Synopsis ofDigital out of home media industry             May 2011
Research aims  Definition and fragmentation  Industry performance  What we can expect in the next two years  What we can l...
Definition andfragmentation
Definition      Out of Home Digital Media is the      frontier between television, the      internet, mobile, interactive ...
2 categories of dooh      Digital Place Based Networks (integrate targeted      entertainment and/or info programming with...
fragmentation                                                       Fragmentation                                         ...
Industry fragmentationPlayers (220)          Types                  Key geographies        Emerging        Categories     ...
Venue granularity                                                                               Further                   ...
Patrick quinn interview from pq mediahttp://www.youtube.com/watch?v=i4Bc-8paLMk
Milestones 2010Feb 2010. Disney +        Feb 2010. LocaModa,       June 2010. PepsiCo,Google bid to invest in   launch DOO...
Milestones 2011Jan. Access 360 Media, digital      Feb. 7-Eleven TV will reach        March. Al Barq installsnetworks in s...
Industry reaching $1bn in revenue DOOH                                    DOOH reaching $1bn                              ...
Pq media report                                                     The PQ Media Global Digital Out-of-                   ...
industry performance
Key markets      The U.S. remained the largest global market, while      China was the fastest growing.      China current...
Digital versus traditional                                                    2013 forecasted                             ...
Dooh spendhttp://www.digidaydaily.com/stories/the-quiet-digital-revolution-in-outdoor-1/
Dooh spend split in us 2010                                                              Digital place-based networks     ...
Venue granularity                                      Monthly DOOH                                      screens viewed by...
Campaigns (RFPs) by industry in Q4 2010                                                                          The telec...
Campaigns (RFPs) by venue in Q4 2010                                                                          Long dwell t...
Source: Nielsen (4th Screen Report, November 2010) - modified to reflect HCMN/Outcast/PumpTop merger.                  Top...
A few Key players – us/europe                  Description                        Locati   Venue / industry             Sc...
A few Key players – asia                 Description                     Location    Venue / industry       Screens       ...
What we can expectin the next two years
strengths     Despite the economic downturn, digital billboards     generated 6-10x more revenue per month than static    ...
weakenesses  No critical mass – TV’s tens of millions vs. DOOHs  thousands  Agencies are seeking methods to better plan an...
opportunities  Audience segmentation (age and sex)  Image-recognition systems for targeting advertising.  Narrowcast netwo...
threats  Content bias towards video content giving TV /  broadcasters an edge.  Competition for other merging media remain...
Industry life cycle                                             Downturn , mergers and                                    ...
Scale not value     “…a lot of M&A activity going on right now, both inside and     outside of our sector. Second, most of...
Mergers, acquisitions, closures42Media Group goes bankrupt                           Muzak goes bankruptAccess 360 Media p...
What we can learn  from others
what we can learn from apple  There can surely be no larger or fragmented market than the  mobile industry. The carriers w...
background     Neo Advertising convinced the three largest retailers to                                                   ...
Neo’s service offer     Developed an advertising network using plasma and     LCD screens, operating mostly in the retail,...
Content extension     After two years of operations, the fact that only     “broadcast” content was available became frust...
digital signage solution providers
These people                                               are likely to buyTop 10 globally                               ...
Why cisco and enQii      “Both are global operations. Cisco is so obviously global,      with operations in almost every c...
Why cisco and enQii      “We predict more and more of the larger installations in      2008 will be device based – there i...
The concepts, ideas, strategies, information, materials, artwork, plans and copy   contained in this document are presente...
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Firestarter dooh research

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In 2010 DOOH was worth US$3bn dollars in advertising revenue per year. Today it is almost 50% split in revenue compared to traditional OOH. This is an industry which has gone through some golden years, and recently shakeups as large networks like RMG buy smaller players to increase screen footprint.

