The Australian Consumer and Competition Commission (ACCC) is set to rule on both the oOh!media purchase of Adshel, along with the JCDecaux merger with APN Outdoor on August 30.
The four companies between them account for the placing of the majority of outdoor print in Australia, which in the second quarter this year was worth $113.2m, a $5m increase on the previous corresponding period.
The ACCC has previously knocked back a proposed merger between oOh! and APN, the two biggest players in the outdoor industry by revenue and reach, ruling that the potential $1.6bn company would have a stranglehold on the industry, forcing customers to pay whatever prices it set.
The companies announced their acquisition plans on successive days, with oOh! purchasing Adshel on June 25, and JCDecaux buying APN on June 26. The ACCC is set to rule on both mergers on the same day, inferring that the outcome of one will affect the outcome of the other.
The Out of Home industry is one of the few print related advertising sectors that continues to grow year-on-year, albeit with most of the growth coming from the digitisation of assets.
The Outdoor Media Agency (OMA), the peak body of the industry, has released the second quarter results of 2018, in which Out of Home grew 14.2 per cent in its net media revenue from last year, reaching $225.7m from $197.5m. This though includes a $5m growth in print spend from Q2 last year.
Once a small proportion of the total, digital revenue is now almost half of total media revenue, and now accounts for 49.8% of total net media revenue year-to-date, an increase over the recorded 45.4% at the same time last year.
Digital is $112.4m, with print at $113.3m, compared to this time last year, where digital was $89.6m, and print at $107.8m.
Charmaine Moldrich, CEO, OMA, says, “Out of Home is now firmly embedded in its role to be the always on place that people go to, to stay connected. Our digital network is providing the flexible, time-sensitive solution advertisers require, and traditional inventory will always deliver consistent place-based, broadcast messages.
“Even as the ground shifts underneath us, the industry will continue to thrive and it is an exciting time to be part of this growth.”
Breaking down the Q2 2018 figures further, roadside billboards accounted for $97.1m, roadside other (including street furniture, bus/tram externals, small format) came in at $60.4m, with transport (including airports) sitting at $36.5m, and retail, lifestyle, and other making up the final $31.8m.
Most of the growth comes from roadside billboards, which were $78.1m in Q2 2017, now $97.1m, with roadside other growing $4m, transport growing $5m, and retail, lifestyle and other having growth of under $1m.
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