Out-of-Home Media www.mediacenteronline.com

A New Era for OOHAs with all other advertising media, out-of-home is just as vulnerable to and enhanced by technology. Whatever the current or future effects of technology on OOH media, 2015 revenues increased 4.6%, to a total of $7.3 billion, according to the Outdoor Advertising Association of America (OAAA). 2015’s revenue performance was a significant improvement over 2014’s weak numbers.

The 5.8% revenue increase during Q4 2015 was the best quarter ever, as measured by OAAA, and represented the 23rd consecutive positive quarter since the recession.

OAAA’s 2015 ad spending data also revealed that Miscellaneous Local Services & Amusements was the top category, increasing 9%; followed by Retail, 8%; Government, Politics and Organizations, 6%; Automotive Dealers & Services, 6%; and Financial, 4%.

In addition, more than half of the top 100 OOH advertisers spent as much or more than the overall industry increase of 4.6%. The top 10 advertisers were McDonalds, Apple, Verizon, Warner Bros Pictures, Metro PCS, Coca-Cola, GEICO, Universal Pictures, Chase and Samsung.

It’s also interesting to note that of the top 20 parent company OOH advertisers, six were technology enterprises: Apple, Deutsche Telekom AG, Verizon, AT&T, Google and Samsung.

With technology driving the growth of OOH, it’s important you understand the evolution of the medium not only to speak about it intelligently with your clients, but also to show them how well it complements television.

OOH Ad Spending by Quarter, 2012–2015

Year Q1 Q2 Q3 Q42012 +4.5% +4.3% +4.4% +3.4%

2013 +4.5% +5.0% +5.0% +3.5%

2014 +1.0% +0.8% +1.5% +1.1%

2015 +4.7% +3.8% +4.3% +5.8%

MarketingCharts.com (OAAA), March 2016

Out-of-Home Media www.mediacenteronline.com

OOH BasicsAccording to 2016 OAAA data, there are four primary categories of OOH advertising displays and each with its own sub-categories, making for what is probably the most diverse advertising medium.

1. Billboards – Bulletins, digital billboards, posters, junior posters and walls/spectaculars – 668,239 units

2. Street Furniture – Bus shelters, urban furniture (phone kiosks and newsracks) and digital urban furniture – 49,781 units

3. Transit – Airports, buses, subway & rail, mobile billboards, truckside, taxis/wrapped vehicles and digital transit – 511,950 units

4. Alternative – Arena & stadiums, cinema, digital place-based/video, interior place-based (convenience stores, health clubs and restaurants/bars), exterior place-based (airborne, marine and resort & leisure), shopping malls and digital shopping malls – 1,316,354 units

Despite the increased spending on OOH during 2015, MagnaGlobal and OAAA list it last in market share of all major media at 4.4%. eMarketer measured OOH’s 2015 share as even lower, at 4.0%, and forecasts it will decline to 3.4% by 2020. The decline is a bit misleading, however, since total US media ad spending will increase 28.2% from 2015 to 2020.

Other than television, overall digital and mobile, OOH is the only other advertising medium that will experience an annual increase in dollars spent for 2015 through 2020, according to eMarketer.

BIA/Kelsey data for advertising spending in local TV markets allocate a larger share for OOH: 5.7% during 2015 and increasing very modestly to 5.8% by 2019. Annual OOH local revenue for 2015–2019 mirrors this modest growth, increasing from $8.039 billion to $9.199 billion, respectively.

