oOh!media Slash Rates As Outdoor Advertisers Dry Up
oOh!media is the worst performer in terms of percentage on the ASX 200 index today, contracting by 4.9%, as advertisers move their spending online during the COVID-19 crisis.
According to a report from the Australian Financial Review, oOh!media has slashed the advertising rates for its billboards by 10-95%.
“Buyers working at media agencies said oOh!mediahad dropped rates by around 30% overall and it had offered two-for-one billboard and panel deals during a period of considerable change and uncertainty in consumer behaviour,” the AFR wrote.
This is being driven by the significant drops in foot traffic at retail locations, public transport stops and CBDs.
According to the Standard Media Index, outdoor ad spending was down 66.1% year-on-year in June 2020.
“All media is going to be value-driven to some extent, and when there is less value in the market, we are saying that if audiences are down, how can we make up those audiences for your elsewhere,” said Brendan Cook, CEO and Managing Director of oOh!media.
“So it’s not ‘discounting’ in the traditional sense. It’s about making up those audience numbers that we can promise in other places.”
In January Cook announced that he would be leaving oOh!media during 2020.