Shares of oOh!Media Ltd (ASX: OML) are back trading above $4.80 after the company provided the market with a positive trading update this week.

Who is oOh!Media?

oOh!Media is a name not recognised by many investors, although you are likely familiar with some of its signs, or its various billboards strategically located above or to the side of some of the country’s most popular roads.

The out-of-home market space is a great industry to be in, generating far stronger growth than various other parts of the advertising market, including free-to-air TV and newspapers. In fact, oOh!Media noted that the out-of-home advertising market now represented 5.8% (as of 2015) of total advertising expenditure in Australia, from just 4.8% in 2013.

This has largely been reflected in the group’s soaring share price, which has risen 94% over the last 12 months. Shares of its rival APN Outdoor Group Ltd (ASX: APO) have also risen 94% in the same time.

Of course, part of oOh!Media’s gain has come about due to the company’s prospectus-beating results in 2015, which were again presented at the group’s annual general meeting on Tuesday.

In 2015, the group’s pro forma revenue rose 7.3% with digital revenue lifting an impressive 47.6%. Pro forma earnings before interest, tax, depreciation and amortisation (EBITDA) also rose 37.1% with an EBITDA margin of 20.6%, while its net profit after tax soared 56.8%.

Outlook

Looking forward, the company is committed to growing its digital revenue, which not only provides the company with new avenues for growth but also has the potential to generate better margins for the group as a whole.

The evolution towards digital will also help with the company’s data strategy which will allow it to use big data analytics from advertisers to get a better return on investment from their advertising campaigns.

As it stands, oOh!Media is guiding for EBITDA growth of between 17% and 25% to between $68 million and $72 million. Given that the company beat its prospectus forecasts by a considerable margin investors will likely be expecting the actual result at the top end (or perhaps even higher) of that range.

It also expects to spend between $20 million and $25 million on capital expenditure for the year, which will likely be used on further digital panels (including roadside billboards) and infrastructure. Between 45% and 50% of total group revenue is expected to be derived from digital in the medium term (from 31.9% now).

Should you buy?

Of course, there are risks to consider as well. To begin with, there is competition to consider, while there is also potential for the advertising market as a whole to take a hit if the economy does experience a significant setback. That could set the company back, taking the share price with it.

Although oOh!Media’s shares aren’t quite as attractively priced as they were 12 months ago, they are still worth a closer look by investors. Strong growth is expected to continue for the industry, and oOh!Media is in a box-seat position to benefit as it continues to invest in digital.

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Motley Fool contributor Ryan Newman has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.