Airtasker (ASX: ART), Australia’s leading online marketplace for local services, has entered a strategic media partnership with oOh!media Limited (ASX: OML), a well-known Australian outdoor media company worth $6 million. This tie up will provide Airtasker access to oOh!media’s extensive network of over 35,000 advertising sites all around Australia, covering billboards, street furniture, airports, office towers, and retail centres.
The partnership is a part of Airtasker’s growth strategy to drive local traffic and brand awareness in Australia for its gig economy platform and app.
“We’re super excited to be partnering with oOh!media in Australia and building on the momentum of our media partnership strategy,” said Airtasker CEO, Tim Fung.
“We believe outdoor media is incredibly impactful because of its unmissable nature in a media landscape which is becoming increasingly crowded.”
The financial structure of partnership between Airtasker and oOh!media issued a 2-year convertible note with a face value of $5 million and a 5.8% coupon rate in exchange for $6 million in oOh!media advertising inventory. At maturity, Airtasker has the option to convert the outstanding principal and accrued interest into ordinary shares at a 10% discount to the company’s 30-day volume-weighted average share price or repay the note and interest in cash.
Fung further added, “Outdoor media also presents some incredibly exciting innovation opportunities for Airtasker with new digital formats and contextually relevant locations enabling us to reach Airtasker customers at the right time and place for when they need something done – like offering furniture assembly or tech installation services in key retail locations.”
“We’ve already seen some incredible results with our $6.7m Channel 4 media partnership in the UK delivering 49% growth in posted tasks in the third quarter of FY24, after launching a little over 6 months ago – so we’re super excited to be building on that momentum with oOh!media in Australia!”
Commenting on the partnership, oOh!media’s Chief Strategy and Transformation Officer, Andrew Every said: “We’re thrilled to be partnering with Airtasker. This collaboration allows Airtasker to leverage the strength of our unrivalled network and sophisticated data techniques to support its mission of driving growth in their trusted community platform.”
This is not the first time that Aistasker has experienced significant growth through media partnerships. Their past collaboration with Seven West media, established them as a household name with 20x increase in Airtasker’s revenue and a 5x ROI for Seven West media over a five-year-period. This model is now being replicated by Airtasker to drive growth in the UK.
In June, 2023, another significant 5 year media-for-equity partnership with Channel 4 in the UK provided them a reach of 47 million UK people which is about 78% of the UK’s population. Following the launch of “Airtasker. Yeahtasker!” television campaign in October 2023, the UK marketplace experienced a hike in user activity, with posted tasks exceeding a 30% increase in the second half of FY24, which is notably considered as the non-peak times in the UK.
Positive growth developments are seen in the US market as well. Airtasker’s US marketplaces reported a 46.3% year-over-year increase in TTM GMV (reaching US$0.5 million) for the first half of FY24, with revenue soaring by 132.4% year-over-year to US$57k. While keeping their momentum in investing, they are actively exploring media tie-ups in the US to accelerate their growth in the US.
Airtasker reported positive free cash flow of $2.5 million for the quarter ending March 31, 2024, alongside a healthy balance sheet with $19.7 million in cash and term deposits, and zero debt.
Sidra is a Business Writer with The Sentiment
Latest posts by Sidra Surmed (see all)
- Interest in captioning tech sees jump in earnings for AI-Media - August 29, 2024
- Despite construction industry challenges, Duratec delivers earnings growth - August 28, 2024
- AI-powered road safety solutions pave the way for Acusensus revenue bump - August 27, 2024
Leave a Comment
You must be logged in to post a comment.