOH ad, and 25% have posted to Instagram."

To examine the specifics of the relationship between outdoor campaigns and Facebook, The Social Network recently commissioned Kantar and Accenture to glean some insight into how Facebook and outdoor ads can work together as part of a strategic media mix, looking at users in the UK, France and Germany.

As e-commerce and retail technologies continue to expand, interactive kiosks are finding greater use as retail enablers.

Retailers already comprise the majority of self-service kiosk operators, according to the 2019 Kiosk Marketplace Census Report, with retail order-and-pay being the leading type of kiosk operated. But as retail technologies and e-commerce continue to expand, interactive kiosks are finding additional uses, such as end-of-aisle fulfillment for omnichannel shopping and as buy-online-pick-up-in-store destinations. But that's not all.

Self-service kiosks are also playing an important role in retail strategies that combine the benefits of both physical and online stores — known as "phygital" — such as The Fitting Room, a Swedish concept that allows customers to browse merchandise on interactive kiosks, try on sample shoes and clothing, place orders and have them delivered to their homes.

USA: Rick Robinson's Annual LA Entertainment Review

OOH reports 7.7 percent growth last quarter. Movies report a high-water summer box office of $3.2B. Streaming services are exploding. Content is coming at us from all directions. It’s all good. Very good.

While the exhibitors seek to create immersive theatrical experiences to lure you out of the house, there’s often nothing better than taking in all this terrific, fresh, and easily available content in the comfort of your own home. The options are abundant, and it’s a buyer’s market. We, the viewers, have choices. A constant flow we can never hope to keep up with.

Yet in the end, the content machines need an audience, and the audience is hungry for more. OOH stands at the ready as the elixir. We are the analog messenger for the never-ending supply of digital content. We are where you go when you want to reach everyone right now. We are the voice of the cities we serve.

AUSTRALASIA NEWS

Australia: oOh!media's plans for growth in an 'extremely tough' advertising market

oOh!media is looking hard at costs and sending its sales team hunting in response to a sudden drop in advertising bookings. The out of home company has revised down its full year earnings, saying market conditions are subdued. Underlying EBITDA is forecast to be between $125 million and $135 million for the full year, down from previous guidance of $152 million to $162 million.

Underlying net profit after tax for the half year to June was down 24% to $9 million. oOh!media, which has until now been a beacon of light in a tough advertising market, has seen a fall in bookings, post the close of the financial year, for its big roadside billboards.

"Management has a clear view of what actions may need to be taken should trading conditions change, and is proactively targeting further cost savings," says CEO Brendon Cook.

Australia: QMS Media delivers revenue and earnings growth in 2019 first half

QMS Media has announced its financial results for the six months to 30 June 2019 (H1 CY19).

Group Statutory Financial highlights:

• Revenue up 23% to $128.9 million (up 24% to $130.5 million pre AASB 16)
• Gross profit up 85% to $90.5 million (up 45% to $70.9 million pre AASB 16)
• Gross profit margin of 70% (54% pre AASB 16)
• Underlying EBITDA up 144% to $56.4 million (up 47% to $33.9 million pre AASB 16).
• NPATA up 41% to $21.9 million (up 31% to $20.3 million pre AASB 16)
• NPAT up 65% $16.5 million (up 49% to $14.9 million pre AASB 16).

The largest airport digital billboard in the southern hemisphere has gone live at Brisbane Airport. The 400sqm ‘Big Morety’ greets arriving passengers into Brisbane Airport which was voted the best in Australia by SkyTrax and accommodates nearly 23.8 million passengers a year.

Located on Moreton Drive and affectionally titled Big Morety, it will complement a wider roll out of some of the best in class digital screens across the airport precinct. This coincides with a $40 million redevelopment of the Brisbane Airport Corporation (BAC) Domestic Terminal designed to deliver a high-quality engaging experience for travellers. As part of the redevelopment and broader media strategy, innovative digital displays will showcase uniquely Queensland content, creating a sense of place and a true end to end travel experience.

New Zealand: Nielsen splits NZ outdoor digital & static

Nielsen has unveiled a new enhancement to its Ad Intel service which shows the growth of outdoor advertising split by digital and static mediums in New Zealand. Outdoor media covers a wide range of out-of-home advertising including billboards, transit/bus and bus shelters, kiosks and freestanding units, airport advertising, shopping centres, malls, and tertiary institutions.

According to the Advertising Standards Authority annual ad revenue figures, out-of-home advertising represented approximately $95 million and 3.7% of total ad revenues in 2015 in New Zealand.

By 2018, this increased to $143 million and accounted for 5.4% of total advertising revenue.

