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Media Intelligence : 2008 Intelligence
out of home Adshel – Message in the medium At the end of the day it’s still about delivering the advertising message says SteveMcCarthy, CEO,Adshel. Out of Home has seen strong revenue growth over the last 18 months. What do you attribute this to, and how long can it be sustained? The reality is that less people are being targeted through mass media like TV. You have less people watching TV and therefore less people to connect with as consumers. On top of that, price increases are making the decision somewhat easier for the media buyers to move funds out of some of the mainstream media areas. What you have is major agencies and major clients asking if the money they are spending on traditional media like TV is as eff ective as it has been in the past, and I think the answer they are coming up with more and more is no. You have real issues in the newspaper industry with the impact of online, and radio has really struggled over the last three or four years in terms of the capacity for it to growits share. We put those things together and see a substantial shift in the media landscape. Combine this with the growth of online and what you are seeing in Australia with the traditional media plan is very diff erent to what it was five years ago. There is a shift going on in the mindset of the strategist and planner, as well as the client in terms of “Where do I effectively spend my marketing dollars to deal with my marketing challenge?” From our perspective, you look at the outdoor industry over the last few years and you see an industry that has continued to invest heavily, increasing the quality of the product that it has. What will the new measurement system, MOVE, do for the industry? For the fi rst time it will put OOH level and potentially ahead of the rest of the media players in Australia in terms of the quality of our knowledge of the audience that we can deliver. We don’t think that audience measurement on its own will growour share of the pie. It’s not about one factor being a standout, but we are an industry of $400m worth of revenue and we have spent $5m investing in a measurement tool for the entire industry. It is fair to say wewouldn’t have invested that kind of money unless wewere confi dent that it was going to do positive things for our business. ?There is a shift going on in the mindset of the strategist and planner, as well as the client.? – Steve McCarthy, CEO,Adshel What sort of innovations and new technology can we expect to see from Adshel? The challenge for us is about understanding consumers and marketers as it is about getting new technology in place. At the end of the day,we still have an advertising message to deliver and the bulk of our 11,000 advertising panels that we have around Australia and 3,500 in New Zealand are going to be doing the same thing in two years time that they are doing today. That is the fundamental bedrock of our business and we have invested over $100m in the bus shelters and the tram shelters and the street furniture that we have in the marketplace and that will not change fundamentally. What we will do is look at new ways of engaging customers and engaging consumers at the right place at the right time with some pretty sexy new technology when and if it becomes available. We are not about turning 11,000 panels intowonderful new gizmos because we knowthat what we haveworks.