IR Talks to... Tom Goddard, president, World Out of Home Organization

At the World Out of Home Organization’s Global Congress in Toronto earlier this year, a speaker told delegates this could be a new golden age for classic (print) out-of-home (OOH) advertising. So, what does the association’s president think of the claim?

At WOO’s Global Congress this spring, you told delegates that striking the right balance between classic (print) out-of-home (OOH) and digital is one of the keys to sector growth for the medium. What do you consider to be the right balance, and why?

There’s no doubt that digital is growing faster than classic (print) in value terms, but it’s worth remembering that even in the UK - one of the biggest digital OOH markets - at least 40% of OOH revenue is still classic and therefore this constitutes a far greater percentage in terms of actual number of sites. Classic therefore remains an important part of the mix and will continue well into the future.

Classic is a highly creative medium and remains popular with many large advertisers, including tech companies. Apple is a major user for example.

There is also the geographical element. Digital OOH is transforming many large city centres in terms of advertising, but smaller towns and out of town remain important when a client is looking to build brand awareness often complementing and amplifying campaigns in other media. At the same time, it can provide key directional signage for a small business or restaurant. This is particularly the case in larger countries like the USA and India. Classic OOH is a vital part of the ad. landscape here and will remain so for many years to come.

WOO represents key players in the OOH space, but what proportion of your current membership is involved in print for OOH - and would you like to see that change?

A significant number of our members are media owners. Most large OOH players have a foot in both camps, partly reflecting the points made above. So, for example, transport specialists will offer both - you can have digital in, say, a tube station but not, so far anyway, a bus side. These will remain a vital outlet for entertainment and gaming advertisers, for example.

We welcome new members from all sides of the industry. WOO has grown from just over 100 members pre-pandemic to over 150 members today and it’s vital that we continue to be a global forum for the entire eco system.

Is OOH print still losing ground to digital - and do you think that tide can be turned?

2021 figures from our members show that worldwide digital is now about 40% of the OOH market in revenue terms - around $14bn a year, and it’s growing rapidly in many countries - China is a good example.

What the industry needs to do - and this is a priority for the World Out of Home Organization - is get behind classic OOH and remind advertisers, agencies and others that it’s an incredibly powerful medium - one which has hosted and continues to host some of the most famous and best ads ever produced. It shouldn’t be a case of either/or, as both have an important role to play going forward.

What are the main gripes OOH advertisers currently have about print media as opposed to digital - and who’s ‘job’ is it to convince them of print’s value?

Measuring campaign effectiveness is obviously an issue both for classic and digital OOH as it is with any other medium and play out reporting can be more challenging for classic out-of-home, especially when you’re dealing with very large territories where there are many classic posters scattered in rural areas. However, in the UK, Outsmart the industry Association have developed specific standards which need to be supported by all elements of the industry.

In broader measurement terms the OOH industry - and WOO specifically - has made great strides recently in introducing new and more accurate ways of measurement. These were announced at the WOO Global Congress in Toronto and should go a very long way to giving advertisers the assurance they need. Again, all industry players need to buy in to these for them to be successful.

We shouldn’t forget that audience measurement is hardly a done deal for other media. Digital, for example, is bedevilled by accusations that it reaches more bots than people. TV measurement is based on relatively small panels which often under-report the audiences for smaller channels.

The lack of flexibility offered by classic OOH in terms being able to change an ad. very quickly is sometimes seen as a disadvantage but as mentioned previously the constant presence offered to a brand is seen as critically important to an OOH advertiser particularly if complements and amplifies advertising in other media.

In addition, the industry is working on ways of automating the out-of-home buy, whether it be classic or digital OOH. Making out of home easier to buy is the responsibility of the whole OOH Industry but will be critical to our long-term success.

Sustainability is another issue but that’s being tackled energetically by the bigger operators using more sustainable materials. This is arguably becoming a defining issue for OOH, where clients and agencies are signing up to initiatives such as AdNetZero. Out-of-home is undeniably ‘on notice’ in this area and clearly those printing posters have a major responsibility - or you might call it an opportunity - to support the industry in helping to make it a truly sustainable advertising medium.

I understand WOO 2023 will take place in Lisbon next June. Does the print sector need to be more vocal and convincing at that event?

Perhaps - we must continue to promote the positive benefits of classic.

We all need to be more vocal about the benefits of classic OOH and that should involve everyone in the chain. Printers could certainly get on the front foot about the changes they’re making to make the medium more sustainable. Sustainability should be a benefit for OOH in comparison to other media. This will certainly be on the agenda in Lisbon.

Engaging with clients more directly is certainly something we need to do more of. The OOH ecosystem can be complicated, with media agencies and specialist agencies playing important roles but we also need to communicate with clients directly - to persuade them of the value and impact of the medium - and creative agencies. If you look at the Grand Prix winners at the recent Cannes Lions Festival many of them were actually for OOH executions, not just the winners in the outdoor category.

So, yes, we have much to do. But we have a great story to tell.

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