Outdoor giant Ooh!Media’s surprise acquisition of youth media publisher Junkee could be a sign of things to come in the of outdoor space, industry experts tell AdNews.
Ooh!Media acquired an 85% stake in youth publisher Junkee Media over the weekend in a deal worth just above $11 million, with a right to buy the remaining 15% in the future.
Chief executive Brendon Cook tells AdNews the deal is the outdoor media company’s first acquisition of a publishing company and aligns with a strategy to build capability in content creation and data for key audiences.
He says Ooh!Media has been in the content business for a couple of years, launching Q-view, a digital content platform in Qantas Lounges at airports, as well as hijacked.com.au and shortpress.com.au.
“Anyone who thinks digital signs are only about advertising are kidding themselves,” Cook tells AdNews.
“Out of home is designed to reach audiences that other media can't tap into, and we have a solid foothold in the millennials and the hard to reach youth sector.
“This acquisition adds an extra skill-set to the business and we will look to grow this organically.”
Junkee, the publisher of a popular youth culture and news site, music sites inthemix and FasterLouder, and travel title AWOL, is one of Australia's fastest-growing media companies with a strong following in the hard to reach millennial demographic.
Deeper connections
Posterscope managing director Joe Copely says the investment in data and digital infrastructure, although unusual, enables Ooh!Media to offer a deeper connection to audiences.
“From a digital OOH screen content perspective, this acquisition makes most obvious sense in and around their key place-based environments and locations, such as universities, cafes and bars, and could also provide an enhanced engagement in retail, office and airports,” Copely says.
“But it's not just about making the screen networks more engaging and valuable to both brands and audiences. It's also a further push into the area of convergence between mobile and OOH.”
Copely says that content on digital signs and mobile devices - whether paid, owned or earned - is effective in driving conversion to action, whether at physical or virtual check-outs.
Claire Butterworth, MEC national head of investment and activations, tells AdNews the move is "progressive" and provides Ooh! with some "skin in the game".
"This is a positive move for advertisers looking for brand and content engagement," she says.
"I wouldn't be surprised if we saw more of these types of deals, but conversely, outdoor companies may start partnering with a creative company.
"It's really exciting the direction the outdoor industry is heading. The days of 24-sheet billboards being their only selling proposition are long gone. They are diversifying into media conglomerates and it's important they are able to offer more in a competitive environment."
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