The out-of-home industry is hopeful that a post-COVID recovery is underway, despite big falls in net revenue, as the nation slowly returns to outdoor spaces.
Industry body Outdoor Media Association (OMA) reported a decrease of 56% on net media revenue for the third quarter of 2020, posting $95.8 million. This is down from $218.2 million for the third quarter in 2019, but an improvement on the 65% year-on-year revenue decline seen in the second quarter of 2020.
Digital revenue is 55.6% of total net media revenue year-to-date, an increase from the recorded 55.3% for the same period last year.
“Although our industry has been hit hard by the global pandemic and the additional lockdown in Victoria, we are seeing the market gradually improve,” says OMA CEO Charmaine Moldrich.
“In Q2 the OMA reported a drop in revenue of 65% on the year prior, so it is heartening to see advertising spend increase from what was our lowest point.
“It is especially hopeful as we see lockdown measures lifted across the country in the lead up to what is the industry’s strongest quarter, with spring, summer and the Christmas period ahead.”
Data provided by OMA shows that as restrictions ease and weather warms up, audiences are returning to outdoor spaces and places. Traffic is back 75-90% of pre-COVID level across Australia, according to the TomTom Traffic Index, and there are signs of audiences returning to public transport.
“These trends, in addition to lifting of restrictions in Victoria, are hopeful signs that signal the start to industry recovery,” Moldrich says.
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