As we return to the daily grind, resetting our alarm clocks and welcoming our morning caffeine fix with open arms, our summer holidays become distant memories … but there is positive light at the end of the morning commute, and it isn’t just a digital billboard.
The Australian Out-of-Home (OOH) industry has posted a 10% overall increase on net revenue year-on-year, taking the industry’s net revenue to $602.1 million, up from $547.6* million in 2013!
“We are thrilled with results of 2014. These results solidify the value of Outdoor in the media plan,” said Charmaine Moldrich, CEO of the Outdoor Media Association (OMA).
In tracking the growth across 2014, there was a modest start with a 1.8%* year-on-year increase for quarter one, which picked up in quarter two with an 8.9%* increase from the same period in 2013. The industry hit its stride over winter showing an 11.6%* increase for quarter three, which was followed by a strong fourth quarter with extraordinary growth of 15.6%* compared to the same quarter in 2013.
This growth is also being reflected overseas, particularly in the USA, where Magna Global is expecting OOH to be the only traditional core medium to grow in 2015. According to the firm’s latest forecast, as reported by the Outdoor Advertising Association of America (OAAA), OOH is expected to grow 3.7% in 2015, while TV will decrease by 1.4%, newspapers by 8.2%, magazines by 9.4%, and radio by 1.2%.
Late last year Mediaweek, in Australia, also reported Magna Global predictions, predicting that digital will drive growth in OOH revenues with a forecasted 21.2% compound annual growth in Digital Out-of-Home (DOOH) from 2014 to 2019 versus the total Outdoor market. Here at home, the DOOH industry has undergone phenomenal change with the surge in DOOH inventory now representing 18.8% of revenue an increase of 7.5 percentage points on the 2013 figure of 11.3% which represents a 66% increase year-on-year.
But revenue isn’t the only place OOH saw a rise. OOH audiences are also growing. In 2014 MOVE (Measurement of Outdoor Visibility and Exposure), reported an increase of 3.6% in total daily contacts measured for OOH, totaling 400 million, up from 386 million in 2013. People are travelling further each day and spending an average of 14 hours travelling and shopping each week. In light of this, Australians are now likely to see an average of 26 advertising faces each day.
“What is so exciting about the 2014 results is that we are seeing growth across all platforms,” says Moldrich. “Technology is driving some of this, with the uptake of digital and mobile integration, but traditional, static formats are winning too. The potential for Outdoor to innovate and engage with consumers is really compelling, while the broadcast story remains strong,” she continued.
As the OOH industry continues to deliver healthy results and evolve at the pace audiences are demanding, there are exciting plans for further Outdoor advancements in 2015 – watch this space!
*Figures have been adjusted from previously reported 2013/2014 revenue to reflect changes in OMA membership, allowing direct comparisons in revenue year-on-year.