Page 27

THE MEDIA APRIL 2018

Digital out of home: Media on the move, and growing fast There’s no doubt digital out of home is a growing sector that is delivering returns to operators. But it’s a costly business, due to the rapid evolution of the technology used. GLENDA NEVILL finds out what its impact has been on the South African out of home sector. At least R10 million worth of digital out of home screen hardware alone was installed in the ground in every month of 2017. Bruce Burgess, who recently left his position as managing director of Posterscope Sub-Saharan Africa, says that in the core digital roadside billboard space, 13 media owners – four of them newcomers – increased panel count from 105 to 141 during the year. This, he says, means that in a static market, digital out of home (DOOH) investment has increased. And when it comes to what he calls “alternative” DOOH spaces such as point of sale, taxi and bus ranks, stations, bars, retailers, gyms, and salons, the picture is even more impressive: 22 media owners (only two of whom were new to the industry), grew their DOOH networks by 20% to 16 472 (not including any first party digital networks). Interestingly, says Burgess, a significant portion of investment in this category went into upgrading existing screens and reshuffling footprints, rather than just in expanding networks. “This suggests the focus was on optimising audience delivery and network performance, which is more appealing to a client set that is increasingly looking to define and optimise ROI,” he says. PricewaterhouseCoopers (PwC) valued South Africa’s out of home market – the biggest in Africa – at R4.4 billion in 2016, with a growth forecast of 2.7% over the next five years. In terms of DOOH, over a quarter of the country’s OOH revenue is now sourced via digital screens. “This proportion is set to rise to over 40% by 2021 as DOOH becomes ever more prominent in South Africa, generating revenue of R2.0 billion,” PwC reckons in its Entertainment and Media Outlook 2017-2021 report. It’s a view strongly held by Provantage Media Group CEO, Jacques du Preez. “As it becomes increasingly challenging to reach today’s consumer in the fragmented media landscape, the effectiveness of digital out of home advertising has become more significant to brand marketers,” he says. “People are driven and drawn-in by content; they are looking for entertainment and distractions from their day to day. Being able to offer an engaging touchpoint in unique, and at times, captive environments such as airports, commuter nodes or golf courses, presented a great opportunity for us to develop the extensive network to offer ad space,” he says. DOOH, in a way The Media | wagthedog.co.za P 25


THE MEDIA APRIL 2018
To see the actual publication please follow the link above