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Firestarter dooh research

  1. 1. Synopsis ofDigital out of home media industry May 2011
  2. 2. Research aims Definition and fragmentation Industry performance What we can expect in the next two years What we can learn from others
  3. 3. Definition andfragmentation
  4. 4. Definition Out of Home Digital Media is the frontier between television, the internet, mobile, interactive terminals and the traditional billboard or poster.http://en.wikipedia.org/wiki/Out-of-home_advertising
  5. 5. 2 categories of dooh Digital Place Based Networks (integrate targeted entertainment and/or info programming with ad pods narrowcast on digital video screens) Digital Billboards/Signs (advertising-only messages through screens equipped with LED or LCD techs)http://en.wikipedia.org/wiki/Out-of-home_advertising
  6. 6. fragmentation Fragmentation in US markethttp://www.coadydiemar.com/html/mm_volume6_2011.html
  7. 7. Industry fragmentationPlayers (220) Types Key geographies Emerging Categories Delivery (4) markets (16)CBS Outdoor Network Americas US / Canada, D. Place- Microtiles Operators Mexico based (DPN)Clear Channel Middle East / Africa LCD Aggregators Brazil D. outdoorNeo Advertising Asia Pacific LED (DBB) Speciality UKZoom media & Europe Organic LED agencies CinemaMarketing Germany Wi-Fi Venues RetailBrand France Cellular 3GConnections Brands office Spain WAPGas Station TV entertainment Italy QR CodesNBC Everywhere transit Russia Mobile appsPremier Retail roadside JapanNetworks (PRN) Bluetooth ChinaRMG Networks SMS South KoreaCemusa Inc NFC AustraliaCNN Airport 3DNetwork India SaaS or ASP?rVue Middle East & AfricaSeesaw NetworksAdCentricity Dynamic, fragmented, and... rapidly evolving space http://dse-365.ascendeventmedia.com/ExhGuide.aspx?p=64#1512
  8. 8. Venue granularity Further granularity can be appliedhttp://www-958.ibm.com/software/data/cognos/manyeyes/visualizations/digital-out-of-home-media-categori-2
  9. 9. Patrick quinn interview from pq mediahttp://www.youtube.com/watch?v=i4Bc-8paLMk
  10. 10. Milestones 2010Feb 2010. Disney + Feb 2010. LocaModa, June 2010. PepsiCo,Google bid to invest in launch DOOH app store signs multi-year,Bus Online in Shanghai. inc Foursquare multibrand agreement with Gas Station TV. April 2010. Nielsen 2010. Revenue increased 2010. 16% DOOH becomes the accepted by10% and DOOH share of growth totaling > audience measurement the OOH market to 9.4%, $6.47 bn. tool. despite bad economy
  11. 11. Milestones 2011Jan. Access 360 Media, digital Feb. 7-Eleven TV will reach March. Al Barq installsnetworks in stadiums, arenas more than 200 million innovative Digital Media Units,and shopping malls, secured shoppers monthly – 4th largest adding 58 new screens in$12mil in capital TV channel – worth $75mil. Khalidiyah Mall April. RMG predict 25% of April. RMG + Blue Bite deploy May. VisionChina expands networks to merge or be first NFC (Near-Field- transport coverage add 3 new acquired in the next 1-2 years. Communication) technology. lines.
