Kelsey: Digital Out of Home

2,342 views

Published on

Published in: Business
0 Comments
4 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
2,342
On SlideShare
0
From Embeds
0
Number of Embeds
16
Actions
Shares
0
Downloads
130
Comments
0
Likes
4
Embeds 0
No embeds

No notes for slide

Kelsey: Digital Out of Home

  1. 1. ILM:09 Monetizing the Local Opportunity Hyatt Regency Century City Los Angeles, California December 9 – 11, 2009
  2. 2. Digital Out of Home Sonya Rosa, Practice Lead, DOOH, Interpublic Emerging Media Lab Stephen Randall, CEO, LocaModa Adam Bleibtreu, CEO, Retail Media Co. 2 Proprietary and Confidential. Copyright © 2009 BIA/Kelsey. All Rights Reserved.
  3. 3. Digital Out Of Home Trends Rick Ducey Chief Strategy Officer BIA/Kelsey 3 Proprietary and Confidential. Copyright © 2009 BIA/Kelsey. All Rights Reserved.
  4. 4. DOOH Overview There are more than 2,100 outdoor advertising operations in the United States. – The out-of-home advertising industry is heavily concentrated with just three firms earning 85 percent of traditional billboard revenues. – Billboards account for 66 percent of all OOH revenues. – Remaining 15 percent of the market is highly fragmented. – Newer digital out-of-home (DOOH) segment has more types of companies and is much less concentrated and faster growing than the OOH segment. Sources: Outdoor Advertising Association of America (2009). Piper Jaffray (2008) 4 Proprietary and Confidential. Copyright © 2009 BIA/Kelsey. All Rights Reserved.
  5. 5. Overview (cont’d) In the United States, a total of $6.99 billion in OOH 2008 revenues comprises: – 73 percent local ads – 18 percent national ads – 9 percent public service ads OOH is relatively easy to plan and buy since it is so concentrated. Even so, the extensive types of inventory can be confusing. OOH measurement has been a sore point, but there are new and helpful developments. 5 Proprietary and Confidential. Copyright © 2009 BIA/Kelsey. All Rights Reserved.
  6. 6. Overview (cont’d) DOOH, on the other hand, is complicated to plan and buy — the ecosystem is still emerging but the rise of aggregators has facilitated the process. DOOH must get easier to plan, buy and measure in order to reach scale. DOOH by some measures is growing faster than Internet advertising. Recent research underscores the effectiveness of DOOH both as a stand-alone advertising platform and in combination with other platforms, particularly mobile. DOOH has become another “overnight success,” even though some firms have been around for 10+ years. 6 Proprietary and Confidential. Copyright © 2009 BIA/Kelsey. All Rights Reserved.
  7. 7. OOH, DOOH U.S. Revenue Forecast 2009- 2013 DOOH revenues will increase at a compound annual growth rate of 13.5% vs. 1.4% CAGR for OOH from 2009 to 2013. Source: BIA/Kelsey (2009) 7 Proprietary and Confidential. Copyright © 2009 BIA/Kelsey. All Rights Reserved.
  8. 8. What Is Digital Out of Home (DOOH)? •OAAA defines digital billboards and digital networks as follows: Digital billboards are static roadside displays that rotate advertising messages every eight to 10 seconds. Place-based digital networks are often indoors and positioned in commercial areas where groups of people congregate. Place-based digital networks carry both video content and static advertisements. 8 Proprietary and Confidential. Copyright © 2009 BIA/Kelsey. All Rights Reserved.
  9. 9. The DOOH ecosystem has lots of DOOH Ecosystem parts, which need to be better integrated to really drive strong growth. There are lots of different players in the unconsolidated, growing DOOH segment. Planning, buying and measurement tools are sophisticated. Providers are competing for dominance and de facto market standards. Vendors are starting to provide solutions to leverage existing digital workflows used for other media. 9 Proprietary and Confidential. Copyright © 2009 BIA/Kelsey. All Rights Reserved.
  10. 10. Putting Together a DOOH ‘Buy’ 10 Proprietary and Confidential. Copyright © 2009 BIA/Kelsey. All Rights Reserved.
  11. 11. DOOH and Mobile: Going Cross-Platform DOOH can motivate users to text responses as call to action. More than half (53%) of adult texters say they are “likely” to text a response to a compelling DOOH message.* *Source: OTX/SeeSaw Networks (July 2007) 11 Proprietary and Confidential. Copyright © 2009 BIA/Kelsey. All Rights Reserved.
  12. 12. Conclusions DOOH is fast growing, leveraging spending trends toward digital media, hyperlocal, personalization and engagement metrics. The DOOH space is still young, fragmented and complicated to buy. However, with consolidation, partnerships and interoperable platforms, we see the buying process becoming more integrated, which will spur growth. There will be continued M&A activity in the DOOH space with acquirers seeking targets allowing them to roll up vertical networks, which are easier to sell together. 12 Proprietary and Confidential. Copyright © 2009 BIA/Kelsey. All Rights Reserved.
  13. 13. Conclusions (cont’d) VCs which backed Reach Media Group, and operators like National CineMedia may look for other opportunities to aggregate DOOH networks for critical mass to drive sales growth. We will see more technology integration in DOOH- mobile platforms, which will serve as another revenue driver for integrated marketing campaigns. OOH players will increase their DOOH portfolios. DOOH will become increasingly personalized. While OOH facing “highway beautification” policy issues, security and privacy may be the policy challenges ahead for DOOH. 13 Proprietary and Confidential. Copyright © 2009 BIA/Kelsey. All Rights Reserved.

×