oOh!media makes another media-for-equity play in $5m deal with Airtasker

oOh!media makes another media-for-equity play in $5m deal with Airtasker

Airtasker (ASX: ART) CEO and co-founder Tim Fung.

Online services marketplace Airtasker (ASX: ART) continues to bring in new backers to the shareholder registry in exchange for exposure, with outdoor advertising giant oOh!media (ASX: OML) securing a $5 million convertible note for either share options in the Sydney-based company or cash payment.

In return, oOh!media will provide Airtasker with $6 million worth of outdoor advertising inventory.

Airtasker has often espoused the benefits of other similar deals with the likes of Seven West Media (ASX: SWM) here in Australia and Channel 4 in the UK.

In the first half the company saw a 30 per cent uplift in tasks posted to its UK martketplace following a television campaign launch with Channel 4, replicating a business model that has lifted revenue growth by 20-fold over the past five years in partnership with Seven West Media, which itself has seen a 5x investment return.

Airtasker CEO and co-founder Tim Fung has today revealed that the growth rate in UK tasks posted has accelerated in the third quarter of FY24 to 49 per cent. 

Rather than TV, the approach now is to target a slightly different demographic to get eyeballs from the street.

"We’re super excited to be partnering with oOh!media in Australia and building on the momentum of our media partnership strategy," says Fung.

"We believe outdoor media is incredibly impactful because of its unmissable nature in a media landscape which is becoming increasingly crowded.

"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."

The latest development follows the announcement in May that oOh!media had joined the latest series of the Scaleup Mediafund, contributing to part of a $15 million round worth of inventory that includes other leading media groups such as News Corp (ASX: NWS), NOVA Entertainment, Foxtel, and REA Group (ASX: REA).

Fast-growing vitamins delivery company Vitable, funeral industry disruptor Bare and Hawkes Brewing are the first beneficiaries announced for the fund. 

oOh!media’s chief strategy and transformation officer, Andrew Every, says the company is "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," Every says.

The $5 million convertible note is valid for a two-year period with a 5.8 per cent coupon rate. At maturity, Airtasker has the option to convert the outstanding note and coupon into ordinary shares at a 10 per cent discount to Airtasker’s 30-trading day volume-weighted average share price, or repay the outstanding note and coupon in cash.

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