Pandemic a catalyst for structural change in OOH market: Ströer’s digital OOH revenue up by over 50% in Q4 2021

Die Coronapandemie hat den strukturellen Wandel, insbesondere hin zu digitalen Außenwerbeformaten (DOOH) deutlich und nachhaltig beschleunigt und DOOH erfreut sich bei werbungtreibenden Kunden aufgrund hoher Reichweite und Flexibilität höchster Beliebtheit. Ströer erreichte im Geschäftsjahr 2021 in der digitalen Außenwerbung trotz des 5-monatigen Pandemie-Lockdowns ein Allzeithoch. Im vierten Quartal legte der DOOH-Umsatz bei Ströer um mehr als 50 Prozent zu, das Volumen nationaler

The coronavirus pandemic has significantly accelerated the speed of the structural change that is transforming the advertising market, in particular the shift toward digital out-of-home formats (DOOH), which are proving extremely popular with advertisers because of their impressive reach and flexibility. In 2021, despite a pandemic-related lockdown that lasted five months, Ströer achieved an all-time high in its DOOH business. In the fourth quarter, the Company’s DOOH revenue rose by more than 50%, while the increase in the volume of national advertisers on premium screens was higher still, at almost 90%. Furthermore, the order book for the first quarter of this year is currently twice as big as in the equivalent period of 2021.

At the end of 2021, for the first time, around half of the campaigns run on DOOH advertising spaces were booked via demand-side platforms (DSPs) and trading desks. Thanks to the growing inventory and the continual improvement of the products used for targeting, the medium is now fully integrated into the digital marketing ecosystem. 

Also at the end of 2021, in Düsseldorf, Germany, Ströer brought on stream its one thousandth digital roadside screen. This number is now set to double thanks to a concerted expansion of digital infrastructure driven by strong demand and the securing of building permits. Over the coming 15 months, a further 1,000 digital roadside screens will be installed and integrated into the existing networks. 
At present, Ströer markets a total of around 6,000 premium digital screens – both indoor and outdoor – that are located by roads, in shopping malls, in subway stations, and at train stations and other high-traffic public transportation hubs in 170 German cities. Meanwhile, its digital longtail inventory of smaller screen and ambient touchpoints (e.g., in gyms, at point of sale, or in cinemas), comprising approximately 70,000 units, generate more than 15 billion advertising contacts every month.

“We won a lot of new business in the DOOH segment last year. There was also a further sharp rise both in the rebooking rate and the demand for programmatic DOOH marketing. Given the impact of the digital transformation on out-of-home advertising, we expect our results for 2021 to be at the upper end of our guidance. What’s more, the rapid growth of the highly profitable DOOH segment in the fourth quarter looks set to continue in the first quarter of 2022 – we have made an excellent start to the year. Overall, we believe that we are very well placed to achieve our medium-term financial goals. We have resolved to expand our digital infrastructure at an even faster rate. Prime locations secured on long-term contracts and the building permits obtained over recent years mean that all the right ingredients are in place,” says Christian Schmalzl, Co-CEO of Ströer.

For 2021 as a whole, the Ströer Group’s management had forecast revenue of around EUR 1.6b and EBITDA (adjusted) of between EUR 490m and EUR 510m. The provisional figures for 2021 will be communicated on March 3, 2022, with the annual report published on March 30.

The growth of digital out-of-home advertising at Ströer is one of the topics discussed in an interview with the Company’s Co-CEO Christian Schmalzl in the next edition of the trade magazine Horizont.
 

Disclaimer

This press release contains "forward-looking statements" regarding Ströer SE & Co. KGaA ("Ströer") or the Ströer Group, including assessments, estimates and forecasts about its financial position, business strategy, plans and objectives of management and future business activities by Ströer or the Ströer Group. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could lead to the earnings situation, profitability, performance or results of Ströer or the Ströer Group being significantly different from the earnings situation, profitability, Performance or results that are expressly or implicitly assumed or described in these forward-looking statements. These forward-looking statements are made as of the date of this release and are based on numerous assumptions that may also prove to be incorrect. Ströer makes no representation and assumes no liability with regard to the correct presentation, completeness, correctness, appropriateness or accuracy of the information and assessments contained herein. The information contained in this announcement is subject to change without notice. They may be incomplete or abbreviated and may not contain all essential information relating to Ströer or the Ströer Group. Ströer assumes no obligation to publicly update or adapt the forward-looking statements or other information contained herein, either as a result of new information, future events or for any other reason.