The document discusses trends in digital out-of-home (DOOH) advertising. It notes that the DOOH segment is growing faster than traditional out-of-home advertising and internet advertising. DOOH includes digital billboards and place-based digital networks. The DOOH ecosystem is complex with many players and needs better integration. The document also discusses putting together DOOH ad campaigns, integrating DOOH with mobile, and concludes that consolidation in the industry will help drive further growth in DOOH.

1. ILM:09
Monetizing the Local Opportunity
Hyatt Regency Century City
Los Angeles, California
December 9 – 11, 2009

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. Digital Out Of Home Trends
Rick Ducey
Chief Strategy Officer
BIA/Kelsey
3
Proprietary and Confidential. Copyright © 2009 BIA/Kelsey. All Rights Reserved.

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. 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. 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. 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. 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. 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. Putting Together a DOOH ‘Buy’
10
Proprietary and Confidential. Copyright © 2009 BIA/Kelsey. All Rights Reserved.

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. 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. 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.