OOH, Covid and the Transit Shelter Business

 

By James Delucia, President and CEO, AR James

Jim Delucia, CEO, AR James

I have been a transit shelter operator in New Jersey for close to 25 years now. Like many in our industry, I view everything through the proverbial Outdoor Advertising lens. You know it is true. If you are like me, you notice every single billboard, creative and crowded sidewalk. If I am someplace where there is a crowd or stuck in a traffic jam, I am contemplating a billboard placement. In mid-March 2020, everybody was feeling the effects of COVID-19.  People were getting sick, some dying unfortunately, and businesses and schools were closing. I was tasked with getting my daughter back home from college mid semester. On that long 12 hour drive from South Carolina back to New Jersey it hit me.  Nobody is out, there are hardly any cars on the road, and nobody is Out-Of-Home.

What does this pandemic mean to my business and my beloved OOH industry? In response to the pandemic, advertisers quickly cancelled contracts, or they pushed campaigns further out into the calendar. New sales became nonexistent due to the fear of declining traffic and impression rates.  It was inevitable. According to Geopath, in the month of March, the average distance a person traveled went from 18 miles per day to less than 10 miles a day, a significant drop in the amount of people out and about.

This year’s OOH outlook does not look promising either.  According to OAAA, 2020 projections are expected fall 11.6%, a sharp decline from 2019 numbers. Negative growth? Wait, what? That is a first, at least for me. Enter month three of shelter in place orders.  Watching the news or surfing social media has become white noise. Federal, state and local governments squabble whether to keep us on lockdown for the good of public health or open up to avoid economic disaster. Some states are moving toward a multi-phase economic opening while other states remain in an emergency lockdown posture. Reports continue to be ambiguous and suddenly everyone online has become an expert in epidemiology, vaccinations and heard immunity. It is a very loud and confusing time for many, especially for me and especially everyone in OOH. Calgon take me away!

I have decided to lower the volume on that noise and rely on my discernment and that good old OOH lens. A lot has happened since all this began in March and it seems we are starting come out of this. Sure, there is still a public health issue and the unfortunate business restrictions, but people are not staying home anymore.  They are starting to move around again, and they are getting out. I am feeling that buzz again; the kind I had before this happened to all of us. Cars and trucks are on the road and traffic seems very close to normal. As per Geopath, the average distance traveled has increased in April by as much as 30% from March. I feel it, I feel it coming back. OOH has been through its share of ups and downs.  This one is a doozy, but we remain Out-of-Home!

We learn from each other.  What’s been your out of home company’s experience dealing with Covid-19.  Email billboardinsider@gmail.com or use the form below.

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