Outdoor Advertising Grew Net Revenue By 10% In 2014

Outdoor Advertising Grew Net Revenue By 10% In 2014

The Australian Out-of-Home (OOH) industry experienced unprecedented growth in 2014 posting a 10.0% overall increase on net revenue year on year, taking the industry’s net revenue to $602.1 million, up from $547.6* million in 2013.

Julie Jensen
Posted by Julie Jensen

“We are thrilled with the result of 2014, solidifying the value of Outdoor in the media plan. This is our fifth year of growth since we recovered from the GFC in 2010, which also coincided with the launch of MOVE, our audience measurement system,” said Charmaine Moldrich, CEO of the Outdoor Media Association (OMA).

“MOVE (Measurement of Outdoor Visibility and Exposure) has proven to be a sound investment, providing a currency for Outdoor and allowing media buyers and advertisers to validate decisions with accurate reach and frequency,” Moldrich said “MOVE is able to show the efficiency of the medium, and our continual updates and software development ensures accuracy in measurement and ease of use.”

In tracking the growth of OOH across 2014, there was a modest start with a 1.8%* year on year increase for quarter one, which picked up substantially in quarter two with an 8.9%* increase from the same period in 2013. The industry hit its stride over winter showing an 11.6%* increase for quarter three which was followed by extraordinary growth in quarter four of 15.6%, compared to the same quarter in 2013.

The industry has undergone phenomenal change in 2014 growing digital Out-of-Home (DOOH) inventory which now represents 18.8% of revenue, reflecting a 66% increase from 2013 (11.3%).

OOH audiences are also growing. In 2014, MOVE reported an increase of 3.6% in total daily contacts measured, totalling 400 million up from 386 million in 2013. People are travelling further each day and spending an average of 14 hours travelling and shopping each week. In light of this, Australians are now likely to see an average of 26 advertising faces each day.

“What is so exciting about the 2014 results is that we are seeing growth across all formats. Technology is driving some of this, with the uptake of digital and mobile integration, but traditional, static formats are winning too. The potential for Outdoor to innovate and engage with consumers is really compelling, while the broadcast story remains strong,” said Moldrich.

“The OOH industry continues to deliver healthy results and evolve at the pace that audiences are demanding – and we have plans for further advancements in 2015. Watch this space,” said Moldrich.

Category totals for 2014**:
Roadside Billboards (over and under 25 square metres) $197.8 million
Roadside Other (street furniture, taxis, bus/tram externals,
small format)
$199.7 million
Transport (including airports) $106.1 million
Retail $98.5 million

 

Category figures for Quarter Four 2014**:
Roadside Billboards (over and under 25 square metres) $60.9 million
Roadside Other (street furniture, taxis, bus/tram externals,
small format)
$60.2 million
Transport (including airports) $37.1 million
Retail $31.5 million

*Figures have been adjusted from previously reported 2013/2014 revenue to reflect changes in OMA membership, allowing direct comparisons in revenue year-on-year.

**Figures may not add to total due to rounding.