Basic HTML Version
14
/
APN
annual report
2011
outdoor
Australian outdoor
advertising revenues
have grown 91% since
2002 for the industry
as a whole. APN has
been a driving force
behind that growth
and is a market
leader in Australia
and New Zealand.
During the year, APn conducted
a strategic review of the
opportunities to expand its
position in outdoor and in
February 2012, APn announced
a joint venture with Quadrant
Private equity to capitalise on
the strong growth prospects
of the sector.
the outdoor advertising market is
one of the fastest growing media
sectors. Product innovation,
particularly digital and interactive
products, will continue to increase
engagement with audiences
and outcomes for advertisers.
mOVe, the outdoor industry-
wide audience measurement
system, is expected to continue
to propel interest with improved
accountability to advertisers and
media buyers. most important
is APn Outdoor’s operational
expertise, reflected in ongoing
and impressive growth against all
of its key financial metrics.
In 2011, the outdoor sector was
up in all of APn’s markets. APn
Outdoor produced an exceptional
result, increasing revenue by
13% and eBIt by 33% on a local
currency basis.
In Australia, APn Outdoor
outperformed the market
across all major categories,
being billboards, posters, street
furniture and transit. the division
won a number of significant
new contracts, including the
Department of transport and
main roads (Qld), external
signage for top ryde Shopping
Centre and Perth Airport’s
internal signage, and was
successful in renewing others,
including WA Buses and Perth
Airport’s external signage. In
melbourne, Adshel won the Yarra
trams street furniture contract,
securing its position as a leading
street furniture supplier in
Australia and new Zealand.
APn Outdoor continues to
pursue digital innovation
opportunities. For example,
APn Outdoor rolled out
sponsored Wi-Fi on melbourne
trams. In 2012, it partnered with
Woolworths to create virtual
supermarkets in prominent train
stations, where customers could
scan images of products and
arrange payment and delivery
using their smart phones. In the
first half of 2012, APn Outdoor
will install Brisbane’s first
digital billboard.
Adshel also took advantage of
digital opportunities, building
on its interactive Create
initiative, where consumers
use their mobile devices to
access additional information
about an advertiser’s product
through digitally-enabled street
furniture panels.
In new Zealand, APn Outdoor
returned impressive results, with
the rugby World Cup providing
good promotional opportunities
for clients. In 2011, APn acquired
OggI billboards and increased
market share over the year. APn
Outdoor successfully integrated
more than 100 new sites into
its inventory, predominantly
in Auckland.
In Hong Kong, APn is the
leading billboard provider
and the sole contractor for
advertising on buses on Hong
Kong Island. A strong outcome
from the banking, finance and
telecommunication sectors
helped deliver good advertising
growth, up 21% in local currency
terms, with solid forward
bookings into 2012. APn’s
Webus initiative, providing free
wireless internet to commuters,
has also been very successful
in that market. the Indonesian
market also produced good
revenue growth, up 12% in local
currency terms.
APN outdoor joint
venture
Key aspects of the APN
and Quadrant Private Equity
joint venture:
– Incorporates APN’s wholly-
owned outdoor businesses and
the 50% interest in Rainbow
Premium Outdoor, Indonesia
– Ownership will be 50%
APN and 50% Quadrant
Private Equity
– To be led by the current APN
Outdoor management team
– APN Outdoor joint venture will
be well capitalised to drive
further innovation and growth