oOh!media reports improved trading, stronger interest from advertisers and returning audiences as the outdoor specialist climbs from the depths of COVID-19.
The company, releasing first half results, confirmed that COVID-19 restrictions caused an unprecedented decline in audiences and a slump in revenue.
However, revenue in Australia started to pick up in June and trading in August was pacing at 60% of the same month last year compared to May which was just a quarter of May in 2019.
“We're starting to constantly see that gradual growth back up,” CEO Brendon Cook told AdNews.
The company’s share price was up 10% today to $0.975.
oOh!media reports briefing activity from major national advertisers is also improving.
Large national advertisers in both Australia and New Zealand are increasing their briefing activity, and acting in a more measured approach compared to the initial April lockdown.
The company says the market appears to be trading two weeks shorter than normal, making it difficult to form a view of how September will finish.
The company is not giving forecasts because of the uncertain conditions in the market.
However, revenue typically lags audience metrics in both Australia and New Zealand. oOh!media says Australian audience improvements in the second half of the year are expected to deliver meaningful revenue growth in the third and fourth quarters.
Cook says out-of-home is still a highly effective medium to deliver effective national broadcast reach in all markets.
In New Zealand, audience growth has recovered strongly which has led to a 36% increase in revenue in July from June.
“Using advanced mobile data we can also see that out-of-home audiences are returning across Australia when looked at nationally, although of course some areas are still heavily impacted,” says Cook.
Cooks says people are staying in their own suburban areas during the week and travelling out of the city at weekends, for country escapes.
“Regional markets, they're often from a weekend perspective having more traffic than historically back to the same time last year,” Cook says.
He was in Orange, NSW, recently and saw more road traffic there than North Sydney. “And trying to get to the restaurant. If you haven’t booked, don't bother to even try cause you wouldn't get in,” he says.
Roadside and retail audience volumes in regional areas have recovered to 93% of their level compared to the same week last year, having dipped as low as 57% in mid-April.
A similar trend in suburban areas, which are at 68% of 2019 levels, according to roadside audience measurements.
“Even with Victoria in lockdown and other movement restrictions, oOh! is still able to reach over +370 million contacts per week nationally across our billboards and shopping centre networks alone, which doesn’t include our other formats such as street furniture.”
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