Outdoor advertising revenue being driven by impressive growth in digital; Up 29% year on year

Screen Shot 2017-07-24 at 8.30.53 am.jpgThe advertising revenue spent through members of the Outdoor Media Association of New Zealand (OMANZ) continues to grow at 29% year on year for the first half of 2017.

In the latest quarter, April to June, revenue reached $28.4million, which was 28% up versus the same period last year.
All three individual months in Q2 2017 demonstrated continued growth in total revenue, each more than 25% year on year, with June just shy of $10 million total revenue.

In recent times we have seen a consistent increase in the availability of digital sites in New Zealand. As a result, we have experienced remarkable growth with Digital revenue representing 41.4 % of Jan - June 2017 OMANZ Outdoor revenue. Despite this growth, revenue for static sites has held up extremely well over the same period and is currently just 1.6% down year to date.

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Looking at the bigger picture, New Zealand Outdoor advertising has been experiencing constant growth - its share is now 4.6% of the total advertising expenditure. However, this share is still behind other developed countries such as the UK, Canada, France and Australia.

The overall five-year trend in NZ Total Revenue by quarter is:

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Says Derek Lindsay, general manager, OMANZ: "Over the last five years, Outdoor has seen significant increase in demand. With the growth in consumers moving about and travelling more, outdoor advertising holds a greater influence in growing brand messages as it is a medium uncluttered by content and the ability to push a button to avoid the ads. With the increased use of data to provide ROI outcomes, advertisers have, as a result, responded by re-allocating budgets to spend more in the Outdoor medium as a whole.

"Looking ahead, we expect the Outdoor medium to continue to grow strongly, helped along in part by the digital demand, with more digital sites becoming available and more advertisers perceiving greater opportunities from the Outdoor format.

"Interestingly, when you put together the Outdoor advertising share trends in other global markets along with our current growth in supply and demand here, we predict that Outdoor's share of NZ advertising revenue to reach 7% by 2020."

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