The Out of Home (OOH) industry has announced a slight decrease on net media revenue year on year (YoY) for the third quarter of 2019, according to a report by the Outdoor Media Association (OMA).
The industry saw a 0.9 per cent dip, posting $218.2 million, down from $220.2 million for the third quarter of 2018.
The third quarter of 2018 was one of OOH’s healthiest quarters to date, with an increase of 10.7 per cent from the previous year, 2017.
For the year to date, the industry revenue increased 3.1 per cent, posting $665.5 million, up from $645.3 million in 2018.
OMA also found that digital revenue continues to grow and is sitting at 55.3 per cent of total net media revenue year-to-date, an increase over the recorded 50.2 per cent for the same period last year.
OMA CEO Charmaine Moldrich said the plateauing of revenue growth in the third quarter is not unexpected given the current national financial outlook.
“The last time the industry experienced negative growth was quarter four of 2012, which was also in comparison to a very healthy quarter the previous year. The industry has enjoyed seven years of consecutive growth at a time when other traditional media channels have experienced declines in revenue, as well as audience,” Moldrich said.
“Out of Home is both resilient and buoyant. While the current economic outlook is affecting advertiser confidence, we know that it is also the time that advertisers need to keep their brands top of mind and Out of Home delivers; broadcasting its messages to growing audiences in the public space.
“The Standard Media Index AU/NZ recently announced that the first eight months of 2019 have reflected lower advertising demands with the Australian market declining 4.9 per cent. OOH has continued to grow in this challenging environment, increasing revenue year to date by three per cent.
“We will continue to see growth in Out of Home over the medium and longer term, as we innovate and make it easier to plan, buy and measure our channel.”
Moldrich also mentioned that the organisation will launch a new product, CORE, in early 2020.
The solution is said to streamline the briefing and response process for buying OOH, while delivering significant time savings for agencies, clients and OMA members.
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