Dr Matt Cullen, MD and CEO of Tonic Health Media (pictured below) gives an insight into the legacy of routine when it comes to media spend and how out-of-home can deliver a more refined audience in a more refined way.
The media industry continues to shout about the importance of contextual relevance when it comes to grabbing digital audiences. The funny thing is, agencies often overlook the opportunities presented for place-based out-of-home media to deliver the same engagement in physical environments.
Traditional media will always have a place on budgets, that’s not in contention. TV, radio and print are solid channels that work for broadcast and limited targeting, and agency spend with these channels will remain strong. What’s also not up for debate, is that these channels’ audiences are shallowing out, and fragmenting. The surety around when and where these channels will get consumed is diminishing. While they’ll always be great at building brands, their capacity to catch an audience in a predefined moment-in-time (or context) is not what it once was.
The issue is the legacy of routine when it comes to media channel spend. TV and radio alike still attract a certain percentage of dollars, arguably because ‘that’s the way it’s always been’, and just like digital and especially programmatic are giving the industry pause-for-thought about these practices, the same is happening with out-of-home.
Traditional channels still attract a certain percentage of dollars, but just as we have seen with the rise of digital and latterly programmatic’s impact on TV, Print and Radio, the out-of-home industry needs to consider how it can deliver a more refined audience in a more refined way.
The out-of-home industry is enjoying a much-publicised boom at the moment, posting strong growth for the past 7 years. According to Nielsen, Out-of-home media spend in Australia topped $679 million in 2015, up 2.4% YoY. Recent OMA figures show out-of-home finished 2016 with a 15.8% increase in growth, taking the industry’s net media revenue to a record high of $789.5 million, up from $682.1 million in 2015. In January this year, the industry posted an 11.6% revenue increase from the same month last year.
Much of this spend is being chewed up by the broadcast networks, JC Decaux, Adshel and APN. I think there’s a good argument that prevailing doubt about how to actually reach people in a modern world is fuelling the renaissance. Agency buyers and planners are spending more with out-of-home because the audience is unquestionable. People move around. People go places and see things. It’s more intuitive than wondering if the audience looked up from their phones during your TVC, or if anyone stopped to actually look at your Mrec while they scrolled through the news.
It’s where this traditional and digital doubt creeps in, that the opportunity for targeted, place-based out-of-home communications begins to make its case. Contextually relevant out-of-home is one of the most exciting sectors of the game, simply because it melds an obvious audience consideration set with an actual concrete audience. Think gyms, airports and health settings. These contexts offer an audience where their mindset is much less up-for-debate than other media channels.
What’s on offer is intuitive cut-through, and less doubt. It’s worth remembering that location is one of the strongest indictors of intent and mindset. Out-of-home is the only medium capable of certifiable contextual relevance, and place-based media offer the kind of bankable consumer mindset that traditional, and even digital channels can only dream of.
Please login with linkedin to commentDesignworks
Thrive PR Melbourne has kicked off the year with new appointments, promotions and a new leadership team, marking the delivery of a transformation strategy that’s seen the agency diversify and strengthen its corporate, consumer and integrated digital service offering in Victoria. Lead image: (L-R) – Sophie Maguire, Melanie Campbell, Nathan McGregor, Zoe Raknes, Erika Rutledge, […]
Forbes Australia has announced a slew of new speakers for its second annual Forbes Australia Women’s Summit: ‘Power Rising’. The ‘Power Rising’ event will take place at the Roslyn Packer Theatre in Sydney, led by a star-studded line up of female speakers. “We often learn as much from stories of hardship and failure as we […]
Iconic Australian ad guru Russel Howcroft and industry up-and-comer Freddie Young from Good One Creative have today launched their experimental, no spin advertising podcast, AdMission, in partnership with 9Podcasts. AdMission tells the uncensored stories behind the world’s most talked about brands, ideas, campaigns, advertising news and industry screw ups, as well as offering sharp insight […]
B Corp shop Paper Moose promises all the paper in its name was recycled as it reveals new ethical investment campaign.
According to a new study from CPR First Aid has revealed that Aussies’ most Googled personal goal in the summer is losing weight, new research has found. Their next most researched summer objective is healthy eating, followed by drinking more water. This time of the year, Aussies want to stop snoring and quit smoking more […]
Businesses are integrating customer data platforms with AI and analytics to personalise customer experiences and drive business success, according to a new report from Twilio Segment. Lead image: Kathryn Murphy, SVP of product and design, Twilio. The fifth annual Customer Data Platform Report, which reflects the findings of anonymised usage data from Twilio Segment’s more […]
Word of Mouth Digital, a Sydney-based full-service digital marketing agency, has announced the addition of six diverse brands to its expanding client portfolio. Lead image: Alex and Tash Williams These new partnerships span various sectors, including pet care, cognitive health, home construction, wellness, and retail, showcasing the agency’s commitment to fostering growth through strategic collaboration […]