Posterscope USA 2014 OOH Media Landscape


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Increased access to “big data”, the development
of location-based networks, new audience delivery methodologies and real time optimization are among the many advances the OOH industry is enjoying in 2014. In this media landscape Posterscope USA discusses the major changes affecting the OOH industry now, and how OOH’s place in the greater media ecosystem is being redefined.

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Posterscope USA 2014 OOH Media Landscape

  1. 1. / Also visit us on View Our Whitepaper Series on Slideshare As the lines within the media landscape continue to blur, Out-of- Home continues to thrive by evolving with the surrounding media environment. In 2013 outdoor advertising expenditures rose 5.5% for the 16th consecutive quarter (Kantar, 2014) with most of this growth attributed to a significant increase in use of digital signage. The combination of people spending more time out of home, an increase in engagement with digital OOH (DOOH) screens and improved interactive designs is boosting engagement with digital signage and fueling higher spend on DOOH inventory. Because of this DOOH is now the second fastest growing medium, with the average US consumer exposed to 47 minutes per week (PQ Media, 2014). 2014Media Landscape MAJOR PLAYERS OVERALL U.S. MEASURED MEDIA SPEND $124.6BILLION 3.2% The top three Out-of-Home media owners continue to be Lamar, Clear Channel Outdoor, and CBS Outdoor, who manage the majority of billboard inventory across the US. Lamar is the largest media supplier in terms of ad faces, with strong coverage outside of the top 20 markets, concentrating on C&D counties with billboards and 30-sheet posters. In contrast, Clear Channel and CBS dominate the top 20 markets with formats including bulletins, posters, transit and street furniture in major metro areas. All three major players continue to expand their digital footprint across the U.S. Other media suppliers are following suit with rollouts of new digital offerings scheduled in top priority markets throughout the year. JCDecaux will be entering the US digital bulletin marketplace in Chicago in 2014, providing coverage on major arterials through out the market. Titan began the roll-out of digital urban panels in Chicago with 16 locations already installed and up to 100 screens to launch by year end. In Boston, Clear Channel Outdoor continues to convert prime static billboard inventory into digital locations that will be sold in various network offerings while also 2.6% TV 2.9% OOH RADIO NEWS 8.6% Increased access to “big data”, the development of location-based networks, new audience delivery methodologies and real time optimization are among the many advances the OOH industry is enjoying in 2014. By integrating real time behavioral data supplied by location-based mobile ad networks such as xAd, with new audience metrics provided through Source: Winterberry, 2013 Source: OAAA, 2013 OUTDOOR AD SPEND Number of Out-of-Home Displays Billboards Street Furniture Transit Alternative Bulletins 158,868 Digital Billboards 4,400 Posters 165,606 Junior Posters 33,336 Walls/ Spectaculars 4,029 Bus Shelters 49,082 Shopping Malls 30,532 Buses 295,426 Airports 68,560 Subway & Rail 184,078 Truckside/ Mobile 10,593 Taxis/Wrapped Vehicles 46,194 Cinema 17,800 Digital Place- Based 300 networks Arena & Stadiums 1,352   1 TAB Ratings, OOH can now provide more effective planning and buying strategies. These sources offer key data for real time optimization, programmatic buying and predictive modeling, helping to redefine OOH’s place in the greater media ecosystem. 12% 65% 6% 17% Billboards $4,148.5 Street Furniture $415.4 Transit $1,074.1 Alternative $750.3 Source: OAAA, 2014 introducing their newest initiative “Connect” that applies
