OUTDOOR BOUNTRY
Driven by digitisation, programmatic proliferation and super-smart screens, the out-of-home (OOH) sector seems to be having its moment.
According to industry body the Outdoor Media Association of New Zealand (OMANZ), the Kiwi market grew 14 percent for annual revenues to NZ$141.25 million in 2019. Over the past four years, the sector has seen a consolidated annual growth of 37 percent.
That’s healthy growth by any measure.
“2019 has been a successful year for the out-of-home industry with growth of 14 percent year-on-year,” says OMANZ GM, Natasha O’Connor.
“2018 was a bit of a challenge for the industry, so seeing every quarter of 2019 not only in growth but the strongest quarters since before 2016 has been incredibly pleasing.”
So what’s behind the big upward trend?
In part its growth has been driven by maturing technology, and in particular, digital screen infrastructure. In a word, digitisation.
According to the most recent reckoning, digital out-of-home accounts for about 61 percent (NZ$87 million) of OOH’s revenue growth in 2019. That’s in line with the upward global trend as worldwide the digital-out-of-home market is forecast to hit almost NZ$13 billion by 2023.
It’s a rapid shift in the industry globally and in New Zealand.
“At the end of 2013 in New Zealand, less than one percent of OOH advertising spend was made on digital OOH media,” says Phil Clemas, founder and CEO of Lumo. “At the end of 2019, just six years later, over 63 percent of all OOH spend was on digital inventory.
“During that same period, total