OOH Total Ad Spending, 2015–2020Year Total2015 $7.31 billion

2016 $7.50 billion

2017 $7.65 billion

2018 $7.76 billion

2019 $7.84 billion

2020 $7.92 billioneMarketer, March 2016

OOH Ad Spending in Local TV Markets by Industries, 2016–2019Industry 2016 2019 % ChangeAutomotive $332.2 M $367.6 M +10.7%

Educational $290.6 M $321.6 M +0.03%

Financial/Insurance

$852.0 M $942.5 M +10.6%

General Services $955.4 M $1.06 B +10.9%

Government/Political*/Religion

$103.9 M $69.0 M -33.6%

Health Care $187.2 M $253.1 M +35.2%

Leisure/Recreation $1.51 B $1.89 B +25.3%

Media $748.3 M $827.9 M +10.6%

Real Estate $290.9 M $321.8 M +10.6%

Restaurant $830.6 M $919.1 M +10.7%

Retail $765.1 M $884.4 M +15.6%

Technology $561.2 M $620.9 M 10.6%

BIA/Kelsey, April 2016* OOH political advertising spikes during election years

Out-of-Home Media www.mediacenteronline.com

Consumer Exposure to OutdoorWith data from The Media Audit, this MEDIACENTER Special Report can explore the demographics of adults, 18+ with heavy exposure to outdoor, which is measured as those driving 200+ miles per week. When comparing four markets – Pittsburgh, PA; Cincinnati, OH; Kansas City, M0/KS; and San Diego, CA – the first interesting comparison is that men represent a significantly larger share of this profile than women in Pittsburgh, Kansas City and San Diego, but the shares are essentially equal in Cincinnati.

In all four markets, adults, 25–64 are those with the heaviest exposure to outdoor, which only makes sense as these are working adults and those involved in shopping and other activities throughout the week.

It should not be surprising, therefore, that adults, 55+ have the largest share of those with light or no exposure to outdoor in these four markets. There are some interesting exceptions, however. For example, in Cincinnati, 42.4% of adults, 25–34, and 40.7% of adults, 35–44, have no exposure to outdoor, although this is the core audience in all four markets. This exception makes sense because the data also shows that 32.5% of them are African American. This group has a higher unemployment rate, especially among the young, and likely owns fewer cars and travels shorter distances to and from work.

In Kansas City, 26.7% of adults, 18–34, have no exposure to outdoor, but all of them are 18–20 years of age. This is another group with a higher unemployment rate, owns fewer cars and many may be college students who don’t travel far from campus.

In San Diego, 48% of adults, 18–34, have no exposure to outdoor, compared to 48.5% for adults, 55+; however, 48.3% of all adults with no exposure to outdoor are in the $15,000–$25,000 annual income bracket. These low-income adults are more likely not to own a car and don’t travel far to work.

An ethnicity comparison reveals expected results, with European Americans representing more than 83% of this profile in Pittsburgh, Cincinnati and Kansas City. San Diego’s more diverse population is reflected in its heavy-exposure-to-outdoor numbers: European Americans, 47.2%; Latino Americans, 29.0%; and Asian Americans, 18.4%.

Heavy Exposure to Outdoor by Gender, 2015 and 2016Market/Data Period Men WomenPittsburgh/Summer 2015 62.2% 37.8%

Cincinnati/Fall 2015 52.3% 47.7%

Kansas City/Winter 2016 61.8% 38.2%

San Diego/Winter 2016 57.5% 42.5%

The Media Audit, April 2016

Heavy Exposure to Outdoor by Age, 2015 and 2016

Age Group Pittsburgh Cincinnati

Kansas City

San Diego

Adults, 25–34

17.4% 17.4% 25.3% 29.5%

Adults, 35–44

18.0% 21.8% 17.6% 20.0%

Adults, 45–49

13.1% 8.7% 12.7% 8.5%

Adults, 50–54

8.9% 13.1% 11.3% 11.5%

Adults, 55–64

17.2% 16.2% 14.7% 9.0%

TOTAL 64.6% 77.2% 81.6% 78.5%

The Media Audit, April 2016

Out-of-Home Media www.mediacenteronline.com

The Digital DimensionThe big story in OOH is how digital technology is adding a new dimension to billboards and signage, first by putting them in motion and second connecting them to the growing digital network among consumers and retailers.

According to eMarketer, digital out-of-home paid media (DOOH), which eMarketer defines as “advertising delivered via Internet-connected digital screens,” will account for 43.9% of all OOH paid media during 2016, or $3.29 billion of $7.5 billion.

