OOH Word On The Street Today
OUTFRONT Media Cuts, Auto Insurance Buys, Another Big 3 Call and Industry Happy Hour & Networking
by Brent Baer, Publisher OOH Today
OOH Word on the Street Today
- Auto Insurance Spend
- OUTFRONT Media Furloughs, Layoffs and Salary Cuts
- Another Big 3 OOH Owner Call Friday
- The OOH Industry Virtual Happy Hour & Networking
Sadly, more bad news to our OOH Today desk.
But first, some positive news.
Auto Insurance Spend
Multiple sources are reporting the largest OOH buyers representing the Auto Insurance Industry are planning and placing buys for as early as May. MAY! It seems the stay at home orders have reduced traffic and accidents so significantly the auto insurance guys have an ‘excess of dollars’ they need to spend.
We recommend you also consider calling on the non big OOH Users and pitch them OOH. Progressive, Liberty Mutual, The General, Farmers, USAA, Safe Auto, National General, as a few examples. They are thriving and it may be the right time to test OOH. Contact these light users of Outdoor, who should be all over our media and traditionally have not been heavy users. Opportunity comes in many forms.
Gone are the days when certain Out of Home news was swept under the rug or the redheaded child was sent to the neighbors when certain friends came to visit. Those days have moved on to retirement and we promise to continue open reporting and dialogue about what is happening in the OOH Industry.
We do not like to share this next information but we know you want to know.
OUTFRONT Media Furloughs, Layoffs and Salary Cuts
We just complemented the Big 3 for not having layoffs in today’s podcast #32 Why OOH Buyers Have Long Memories and as timing has it, new information arrived last evening.
We have been told by 4 solid sources that OUTFRONT Media has furloughed (130) and laid off (70) a significant number of employees, estimated totaling less than 10% of the work force. Additionally, it has been reported, management has taken salary cuts of 50% and 20% respectively, lead by CEO Jeremy Male at 50% and 20% by other top exec managers through out the organization. We also are told, certain regions will now have new direct reports in a reshuffling of VP’s. Furloughs and salary cuts are said to be projected to last 120 days.
The details are not confirmed as we were not able to reach Outfront by post time for confirmation.
If it is true, we give a clap to Male for making a tough decision for the company and his own income. It appears though his work has just begun. The larger markets, particularly those heavy with transit, NYC and DC for examples, are major headaches. The recent agreement with Providence Equity Partners and Ares Management Corporation exchanging approximately 14.8% of outstanding Outfront common shares for $400 million and the addition of a board seat, may be just the start if revenues do not improve significantly and soon.
Will Providence/Ares be up for further enhancement of Outfront’s financial flexibility and liquidity while also bringing additional expertise to the Company? Let’s hope it does not become another Bain Capital/CCO type move which set back our entire Industry. At the time, the competitiveness between the two created a stronger OOH Industry. As Bain tanked CCO, the competition ceased, as did the growth we should have realized.
Another Big 3 OOH Owner Call is Coming Friday
OOH Word on the Street is another one of the Big 3 will be having an all hands call with employees this Friday. Male’s all hands call was after the ‘furlough’ announcements. Let’s hope for the best for the men and women in the trenches at this currently unnamed OOH company.
Unprecedented times are on us. We wish every individual, company and ‘furloughed’ employees well. We hear from companies who are looking for top people. Our OOH Classifieds are free for ‘free agents’. Contact us. We need you back in the game. BillBoard@OOHToday.com
The OOH Industry Virtual Happy Hour & Networking
Geopath and OOH Today are co-sponsoring the 5th Virtual OOH Happy Hour and Networking Event. It is this Thursday, May 7th at 5 PM Eastern Time. It’s a Zoom enabled meet up which has brought together as many as 100+ OOH professionals from both the sell and buy sides. It’s a great opportunity to meet new people and share what is going on in your world.
‘William Board’ and Kym Frank host. Stay for the full hour or just a few minutes. Bring a smile as your camera enabled device brings everyone together in the comfort of their homes.
Register here ⇒Virtual OOH Happy Hour and Networking Event
Be safe out there.