The Out of Home (OOH) industry has recorded a decrease of 65 per cent on net media revenue for the second quarter of 2020, bringing in $82.1 million, according to the Outdoor Media Association (OMA).
This amount is also a decrease from the $234.6 million it posted for the second quarter in 2019.
However, according to OMA, digital revenue for Q2 2020 is sitting at 55.7 per cent of total net media revenue year-to-date – an increase from the recorded 54 per cent for the same period last year.
Year-to-date revenue has decreased to 35.4 per cent and is sitting at $289.1 million. This is a decrease from the $447.3 million in revenue recorded in 2019.
OMA CEO Charmaine Moldrich said the decrease in OOH revenue is in line with Standard Media Index (SMI) reports that advertising revenue has decreased by 40 per cent.
“We anticipated that in quarter two, outdoor would be hit hard, as people rightfully changed behaviours and reduced their movement,” Moldrich said.
“What we also saw during the quarter, as restrictions were lifted, was a correlating rise in revenue of 23 per cent from May to June, and an increase in enquires and bookings for the latter half of the year. Advertisers have missed the broadcast benefits and reach OOH offers and are becoming more confident as audiences return to their home away from home: Outdoors.”
Moldrich added that despite the movement to physical isolation, OOH continued to be used effectively during the COVID-19 pandemic, particularly for localised and contextually relevant campaigns, as well as messages around health, hope, and unity.
“While CBDs, public transport and airports were naturally impacted by the lockdown, there were areas where audiences surged. These included locations surrounding and en-route to essential services such as supermarkets and pharmacies, and more broadly in local and suburban areas, as Australians embraced community and local services,” Moldrich said.
“For an industry that has seen steady growth in audiences and revenue for the previous decade, the pandemic has been a significant disrupter. It is a credit to Australians that we followed government restrictions and reduced and even eliminated travel and social activity to succeed in flattening the curve.
“The resurgence in audiences out and about is a sign that our country is on the way to recovery and is something to be celebrated.”
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