Measuring the Effect of Digital BillboardsIn its May 2015 Digital Billboard Study, Nielsen conducted surveys in five US markets – Atlanta, Cincinnati, Minneapolis, Phoenix and Tampa – among adults, 18+ and for 30 OOH advertising campaigns on selected digital billboards.

The demographic profile of the Nielsen study audience closely matches The Media Audit data. Of all digital billboard viewers during the past month in the Nielsen study, 53% were male, 43% were 25–44 years of age and the mean number of miles traveled per week (exposure to outdoor) was 153 miles.

The Nielsen study also found that the #1 action survey participants took after viewing a digital billboard in all five markets was “talked about what was seen with friends and family,” scoring as high as 47% in Cincinnati.

The averages for four other important actions were:

• Searched for the advertiser online – 16%• Visited the advertiser’s Website – 18%• Visited the business advertised – 20%• Made a purchase at a business advertised –14.6%

Digital’s Share of Total OOH Paid Media, 2015–2019

YearOOH Total

DOOH Total Share % Change

2015$7.31 billion

$2.96 billion

40.5% +10.3%

2016$7.50 billion

$3.29 billion

43.9% +11.1%

2017$7.65 billion

$3.67 billion

48.0% +11.6%

2018$7.76 billion

$4.08 billion

52.6% +11.2%

2019$7.84 billion

$4.47 billion

57.0% +9.6%

eMarketer, October 2015 and March 2016

Summary of Findings of Nielsen Study, May 2015Finding PercentAll travelers surveyed noticed a digital billboard during the past month. 75%

All travelers surveyed noticed a digital billboard during the past week. 60%

Digital billboard viewers noticed the message on the screen most or all of the time during the past month.

55%

Digital billboard viewers noticed directional digital billboard ads. 37%

Digital billboard viewers have changed plans to visit the store in the ads. 22%

Digital billboard viewers feel digital billboards are more prominent than online ads. 71%

Digital billboard viewers consider digital billboards a good way to learn about new businesses in the area.

65%

Digital billboard viewers agree digital billboards are a good way to learn about sales and events.

61%

Digital billboard viewers recalled advertising on digital billboards. 82%

Average ad recall for an individual digital billboard campaign 42%

Nielsen, Digital Billboard Study, May 2015

Image source: SurangaSL / Shutterstock.com

Out-of-Home Media www.mediacenteronline.com

Brands and Consumers Like DOOHGeneral Motors is using digital billboard technology to present drivers with personalized messages. On a highway west of Chicago, a billboard has been equipped with a camera that identifies four specific vehicle brands/models according to their front grills. These include Toyota Camry, Nissan Altima, Hyundai Sonata and Ford Fusion.

Once the identification is made, the first digital billboard “communicates” with another 1,000 feet ahead of the driver. The second board presents a message that compares GM’s Chevy Malibu to the competitive brand, displaying the Malibu’s superior features. A similar system is coming to Dallas and New Jersey.

In New York City, the goal of a new program called LinkNYC is to replace more than 7,500 pay phones with free Wi-Fi kiosks and digitally connected signs. Coors Light is using the system to display ads that ask people to open Shazam where they’ll find a list of the app’s most-searched songs in the surrounding neighborhood. A new message then appears with directions to the nearest store that stocks Coors Light.

Airports are already prime locations for OOH advertising, but when the signs are connected via Wi-Fi to travelers’ mobile devices, advertisers can achieve better penetration and drive consumer interactions. According to Nielsen’s October 2015 Airports Study for Clear Channel Outdoor Americas, more than 75% of travelers said they had noticed digital OOH ads at airports. More than 34% then visited the Website or used the app of the advertiser to research the product or service advertised.

Another study (March 2016) from Millward Brown focused on the use of digital OOH technology in the retail environment, the checkout lanes of grocery stores specifically. The technology in these types of digital signs has become quite sophisticated: eye-tracking and scanning note which ads are being viewed and even what part of the sign attracts the most attention. The digital sign device can also match the ad message to the demographics of the consumer viewing it.

