Here are the highlights from Jeremy Male’s comments at this week’s JP Morgan Global Technology, Media and Communications Conference.
How this crisis differs from 2008-2009
In 2008 you were dealing in the falloff in macro that was impacting advertiser budgets. Here we’re dealing with the falloff in macro…but also its affecting our ability to deliver an audience…it’s a double impact…advertisers don’t have the budget but we don’t have the audiences…The good news there is those audiences bottomed out…
Will national ads come back faster than local
Yes, I do think it’ll be faster…What we’ve seen with quite a bit of national is that it’s been about shift. It hasn’t been cancelled. It’s been moved from the second quarter into later quarters. The simple example of that would be the Bond movie due to launch in April. That’s been pushed back to later months in the year.
We are more digital as an industry…that’s quite easy to turn off and it’s quite easy to turn back on. And that’s going to help with the rebound of out of home as people get out of their houses.
Good and Bad Sectors
It’s really been the coasts that have been…the most difficult…Right now were’s starting to have good discussions with the beer category, we’re starting to have good discussions with tech, where’s starting to have good discussions with insurance…We’ve had entire sectors switched off. The movie category…Broadway is just not happening.
On the rest of the year
We said we’d see a trough in July and an improving trend thereafter. The July trough has been there since the beginning of March and it hasn’t shifted…I think that will hold. When we look forward into Q3 and Q4 we’re seeing a stepup in pacing.
On the transit business
We’ve extinguished some minimal guarantees…now its essentially a revenue share…in agreement with the MTA we didn’t pay the minimum guarantee in April…we’re working to formalize a working agreement with them…
Sure it may take a little bit longer for audiences to build but New York as a city won’t work without public transit…As soon as I can I’ll be down at Greenwich station…Asia transit numbers are now climbing back considerably. The UK is opening up today…These audiences are going to come back.
There are no supply chain issues.
We produce our small screens that are going into transit…in mainland China. The factory was shut for 6 weeks but is up and running again…in digital billboards we had a number of boards on the high seas as we went into this and the factory remains open.
Mergers and Acquisitions
The industry is reasonably consolidated. You’ve got 70% of the industry between OUTFRONT, Lamar, Clear Channel and JC Decaux…There may be opportunities. We remain focused on…top 25 DMA’s
Insider’s take: The untold story of the covid crisis is how the supply chain has delivered. No shortages of digital billboards, LED’s, board parts or vinyl. Kudos to our vendors for making that happen.
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