Here’s the chatter about Coronavirus and out of home.
The GO2020 Out of Home Media Conference and Expo:
Group M’s Brian Wieser quoted in Axios:
Outdoor advertising “may be worse off with lower levels of foot traffic in many places.”
William Eccleshare, Clear Channel Outdoor Global CEO on last week’s earnings call:
As reported in Clear Media’s trading update issued this morning, they expect coronavirus could further slow China’s economic growth and negatively impact consumer advertising spend in 2020.
Clear Media Limited Profit warning dated February 27, 2020. Clear Channel Outdoor owns 51% of Clear Media.
The group’s unaudited revenue for the year ended 31, December 2019 was RMB 1,445.0 million which was a 19.8% decline compared to the corresponding period in 2018…The outbreak of the novel coronavirus in 2020 could further slow China’s economic growth, negatively impact customers’ advertising spend and reduce demand for advertising space. Therefore we expect the overall outdoor advertising market may be more challenging in the coming year.
Outfront CEO Jeremy Male on last week’s earnings call:
…all of our revenues are derived in North America which gives us a huge comfort. If we think about our supply chain, there are two main pieces to that, one at digital billboards that come out of Asia, and we actually are not seeing any supply issues there right now. With regards to the light boards that we’re putting out principally into the MTA and other transit systems, we actually have significant stocks, which are going to take us through until summer for the platform inventory. Looking at the on-train inventory, which is, as you know, is part of our build out plans for this year, we think that there may be some delays there. We don’t anticipate that having any marked impacts on our revenue or with our forecasts for the year because actually, it was a pretty slow build that we were anticipating from the mid part of the year. So, look, the situation obviously changes on an almost daily basis, certainly, if you if you look at the market. But from our point of view, we’re pretty comfortable right now as we see it. We’ll be able to weather any coronavirus issues.
Media Resources Jeff Rushton on whether the coronavirus had an impact on the market (from the Billboard Insider podcast)
Thus far no. But we think it will….Regardless of who you are there are some components that come from China. Chinese factories have been shut down for a month now. They are starting up now…When they’re company back to work if there’s one person in that factory who ends up getting the coronavirus the entire factory and all the people will be quarantined for 14 days…so you don’t know where this goes…
Daktronics CEO Reece Kurtenbach in last week’s earning release
In the near-term, orders and sales timing may be impacted by the coronavirus situation (“COVID-19) potentially causing customer order delays and supply chain disruptions.
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