APN Outdoor has penned a deal with digital transit technology company XTD, with the outdoor giant increases the scope of its partnership with XTD, as the content sales agency for XTD’s digital screen networks in the Melbourne and Brisbane metro rail networks.
APN is investing strongly in digital signage, its digital revenue rose by 50 per cent to a third of the total revenue for 2016 with 34 per cent of the total revenue, compared to 23 per cent in the year prior. APN Outdoor’s full year result for 2016 saw its revenue up 10 per cent at $330.9m.
The company says print will continue to pay an important part in its portfolio, but it is clear the company’s growth focus is on digital.
XTD installs and maintains what it claims is the world’s most advanced digital media systems designed for metro transit environments. The company owns and operates the system in Melbourne and Brisbane and is also currently operating a trial system within the metro tail network in New Delhi, India.
[Related: APN and oOh! merger cancelled]
The new agreement is set to run for the next 18 months, with consideration for an additional extension term of 18 months.
Steve Wildisen, CEO, XTD says, “We are pleased with these more extensive business arrangements with APN outdoor. The digital out of home sector continues to accelerate in popularity with marketers and media agencies and remains one of the fastest growing media sectors in Australia and globally.”
This move coincides with APN’s decision earlier this year to focus more on digital billboards then print. Richard Herring, CEO at APN Outdoor told ProPrint, “The ongoing shift to digital will drive revenue growth. The conversion of APN Outdoor’s Classic sites to large format Elite digital screen is attracting greater revenue. However this growth in revenue will be partially offset by the resultant reduction in Classic format revenue and associated production and installation services.”
During 2016, the company installed 35 new large format digital Elite screens, 32 of them were installed during the second half.
APN Outdoor successfully integrated acquisitions of iOM and Metrospace, and announced transformational merger with oOh! Media to create a leading out of home and online media group, expected in May 2017.
According to the latest figures from the OMA, the Aussie OOH advertising industry attracted revenues of $678m per annum of which 28 per cent was now digital
Comment below to have your say on this story.
If you have a news story or tip-off, get in touch at editorial@sprinter.com.au.
Sign up to the Sprinter newsletter