Leading out-of-home advertiser oOh!media has invested almost $100 million in recent years in its digital transformation strategy but CEO Brendan Cook says its printed billboards are here to stay.
“The reason the industry has chosen the word ‘classic’ to describe static, printed billboards is that a word like ‘traditional’ has become aligned with decline, and the fact is that our classic printed billboards are not losing any audience,” says Cook.
“We’re seeing growth in all areas of our business, including classic billboards,” says Cook. “More of our sites will always remain classic and the value of that classic, primary exposure is clearly as valuable as it’s ever been. The key is what they can deliver, and classic is all about the single, big, unmissable proposition.”
Cook estimates the ASX-listed company will have spent $100 million by the end of 2017 to transform itself into a technology media company with its rapid rollout of digital outdoor screens. “We’re a fundamentally different business from where we were even 18 months ago.”
But he points to the recent $6 million acquisition of wide-format printer Cactus Imaging from Opus Group as evidence of oOh!media’s commitment to print.
Cactus has a production base at Silverwater in Sydney where it specialises in large format outdoor posters and banners. Its equipment includes two HP XP 5100’s, the latest XP 5500, two 6-colour XP 2700s and a UV Turbo Jet, as well as a Fiab high frequency welder and a Miller hot air welder.
“We have invested in Cactus because we want to keep evolving and improving our classic billboards,” says Cook. “We’re looking at several areas of innovation including the use of different substrates and other tools like 3D technology, which can allow us to do amazing things with classic signage.”
PricewaterhouseCoopers has predicted the out-of-home advertising sector will be worth more than $1 billion by 2020, with digital expected to make up almost half of the market.