AUCKLAND, Today: A challenging 2018 media market has not been able to halt the New Zealand outdoor sector’s continuing revenue growth.
After a three-year run of consecutive overall growth, 2018 saw the overall NZ media agency market take a dip of -4.2% in advertising expenditure to sit at $1.02 billion (SMI CYTD).
Outdoor however has outperformed the market and was the only channel to grow in 2018 – up by 0.5% to $138.6m (SMI CYTD).
2018 was also the first year where Digital declined (-3.2%), as did TV (-2.5%, and Radio (-4.1%). Cinema remained static on 9.9% as did Newspapers (22.3%).
According to SMI data the categories with the biggest decline in bookings across all media came from Government (-14%), Food/Produce/Dairy (-18%) and Banking categories (-15%). Outdoor however saw an increase in two of the categories with Banking up by +16% (equating to +$1.5m) and Food/Produce/Dairy increasing their ad-spend by +5% ($616k.
The largest bookings across all media came from Home Furnishing/Appliances (+26%) and Retail (+3%). Notably, bookings in these categories grew even faster across Outdoor (+67% and 40% respectively).
OMANZ chairman Nick Vile said: “It is really gratifying to see outdoor growth in a market where every other platform is experiencing decline. This demonstrates that advertisers and agencies trust in Outdoor’s increasing ability to connect brands with our growing audience.”
“The growth of digital revenue is not at the expense of the static format – digital is a natural layer.”
Looking specifically at the OMANZ members’ performance in 2018, there was growth was even stronger with an increase of +1.9% to $123,666,406 (gross media revenue), as reported via OMANZ members.
OOH Digital revenue continues to increase with significant growth experienced in H2 2018 resulting in a 57% share of revenue to sit at $39,621,310. Total digital spends in 2018 was $66,244,302 (OMANZ members), equating to a 53.6% share of all revenue.
Significantly, the growth of digital revenue has not come at the expense of the static format – digital is a natural layer to add to static to allow additional relevant targeting via location or daypart messaging.
With the Outdoor companies’ continued focus of developing a world class digital offering this number is expected to grow in 2019.
Vile said, “The increase in total quality sites along with the continuing focus on developing digital screens has driven much of this growth. We expect that 2019 will see the Outdoor category continue to grow and develop as all Outdoor companies maintain their focus on smarter targeted marketing and sales thinking, resulting in better quality solutions for agencies and advertisers.
About OMANZ
The Outdoor Media Association of NZ is a not-for-profit, professional, cohesive industry body, representing key Outdoor Media display companies who collectively contribute 87% of total out of home advertising industry revenue.
OMANZ is governed by a board of directors who are all committed and passionate about raising the profile of out of home advertising in the New Zealand market.
Members of OMANZ adhere to a Code of Practice and abide by the regulatory frameworks in which they operate.
OMANZ media display members: Adshel, APN Outdoor, oOh! Media, Media5 and QMS.
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