The out of home (OOH) industry has hit a “step change opportunity” with the time ripe to invest in its position as a “new media” channel, according to Ooh!Media CEO Brendon Cook.
Ooh!Media listed on the ASX on Wednesday for the second time in its company history. It was previously listed until 2012, when it was bought by Champ Private Equity.
However Cook said that with the outdoor industry “in a tremendous position” the time was right for the company to list on the ASX again.
“We need to move quick – this is a step change opportunity within the OOH industry,” Cook said.
“We need to have our infrastructure built, in place and developed over a short three to four year period, of which we're already halfway through, to ensure that when the changes that are occurring in other media in terms of performances and audience decay happens, we are in a position where we can take advantage of that as a medium.”
Cook said that while other traditional media is suffering due to fractured audiences, OOH has the benefit of its audience “not going anywhere.” He said that doesn't mean other traditional media doesn't work, it's just that they're working on a lower base.
He said that advertisers can still book OOH a year in advance knowing that the audience is still going to be there adding “you can't say that about other media including online”.
“The strong audience base and the new tech advances is certainly putting OOH into what I would call the new OOH space,” Cook said.
“It's more akin to where mobile is headed - it's new media. Some people call it a traditional medium but the reality is it's more like a new OOH medium now.”
On its first day of trading, Ooh!Media dropped to a 6.7% discount to its offer price of $1.93, but had already worked its way back up to parity by its second day of trade (Thursday 18 December).
Cook said he doesn't worry about day to day fluctuations in the market.
“What you do worry about is doing the things that fundamentally mean the long-term value of the business will continue to grow,” Cook said.
“We have a very strong business, we have strong plans, we're working strongly on those plans and it's just a fact that the market will eventually work out that OOH is a very different business to what it was before.”
Ooh!Media is listed under the ticker code OML and is trading on a conditional and deferred settlement basis. It is expected to trade on a normal basis on 23 December.
For more news:
The coming of age of digital outdoor in Australia
Ooh!Media to list on ASX today
OOH growth due to “unmissable nature”
Have something to say on this? Share your views in the comments section below. Or if you have a news story or tip-off, drop us a line at adnews@yaffa.com.au
Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day. Need a job? Visit adnewsjobs.com.au.
Have something to say on this? Share your views in the comments section below. Or if you have a news story or tip-off, drop us a line at adnews@yaffa.com.au
Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.