Digital Out-of-Home: The state of the industry today and tomorrow Bill Yackey, DSCE Editor, Digital Signage Today

Technology & Retail Foodservice

What is DOOH? Digital signage Captive audience networks Narrowcasting Digital In-store merchandising Electronic display networks Retail TV Digital Media Networks Place-based digital media Electronic billboards

Digital signage: A piece of the DOOH puzzle DOOH Mobile phone adverts DIGITAL SIGNAGE Elevator networks Stadium/Arena signage Cinema screen adverts Projection adverts Digital Billboards Taxi TV ETC.

Others separate DOOH and digital signage by whether or not the network is ad-supported.

DS/DOOH on the communications continuum Audience >> < Engagement Cellular Internet Digital Out-of-home Billboard Newspaper Radio TV Digital signage In-Store TV The “OuterNet” Location-based Media Narrowcasting Slide created by Lyle Bunn

Where is DOOH? Point of Sale Point of Wait Point of Transit Point of Work

Point of Sale

Point of Wait

Point of Transit

Point of Work

Target Verticals Retail Public Spaces Entertainment Rising Stars: Education, Healthcare Other verticals: Financial/Banking, Gaming, Government, Hospitality, Restaurant, Transportation, Corporate Communications

Retail

Public Spaces

Entertainment

Rising Stars: Education, Healthcare

Other verticals: Financial/Banking, Gaming, Government, Hospitality, Restaurant, Transportation, Corporate Communications

Source: ZenithOptimedia, April 2009 and for Out-of-home 2007 PQ Media

Source: 2007 PQ Media

PQ Media Global DOOH spending is forecast to expand 14.5 percent from 2007 to 2012 to more than $10 billion. EMEA is the second largest DOOH market outside of the U.S., reaching $1.55 billion in 2007, up 21.2%. Western Europe accounts for 90% of the EMEA market.

Global DOOH spending is forecast to expand 14.5 percent from 2007 to 2012 to more than $10 billion.

EMEA is the second largest DOOH market outside of the U.S., reaching $1.55 billion in 2007, up 21.2%.

Western Europe accounts for 90% of the EMEA market.

Shipments of commercial large-format displays (26-inches+) is set to grow 44 percent in 2009.

August 2009 - Approximately 155 million (67 percent of) U.S. residents aged 18 or older have seen a digital out-of-home (DOOH) video display in the past month, at one or more of 17 types of public venues, according to a new study by Arbitron Inc.

Challenges to the DOOH industry Initial CapEx Lack of critical mass – TV’s tens of millions vs. DOOHs thousands Proven metrics for agencies Lack of centralized ad sourcing for DOOH ads

Initial CapEx

Lack of critical mass – TV’s tens of millions vs. DOOHs thousands

Proven metrics for agencies

Lack of centralized ad sourcing for DOOH ads

DOOH media fits into “plateaus” of functionality & investment Multi-region display Dynamic playlist Day-parting Regionalizing ” Local” input Triggered display Multi-use (staff, customer & management) Links to other systems Channel and display group scalability Low op cost at scale Single region, single “group” fixed- loop playout Investment Functionality Slide created by Lyle Bunn

Multi-region display

Dynamic playlist

Day-parting

Regionalizing

” Local” input

Triggered display

Multi-use (staff, customer & management)

Links to other systems

Channel and display group scalability

Low op cost at scale

Industry predictions for the next two years

Industry consolidation Networks: Danoo-Ideacast, Targetcast-Ripple Software companies: presently 300+

Networks: Danoo-Ideacast, Targetcast-Ripple

Software companies: presently 300+

More local and user input Resembles move to Web 2.0 Targeted messaging for more impact Local input windows Social media integration

Resembles move to Web 2.0

Targeted messaging for more impact

Local input windows

Social media integration

More local and user input

“ Pictures are our new language” Content is moving away from words on a screen to images and dynamic video.

Increased mobile display Wireless enabling new applications WRAL supplying digital signage to CAT buses in Raleigh, N.C.

Wireless enabling new applications

WRAL supplying digital signage to CAT buses in Raleigh, N.C.

Budget/Small form-factor displays Wireless photo frames Gaining in retail as POP/POD signage More screens – more impact

Wireless photo frames

Gaining in retail as POP/POD signage

More screens – more impact

Questions? Bill Yackey, DSCE Editor, Digital Signage Today [email_address]