Outdoor revenue holds firm for H1 2018

MEDIA RELEASE Auckland, Friday 27th July

Outdoor revenue holds firm for H1 2018 in a softening media market as investment in innovation by OMANZ members continues unabated

The end of H1 2018 has seen Outdoor revenue, as reported via OMANZ members grow by 1% to $55,098,516 (gross media revenue) versus the same period in 2017. An impressive result in the context of 28.6% outdoor sector growth for the Jan – June period in 2017, coupled with a softening media market (SMI CYTD is 0% for the period ending May 2018).

In a significant milestone for the outdoor sector, digital revenue broke the 50% barrier in June 2018 with 52.5% of total revenue generated from outdoor digital assets. This June result contributed to a Q2 outcome of 50.5% of all revenue reported being delivered via digital assets.

Commenting on the H1 performance Nick Vile, OMANZ Chairman and Adshel New Zealand General Manager said;

“It’s heartening to see that OMANZ revenues have held up in what has been a tough first half of the year for the media industry as a whole. We saw business confidence fall post last year’s election and this decline in confidence was exasperated by a plateauing in the housing market. We hoped that business confidence would bounce back post the summer holiday but what we’ve actually seen is a continuation of uncertainty in campaign planning and as a result, a very short market.”

“However, what is pleasing in the H1 results is that we have seen significant investment and revenue growth from ‘brand building’ advertisers into the sector from the telecommunications, FMCG, automotive and finance/banking categories.”

“There’s no doubt that they are seeing the traditional broadcast benefits of outdoor plus with the current level of innovation in the sector, as a key component of their communications strategies.”

Vile goes on to say; Outdoor Media Association of New Zealand (OMANZ) Level 2, 6 Clayton Street, Newmarket 1023, Auckland | +64 21 657 492 | derek@omanz.co.nz

“Despite the single figure growth result, the level of investment across OMANZ members has not abated through H1. We’ve seen more digital screens across all Outdoor channels in feature locations for large format and into new regional markets for the Adshel and oOh! formats, as well as the continued investment into audience targeting tools across the sector.”

“There is no denying the rest of 2018 is going to be interesting, as an industry body we remain committed to the delivery of a unified audience measurement tool, continuing to create value for our advertising clients and broadening our membership base to ensure that as a sector we are aligned and supportive of our industry’s key objectives.”

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