The out-of-home (OOH) industry has lost 65% of net media revenue for the second quarter of 2020 due to the coronavirus pandemic.
The sector saw audiences decline significantly in March due to stay at home orders to curb the spread of coronavirus. As a result it’s posted a revenue of $82.1 million for Q2, down from $234.6 million during the second quarter in 2019.
Digital revenue is at 55.7% of total net media revenue year-to-date, an increase from the recorded 54% for the same period last year. Year-to-date revenue has decreased 35.4% at $289.1 million, a decrease from $447.3 million on 2019 revenue.
“We anticipated that in quarter two outdoor would be hit hard, as people rightfully changed behaviours and reduced their movement,” says Charmaine Moldrich, Outdoor Media Association (OMA) CEO.
“What we also saw during the quarter, as restrictions were lifted, was a correlating rise in revenue of 23% from May to June, and an increase in enquiries and bookings for the latter half of the year.
“Advertisers have missed the broadcast benefits and reach OOH offers and are becoming more confident as audiences return to their home away from home: outdoors.”
The decrease in revenue is in line with Standard Media Index (SMI) figures which reported advertising revenue has decreased by 40%.
“For an industry that has seen steady growth in audiences and revenue for the previous decade, the pandemic has been a significant disrupter,” says Moldrich.
“It is a credit to Australians that we followed government restrictions and reduced and even eliminated travel and social activity to succeed in flattening the curve.
“The resurgence in audiences out and about is a sign that our country is on the way to recovery and is something to be celebrated.”
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