  12. 12. Industry reaching $1bn in revenue DOOH DOOH reaching $1bn in revenue held back by fragmentation mobileinternet Years 0 2 4 6 8 10
  13. 13. Pq media report The PQ Media Global Digital Out-of- Home Media Forecast 2011-2015 is the most comprehensive source of strategic intelligence used by leading DOOH operators due to its breadth and depth of data and predictive analytics. It also includes five-year forecasts, five-year histories, and a wealth of other exclusive data, analytics and insights.http://www.mediavataar.com/news.php?id=735http://www.pqmedia.com/globaldigitaloohforecast-2011.html
  14. 14. industry performance
  15. 15. Key markets The U.S. remained the largest global market, while China was the fastest growing. China currently leads the world in the number of digital signage displays deployed and number of NASDAQ IPOs, with the countrys biggest digital signage firm,Focus Media Holding, alone operating more than 120,000 screens.http://knol.google.com/k/how-big-is-the-digital-signage-industry-in-china#
  16. 16. Digital versus traditional 2013 forecasted OOH Ad spend USdooh2010outlookv4ltd-us-100426184926-phpapp02.pdf
  17. 17. Dooh spendhttp://www.digidaydaily.com/stories/the-quiet-digital-revolution-in-outdoor-1/
  18. 18. Dooh spend split in us 2010 Digital place-based networks $3.5 billion in sales Digital billboard and signage 16% – 17% growth in 2011 25% $500mil 75% $1.5bn DPN made 3 times larger than DBB.PQ Media
  19. 19. Venue granularity Monthly DOOH screens viewed by venue 2010.dooh2010outlookv4ltd-us-100426184926-phpapp02.pdf
  20. 20. Campaigns (RFPs) by industry in Q4 2010 The telecommunications industry represented more than 50%http://www.marketingcharts.com/direct/telecom-leads-q4-dooh-rfps-16131/adcentricity-q4-top10-venue-inclusions-by-subcategories-feb11gif/
  21. 21. Campaigns (RFPs) by venue in Q4 2010 Long dwell times, interactivity, social nature and consumer connectivity options within these environments saw growthhttp://www.marketingcharts.com/direct/telecom-leads-q4-dooh-rfps-16131/adcentricity-q4-top10-venue-inclusions-by-subcategories-feb11gif/
  22. 22. Source: Nielsen (4th Screen Report, November 2010) - modified to reflect HCMN/Outcast/PumpTop merger. Top 10 networks Largest DOOH Networks - based on 18+ Visits Total Day Exposures/Vi Company 18+ Visits sit Total Exposure Premiere Retail Networks 127,552,877 0.5 61,535,226 (PRN) HDTV Best Buy 32,136,859 0.7 22,961,442 Outcast/PumpTop/HCMN 22,883,180 1.5 33,668,310 Zoom Fitness 18,277,601 1.8 33,310,401 indoorDIRECT 16,571,970 0.9 14,596,469 GameStop TV 14,754,089 1.2 17,356,880 RMG Fitness 10,467,244 1.5 15,857,875 TargetCast 10,264,337 5.1 52,308,475 The Hotel Networks 9,827,248 2.3 22,667,844 TouchTunes 7,368,487 13.9 102,072,577 Access 360-AMNTV 5,494,428 3.6 19,549,174 AMI 3,441,743 11.4 39,218,884 http://www.coadydiemar.com/html/mm_volume6_2011.html
  23. 23. A few Key players – us/europe Description Locati Venue / industry Screens Reach on RMG networks offers advertisers the ability US In-Flight Entertainment, 200,000 60 million to reach consumers using its Fitness Entertainment, screens viewers every portfolio of place-based digital Point-of-Care, mtvU, Taxi month networks and NYTimes.com National largest digital in-theater US Cinema 17,300 650 million CineMedia network. 170 Designated screens Market Areas (DMAs) (49 of the top 50) Captivate Elevators and lobbies of large North largest in-office network 8,900 Reaches 3mil urban office buildings and Americ in US. Nearly 1,000 screens consumers. suburban office campuses. a buildings in 15 of the top 59 million 20 major metro areas advertising or Designated Market impressions per Area (DMAs) month CBS Outdoor It is the third largest outdoor US, Transit – bus shelter, media owner in revenue Europe underground terms. , UK Premier Retail a network solution provider Retail 64,000 Networks screens. (PRN) 10,000 venues. CNN Airport satellite television network Global Airports 48 Network broadcasting general news, airports weather, stock market
  24. 24. A few Key players – asia Description Location Venue / industry Screens Reach Bus Online Chinas No.1 in-bus digital China Transit - buses mediawith revenue of $US45mil Digital Media advertising solutions for China, Transit - rail 4.3 million Group (DMG) subway systems in China. Shanghai. passengers in Shanghai. Expecting 9 million by 2013. Air Media operates the largest digital China Airports. In-flight. 32 airports, (AMCN) media network in China inc the 15 dedicated to air travel largest in advertising China. 8 airlines, inc the 3rd largest Focus Media Chinas largest Digital Media China office lift lobbies, 165,000 (FMCN) Group shopping districts, screens. and residential 96 cities. complexes Vision China largest out-of-home China Transit 60,000 26 million per advertising networks using screens. month real-time mobile digital 17 cities. television broadcasts Asia Media It operates the countrys Malaysia Transit – buses and 3,000 screens Largest Transit-TV Network. trains Be Digital Subsidiary of Click Grafix, Malaysia Restaurants. Links 40 southeast Asian distributor DOOH, SMS, Web restaurants for technology suppliers including Scala