One of the biggest benefits that the Millward Brown study revealed is that consumers thought they had spent 35% less time in the checkout line while watching digital signs. Consumers consider waiting in checkout one of the most frustrating parts of the retail shopping experience.

Highlights from Nielsen Airports Study, October 2015Finding PercentConsumers interested in learning about electronics 60%

Consumers interested in learning about hotel and travel services 58%

Business frequent flyers interested in learning about travel amenities and services 64%

Business/Consumer travelers interested in physically interacting with tech products in the airport

73%

Travelers equate airport advertising with high-quality brands and products 59%

Nielsen, Airports Study, October 2015

Content Consumers Preferred to See on In-Store Digital SignsContent PercentProducts on sale 76%

Weather 75%

Future special in-store events 69%

New services in the store 65%

Local community events 64%

Recipe ideas 63%

Venture Beat, April 2016

image source: appleinsider.com

Out-of-Home Media www.mediacenteronline.com

MOOH and MOHBEAs if technology hasn’t burdened us with enough acronyms to digest and understand, OOH media is adding more with the integration of the mobile channel (MOOH) and the integration of mobile and beacons (MOHBE).

Placed, a location analytics company, announced during early February 2016 its “Out-of-Home Attribution,” a service with the capability to connect OOH exposure to in-store traffic. Partners in the new endeavor include Rapport, Horizon, Posterscope, Kinetic, Clear Channel Outdoor and National CineMedia (NCM).

Placed has assembled a network of approximately 800,000 users who have been incentivized to permit Placed to track their location. They are opted in with Placed and its app partner.

The analytics Placed is able to measure and provide have evolved from simple proximity to include the angle, distance and direction of people viewing an OOH message.

Building Towards BeaconsThe technology that Placed has introduced is what Gimbal, a location and proximity-aware mobile engagement platform, calls the first, or geo-targeted OOH, of five stages of integration of mobile, beacons and OOH.

Stage 2 – Adaptive DOOH adds the dimension of time to Placed’s location attribution. With data about mobile users’ location and time, DOOH displays can be customized by dayparts to reach, for example, weekday commuters with messages relevant to the workday or evening ahead, and then provide a different set of messages for those traveling into a city during a weekend.

Stage 3 – Interactive (Mobile + OOH) is technology that provide consumers with an interactive experience with either static or digital OOH media. Within the MOOH environment, there are four interactive opportunities for consumers:

1. Capture a photo of an OOH ad, offer or hashtag and share it on social media.

2. Some OOH ads are “text-message enabled,” allowing consumers to communicate with the ads via SMS.

3. Scan an ad’s QR code via a mobile app.

4. Consumers with smartphones with NFC (near field communication) can simply tap the OOH ad that has been equipped with an embedded NFC sensor.

Stage 4 – Linked (Mobile + OOH enabled by beacons = MOHBE) is capable of capturing even more precise measurements of consumers’ interaction with an OOH ad, such as which consumers were exposed and the length of exposure. In addition, in-store beacons will recognize via the consumer’s smartphone app that he or she was exposed to a beacon-enabled OOH ad. This provides direct attribution between the OOH ad and an in-store visit.

Stage 5 – Unified (MOHBE with Programmatic) allows advertisers to bid in real-time for OOH positions to attract their core target audience(s) or promote a special offer to reach a very specific audience.

(For more information about cinema OOH, please read THE MEDIACENTER Profiler Movie Theaters 2016.)

Sources: Outdoor Advertising Association of America Website, 4/16; MarketingCharts.com Website, 4/16; eMarketer Website, 4/16; BIA/Kelsey Website, 4/16; The Media Audit Website, 4/16; Boardworks Website, 4/16; Ad Age Website, 4/16; Screen Media Daily Website, 4/16; Venture Beat Website, 4/16; Ad Exchanger Website, 4/16; Marketing Land Website, 4/16; Gimbal Website, 4/16.

Updated: April 2016

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