Outdoor advertising leader oOh!media expects the out of home sector to continue to gain market share this year.
CEO and founder Brendon Cook says out of home (OOH) market maintained market share in both Australia/New Zealand while the media market was challenging in 2019.
“In a tough year for media, the overall market declined by an estimated 5%. However, OOH continued to out-perform the broader market and grew by 1% in Australia.
"oOh! expects the out of home sector to continue to gain market share across media formats in FY20."
oOh!media's full year revenue was up 1% to $649.6 million but underlying net profit after tax was down 23% to $37.9 million.
Cook told AdNews that the outdoor industry is in a strong position despte a generally weak advertising market.
"We're not structurally challenged and at the end of the day we did have growth when most other media went backwards," he says.
Since oOh!media listed in 2014 to the end of 2019 the annual compound growth rate has been 9%.
And the share of total media spend has grown to more than 7% in 2019 from 5.5% in 2014. Major ageny spend on out of home has increased to 14.2% 2019 from 9.8% in 2014.
"We certainly expect that out of home will continue to be a structural growth driver and that's confirmed by people like PwC, independent of us," Cook says.
"What we're going through now, like every media, every economy, you have cyclical issues and they can change some volume metrics for a period of time.
"But you've got to look at the bigger picture and the bigger picture is that out of home is not structurally challenged and will continue to grow."
oOh!media's industry growth slide from its full year results presentation:
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