  2. 2. / Also visit us on View Our Whitepaper Series on Slideshare 2014Media Landscape $- $10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 $60,000,000 $70,000,000 $80,000,000 M cD onalds A pple VerizonSam sung W arnerB ros Pictures AT& T C haseM etro PC S C iti G eico OOHSPEND Source: OAAA, 2014 LOS ANGELES As of April 2013 the LA City Council and City Attorney office ruled that 77 digital billboards owned by Clear Channel Outdoor and CBS Outdoor across Los Angles be turned off for good. AIRPORTS Within the evolving airport environment, traditional dioramas have become obsolete and are being replaced by larger digital units and spectaculars that grab the attention of busy travelers. Key airports seeing major changes include: JFK: In May 2013, Delta Airlines completed their $1.4 billion renovation in JFK’s Terminal 4. The “airline of New York City” revamped the terminal with new dining options, upscale retail stores, faster security checkpoints and an exclusive, state-of-the-art Delta Sky Club that offers sweeping runway views. The airline is expected to move all of its operations to Terminal 4 by 2015. LAX: Los Angeles and LAWA will invest $229 million to revamp the airport’s Terminal 5. LGA:After expanding its capacity at LaGuardia in 2011, Delta Airlines now operates nearly half of all departures at the New York airport. Delta is investing more than $160 million to expand and update Terminals C and D at LGA. MARKET UPDATES 2 ACCOUNTABILITY As of January 2014 TAB now measures the following formats: • Bulletins • Posters • Junior Posters • Walls • Kiosks • Newstands • Transit Shelters • Urban Panels QR and NFC tags to the media infrastructure targeting on-the-go consumers. CBS will focus on a digital build out in the New York transit system and commuter stations with Penn Station and Grand Central being high priority. To extend their footprint in the New York market, Cemusa will launch digital transit shelters in June. In the first quarter of 2014 JCDecaux acquired Cemusa extending their coverage in the United States, Brazil, Spain, Portugal, and Italy. As it relates to the U.S., this will provide JCDecaux with impactful transit shelter and newsstand presence in New York, as well as shelter coverage in the Boston market. Further information regarding the acquisition is still to be determined. TAB OOH Ratings provide measurement for media planners and facilitate audience delivery, “leveling the playing field” for OOH media in the overall media ecosystem. • Receptacles • Backlights • Benches • City Info Panels
  3. 3. / Also visit us on View Our Whitepaper Series on Slideshare 2014Media Landscape LOOKING AHEAD IN 2014 As we progress through 2014, there are 3 major themes to watch: Borrowed Formats & Real Time We will see the continued rollout of digital and call to action technologies across traditional platforms such as bulletins and transit shelters, as well as placed-based digital networks in environments such as gas stations, cinemas and airports. Advertisers and networks can act in “real time”, allowing for creative flexibility and greater interactive usage with social media through services such as Liveposter. Programmatic & Automation The rise of programmatic and automation, along with the use of multiple sources of data, will be key to the future growth of OOH as more advertisers who are comfortable with working through programmatic in online media become exposed to the same level of targeting and accountability in OOH formats. Audience- Based Metrics Metrics are now based on a true ratings system that is consistent in delivering on audience. TAB has been a leader in developing this ratings system, but now both agency and operator must embrace the ratings system and deliver audience-based metrics. This will be a huge factor in the stability and growth of the industry. 1 2 3 TRANSIT The addition of mobile media to TAB Ratings means we will be able to plan transit alongside measured OOH media. Transit measurement data will be available through a tiered release of markets in 2014. NEW METHODOLOGY COVERS MOBILE MEDIA SUCH AS: • Bus Exteriors • Bus Interiors • Ferry Interiors • Mobile Billboards • Rail Interiors • Station Media DIGITAL Though technology advancements have led to the conversion of 4000+ static boards to digital, the metric for measurement remains the same; the impressions provided for a spot in the rotation are the same as the structure. The success of new audience metrics will depend on industry initiative, funding and the approval of new methodology to incorporate dwell time. The TAB’s Digital Study to determine metrics by board by flip commenced in 2013 with results being rolled out beginning Q2 2014. Fundamental to the research is the application of a “noticing score” that incorporates: 1. Board Location Details • Length of spot for structure • Number of spots in rotation 2. Dwell Time By Board • Speed of traffic • Number of feet board is visible 3. The Percent of People Noticing Each Non-Digital Board by Spot at Different Speeds 3