Out of Home reports 44.8% revenue decline
Amidst COVID-19 impact.
18th August 2020
Outsmart, the trade body for the Out of Home (OOH) industry has announced that Out of Home revenue for January to June 2020 declined -44.8% year on year, generating total revenues of £329m. Classic and Digital Out of Home revenues declined by -50.8% and - 38.8% respectively. As a result, Digital’s share of revenue increased to 56% compared to 50% in H1 2019.
The quarterly figures provide greater insight into the story of the sector. Following a -3.1% decline in Q1 2020, the second quarter of 2020 saw a sharp decline as the UK entered lockdown, with OOH revenue down -83.0% from £310 million in Q2 2019 to £53 million in Q2 2020. Digital’s share of revenue increased sharply to 68% vs Q1 2020 (53%).
The figures, collated by PwC, show the significant impact COVID-19 has had on the Out of Home industry as the public rightfully reduced their movement following government advice. In response, Outsmart members donated media space worth over £50 million to support key workers, front line services and build a sense of national unity across Q2.
The challenging market conditions are expected to begin easing in Q3 as the country continues to emerge from lockdown, with early indications that July revenue is recovering versus Q2, as audiences head outdoors during the summer holiday period.
Justin Cochrane, Chair of Outsmart, comments “We knew Q2 was going to be very challenging for Out of Home, as it has been for many sectors. More positively, there is good evidence that audiences and revenues increased throughout July as brands reconnect both locally and nationally outdoors.”
Mark Maitland, Head of Media and Entertainment at PwC, comments "It is no surprise that a sector focused on reaching people when they are out of their homes has been hit so hard by COVID-19. We expect the sector to bounce back over time, given its strong fundamentals and investment in digital, as demonstrated by high growth over recent years prior to the pandemic."
Visit the Outsmart website to download a detailed breakdown of OOH revenue figures.
Note to editors:
About Outsmart:
Outsmart is the UK trade body for the Out of Home (OOH) industry. We collaborate with all parts of the industry to provide a central reference point for our members, aiming to protect and advance their relationships with the advertising community, the public and national and local government.
About PwC
At PwC, our purpose is to build trust in society and solve important problems. We’re a network of firms in 158 countries with more than 276,000 people who are committed to delivering quality in assurance, advisory and tax services. Find out more and tell us what matters to you by visiting us at www.pwc.com.
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