  25. 25. What we can expectin the next two years
  26. 26. strengths Despite the economic downturn, digital billboards generated 6-10x more revenue per month than static Equipment and infrastructure costs are falling Consumers are spending more time out of the home than ever, twice more today than 30 years ago. Interactivity is promoting longer dwell time. TV is fragmenting decreased effectiveness of traditional advertising and pushing clients to find new mediumshttp://m.clickz.com/clickz/column/1717540/digital-out-home-landscape-brief
  27. 27. weakenesses No critical mass – TV’s tens of millions vs. DOOHs thousands Agencies are seeking methods to better plan and buy DOOH more efficiently. Capex for new new tech impacting profit margins and sales teams too expensive to develop DOOH network. Standardizing audience measurement to compete with other media
  28. 28. opportunities Audience segmentation (age and sex) Image-recognition systems for targeting advertising. Narrowcast networks eg for dental clinics. “Pay-per-Look” where advertiser charged for the number of eye-contacts with the screen. New LEDs with black-base will improve image quality of DOOH.
  29. 29. threats Content bias towards video content giving TV / broadcasters an edge. Competition for other merging media remains stiff (mobile and social). Fragmentation will continue to disrupt revenue until further consolidation occurs.
  30. 30. Industry life cycle Downturn , mergers and acquisitions reduced 70% of DOOH controlled by Ruled by innovation. competitors and increase 10 networks. Further Competitors creating screens. consolidation required. unique value.Gold rush Shakedown Breakout2003-08 2008-11 Post 2012http://11thscreen.com/2010/11/inside-look-at-dooh-forecast-via-pq-media/
  31. 31. Scale not value “…a lot of M&A activity going on right now, both inside and outside of our sector. Second, most of the perceived value of these acquisitions still lies in the pursuit of scale, not synergy.” “To date, companies like Zoom and RMG have gained scale by purchasing smaller network operators (or just their assets) … to allow them to sell onto a much larger number of screens.” “These practices make DOOH more attractive to advertisers who are accustomed to purchasing both reach and frequency in very large numbers.”http://www.wirespring.com/dynamic_digital_signage_and_interactive_kiosks_journal/articles/DOOH_Networks__Will_There_Be_Only_One_-781.html, BillGerba, DOOH Networks: Will There Be Only One?
  32. 32. Mergers, acquisitions, closures42Media Group goes bankrupt Muzak goes bankruptAccess 360 Media purchase Arena Media National CineMedia makes strategic investment inAd-Dispatch acquires Volt Media Danoo (now RMG Networks)AdWalker goes bankrupt NCR acquires NetKey Aug 2008. GoodArtexe SRL acquires Emmerrelogic SRL, becomes NetKey acquires Webpavement time to getDOOH.IT Pixman Nomadic Media goes bankrupt bought.Avanti Screenmedia goes bankrupt PlayNetwork acquires Channel MBally Technologies acquires Coolsigns gaming Primesight acquires Titan Outdoors UK roadsidedivision businessClearOne acquires NetStreams (and just received its Redbus Group acquire assets of StreetbroadcastNASDAQ delisting notification) RMG Networks acquires Pharmacy TVCore Technology merges with Studio 911 Screenred disappears (and presumably goesDanoo acquires IdeaCast bankrupt)Digiadvans acquires Mobile Eco Ads SMART acquires NextWindowDigital Poster AS goes bankrupt Sony acquires ConvergentEDR Media acquires The Golf Network, becomes TargetCast buys Ripple NetworksSports Retail Networks LLC Touchtunes acquires BarflyFujitsu acquire global rights to TELentice (after Verifone acquires Clear Channel Taxi Mediabankruptcy) Vision Media Group goes bankruptJCDecaux acquires assets of Titan Outdoor UK Visser Digital Media acquires CampusLink andKaleidovision acquires Music Concierge LevelVision CollegeLitelogic goes bankrupt WSJ/KPCB make strategic investment in TargetCastMedscreen goes bankrupt Zoom Media & Marketing acquires Sports Display,Mermaid acquires Media Solutions AB ClubCom, GymTV, Allied Medias nightlife networkMillennial Media acquire TapMetrics and Wellness Health Education NetworkMinicom Digital Signage spins out from MinicomMood Media acquires Music Matic http://www.wirespring.com/dynamic_digital_signage_and_interactive_kiosks_journal/ar ticles/M_A_List__Digital_Signage_Mergers__Acquisitions_and_Bankruptcies-769.html
  33. 33. What we can learn from others
  34. 34. what we can learn from apple There can surely be no larger or fragmented market than the mobile industry. The carriers with all their self-interests at stake kept the walls of their gardens high. It took Apple, ironically with a closed operating system, to show the market a way out of its deadlock on one of those fronts. What DOOH needs right now In many ways, the App Store might be more valuable and disruptive than the iPhone. The App Store transformed an industry within 18 months – enabling over 100,000 apps to be developed by November 2009 and over 3 billion downloads worldwide by January 2010 (Source: Apple, Inc).