ASIA NEWS

China: Following Asia's OOH boom, IPG Mediabrands opens Rapport China

IPG Mediabrands has launched Rapport – its global out-of-home (OOH) specialist media buying and planning agency – into the China market with the appointment of Jennifer Zhu as the managing director of the (aptly named) Rapport China.

This latest agency launch follows last year’s opening of Rapport Hong Kong and (in addition to solidifying an Asia footprint) adds to 16 existing global markets for IPG’s OOH specialists.

“The growing use of OOH campaigns by digital media giants is both a testimony to the efficiency of OOH and an indicator of future growth, as marketing spend in the sector is set to continue its upward trajectory,” said Leigh Terry, CEO IPG Mediabrands APAC.

Xaxis, the outcome media company and GroupM’s advanced programmatic arm, in partnership with Mediacom Malaysia, on Tuesday announced the results of a pioneering digital out-of-home (DOOH) campaign which showcased new real-time audience targeting and measurement capabilities for out-of-home advertising.

The campaign, which ran for less than two months on DOOH channels, reached more than 5.4 million people and was directly responsible for driving more than 1,300 store visits across seven Domino’s Pizza outlets, a ten percent increase in store footfall.

Singapore: Moving Walls Acquires Digital Signage Platform Quad42, Eyes Programmatic Media Opportunity for Next Billion Screens

Moving Walls, a Singapore-headquartered advertising technology provider announced today that it has reached an agreement to acquire Quad42 Media, India's leading digital signage management platform. As digital screens become a ubiquitous part of physical spaces, the addition of Quad42's strong presence in retail and place-based environments is aimed at creating the next wave of programmable digital signage.

Moving Walls operates Moving Audiences, an artificial intelligence-powered platform that automates OOH media planning, buying, and measurement on more than 20,000 digital billboards across Asia.

Quad42 Media has been supplying cloud-based digital signage software solutions to more than 75 retail chains and other commercial establishments with over 500 screens connected to the platform today.

Singapore’s Land Transport Authority (LTA) has handed the new Thomson-East Coast Line’s (TEL) advertising operator tender to Hong Kong-based OOH media company Asiaray Connect, while a consortium comprising SMRT Experience, JR East Business Development SEA (a subsidiary of East Japan Railway Company) and Alphaplus Investments (an investment company of NTUC FairPrice Co-operative) will take on the retail operator tender.

Asiaray is wholly owned by Asiaray Media Group, which has 25 years of experience operating in mainland China and Hong Kong with a strategic focus on airport and metro line advertising. For this tender, Asiaray proposed a mix of digital and static media products tailored to each TEL station. According to LTA, its digital media products also allow for the application of advanced technologies, such as video and data analytics, for dynamic and responsive advertisements that can adapt quickly to the fast-changing preferences of commuters.

India: Posterscope aims Rs 650-cr business in FY21, identifies programmatic DOOH as key growth driver

Posterscope, an out-of-home (OOH) communications agency from Dentsu Aegis Network (DAN), aims to take its business to the Rs 650-crore mark by the financial year (FY) 2021. The agency, which at present rolls out a business of Rs 450 crore and is growing 24% y.o.y for the last five years, had made Rs 350 crore in 2018.

“We are aiming to take our business to Rs 650 crore by 2021,” said Haresh Nayak, Group MD, Posterscope South Asia.

Nayak says programmatic DOOH is one of the key growth segments in the out-of-home space, adding 12% of the total revenue of Posterscope, up from 2% earlier. The agency eyes Rs 15-20 crore revenue from DOOH in FY20.

According to Nayak, the acceptance of programmatic DOOH among marketers has increased in the past two years and mature brands have incorporated it in their campaigns. “Our aim for this year is to educate newer clients about programmatic and make them invest in programmatic DOOH advertising,” he said.

India: OTT platforms to play key role in OOH growth

The Out-Of-Home industry has witnessed close to 11 per cent compound annual growth rate (CAGR) over the last 5 years, growing from Rs 2,000 crore (Rs 20 billion) in FY14 to Rs 3,400 crore (Rs 34 billion) in FY19, according to the recently released KPMG report, titled ‘India’s Digital Future: Mass of Niches’.Digital OOH contributes to nearly 30 percent of OOH revenues globally, but the report cites that in India the contribution has been limited to Rs 100 cr (3 percent).

As per the report, DOOH is still at a nascent stage in India, but is picking up pace. The medium is becoming increasingly dynamic as digital connected billboards can be altered in real time, linked to social media networks and offer interactive content.

World OOH News 2nd September 2019