Why APAC Retail Advertising Is Underperforming Despite Market Recovery
Ooh Media's 54% profit plunge despite record revenue exposes structural retail advertising weakness across APAC. New Move 2.0 measurement system aims to restore advertiser confidence in out-of-home...
Australian outdoor advertising operator Ooh Media reported a 54% net profit decline to A$16.9 million in 2025 despite achieving record revenue of A$691.4 million, highlighting growing structural challenges in the retail advertising sector across Asia-Pacific markets.
The company's statutory profit after tax plummeted from A$36.6 million in 2024 to A$16.9 million in 2025, even as group revenue climbed 9% and underlying EBITDA reached A$139.1 million (up 14%). The profit collapse stemmed primarily from a A$30 million impairment related to losing the Auckland Transport contract in New Zealand, which included a A$25 million goodwill write-down.
Retail Advertising Weakness Offsets Airport and Transit Gains
Ooh Media's segment performance revealed stark divergence across its portfolio. Airport advertising surged 29% to A$64.1 million as international travel recovered to pre-pandemic levels, while billboards grew 10% to A$237.1 million and street furniture and rail increased 11% to A$226.4 million.
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However, retail advertising revenue declined 6% to A$124.8 million, representing 18% of total revenue and performing "below expectations" according to new CEO James Taylor. The company holds nearly 50% of Australian retail out-of-home advertising spend with the largest high-footfall network, making the decline particularly significant.
Taylor attributed the retail underperformance to delayed rollout of the Move 2.0 measurement system, scheduled to launch March 9, 2026, which will help advertisers understand real-world asset impact. Office and study segments also fell 7% to A$19.3 million.
Contract Losses and Geographic Headwinds Pressure Growth
The Auckland Transport contract non-renewal eliminated a major revenue stream and contributed to second-half profit declines that offset Australian market gains. First quarter 2026 group media revenue is pacing at only 2% growth, as New Zealand impacts temper Australia's 7% growth.
Ooh Media secured approximately A$90 million in new run-rate revenue from contract wins including Sydney Metro, Waverley Council, and Transurban in Brisbane and Melbourne. However, these additions could not offset the Auckland Transport loss and retail sector weakness.
Capital expenditure increased 21% to A$54.4 million for new digital assets, with 2026 guidance of A$55 million to A$65 million. The company maintains 35% market share in Australia and New Zealand's outdoor advertising sector.
Retail Media Networks Redirect Marketing Budgets Across Asia
The retail advertising decline reflects broader budget shifts across Asia-Pacific markets, where retail media networks are projected to reach US$4.7 billion by 2030 in Southeast Asia alone, growing 11% annually. Research shows 99% of Asia marketers plan to increase retail media network spending in the next 12 months, with retail media already accounting for one in five advertising dollars.
Indonesia leads regional growth with a 13.41% compound annual growth rate representing a 219% surge in retail media networks from 2023 to 2030, followed by Vietnam at 12.37% and Thailand at 11.76%. Australia's retail media is growing 17.2% in 2026, significantly outpacing outdoor advertising growth.
Global outdoor advertising trade declined 12.85% year-on-year in 2025, signaling systemic weakness in traditional static formats. In China, outdoor advertising spend reached ¥57.352 billion (~US$7.9 billion) in the first quarter of 2025 with 6% nominal growth, but adjusted growth was only 4% and video out-of-home net value declined 1.9% due to tighter marketing budgets and macroeconomic uncertainty.
Former CEO Cathy O'Connor received a A$2.68 million departure package, including A$330,000 for unused leave. Ooh Media's contract expiry profile shows 48% of contracts extending past 2030, providing long-term revenue visibility but not addressing immediate retail sector vulnerability.
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