  35. 35. background Neo Advertising convinced the three largest retailers to Industry contacts “take the leap” into Digital Signage. essential. “As you know, these people are extremely difficult to deal with and convincing them was not an easy task. Now the market really sees the Neo Project as one of Investment of the key ways to institutionalise this media.” capital in delivery.Smr_01_08.pdf
  36. 36. Neo’s service offer Developed an advertising network using plasma and LCD screens, operating mostly in the retail, supermarkets and hypermarkets. Neo operates the largest network in the nation, in the top 40 shopping malls. They also operate in pharmacies and travel agencies.Smr_01_08.pdf
  37. 37. Content extension After two years of operations, the fact that only “broadcast” content was available became frustrating when planning campaigns. “We were not getting some business because some clients had no content for this medium, so we decided to create a service department to help clients make the shift from traditional to digital signage.” Started by creating light flash animations with 8 full Production fees are low time staff working on content development.Smr_01_08.pdf
  38. 38. digital signage solution providers
  39. 39. These people are likely to buyTop 10 globally you Most have offices in US / Europe only Foot Print Asia URL 1. Cisco Au, Ch, HK, India, Indo, JP, KR, http://www.cisco.com MY, PH, SG, TW, TH 2. EnQii China, Hong Kong http://www.enqii.com 3. Broadsign None http://www.broadsign.com 4. C-nario None http://www.c-nario.com 5. YCD None http://www.ycdmultimedia.com 6. ScreenRed None http://www.screenred.com 7. Scala India, Japan http://www.scala.com/ 8. Remotemedia None http://www.signagelive.com 9. TELentice No data No data 10.Stratacache None http://www.stratacache.com/ Published 2008http://www.dailydooh.com/archives/727, Adrian J Cotterill, Editor-in-Chief
  40. 40. Why cisco and enQii “Both are global operations. Cisco is so obviously global, with operations in almost every country you care to think of.” “They also both offer a device / appliance rather than a PC based solution. Whilst not the be all and end all of reasons (we do have several PC based-signage solutions in our top 10) we do think that devices / appliances are a much better way forward for delivering signage solutions.”http://www.dailydooh.com/archives/727, Adrian J Cotterill, Editor-in-Chief
  41. 41. Why cisco and enQii “We predict more and more of the larger installations in 2008 will be device based – there is also a growing trend, especially amongst retailers, to choose device based solutions (ease of management, small footprint, ‘greener’, etc.).” “Another trend that we like is the Software as a Service (SaaS) ASP model much trumpeted by Broadsign (and others of course) who came in third in our top 10.”http://www.dailydooh.com/archives/727, Adrian J Cotterill, Editor-in-Chief
  42. 42. The concepts, ideas, strategies, information, materials, artwork, plans and copy contained in this document are presented in absolute confidence and are the property of Firestarter Pte Ltd and must not be reproduced, adapted, communicated to third parties or in any way used without the express permission of Firestarter Pte Ltd. © Copyright Firestarter Pte Ltd 2011. www.firestarter.com.sg
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