dooh industry needs standards to breakthrough

DOOH Industry needs Standards to breakthrough

DOOH is growing faster than any other media

DOOH is growing faster growing media

Global DOOH spend is projected to reach 10.65B USD by 2012 (CAGR 14,5%) 2

DOOH AD spend in Western Europe will quadruple to 626M Euro which represent a CAGR of 32% (compare to OOH CAR of 3%) 1

DOOH’s market share: 30% in 2008; 45% in 2013 (US Market) 3

DOOH can generate 3-10 times more revenue than static formats

1 Source: Goldmedia and Screen Digest2 Source: PQ Media, 20093 Source: Veronis Suhler Stevenson, 2009

AD Spend vs Growth Rate

Source: PQ Media, Veronis Suhler Stevenson; 2007 – 2008 advertising revenue growth

Newspap

erRad

io

Consumer M

agaz

ines

B2B Maga

zines

Broad

cast

TV

Cable TV

OOHDOOH

Online/M

obile0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

0.3% 0.4%

4.0% 4.2%6.7%

8.2%

12.0%

27.5%

37.7%

14

6 72

3

8

5

9

AD Spend Share Rank

Challenges of the Industry

DOOH is still fragmented and difficult to book and aggregators haven’t take off

yet

Network reach needs improvement – bigger networks with bigger reach are required, but that means increased investments

Find common standards and metrics to help brands and agencies to understand the media

DOOH Industry need make their homework !

The media must be easy to plan and buy!

Exercise: Plan a European campaign

AggregatorAgencies Networks

AggregatorAgencies Networks

Contact around 300 networks

AggregatorAgencies Networks

Contact around 300 networks

Contact around five aggregators

AggregatorAgencies Networks

Contact around 300 networks

Contact around five aggregators

Consistency of Data is an

issue

AggregatorAgencies Networks

Contact around 300 networks

Contact around five aggregators

Consistency of Data is an

issue

AggregatorAgencies Networks

Contact around 300 networks

Contact around five aggregators

Consistency of Data is an

issue

AggregatorAgencies Networks

Contact around 300 networks

Contact around five aggregators

Consistency of Data is an

issue

Standards are the driver for emerging industries

Associations and Metrics are needed

Year 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 $-

$5

$10

$15

$20

$25

Internet Advertising Revenue ($ Billions)

IAB LaunchedInteractive Advertising

Bureau

Audience Metrics

Launched

Associations and Metrics are needed

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Proj

$-

$100

$200

$300

$400

$500

$600

$700

$800

$900

Cinema Revenue ($Millions) We’re on the right side of history…

Cinema TradeAssoc. Launched

Nielsen StartsCinema Metrics

Indicates downturn with economic recession

OVAB Europe

OVAB Europe was founded 13.11.2008

First independent pan European DOOH association

14 Member companies in seven European countries

Strong co-operation with DPAA (formerly OVAB US)

OVAB US/DPAA

Networks: Suppliers:

Vision – Mission - Strategy

Vision

DOOH media should become a major player in the marketing and media industry.

Mission

Our mission is to raise the awareness and to establish DOOH as media. OVAB Europe is the independent representation and spokesperson for the European digital-out-of-Home industry.

Strategy

1. Continues communication of the DOOH advantages . 2. Education of advertisers and media executives. 3. Setting of industry standards and guidelines

OVAB US Metric Guidlines as Blueprint for Europe

Objectives of Metrics

The OVAB Europe Audience Metrics Guidelines

seek to provide a basic set of comparable metrics

It is the beginning of a process to define

acceptable research methods for their

measurement

It is proposed to use the Average Unit GROSS

Impressions to describe a vehicle in a venue; this

data is derived from the Average Unit Audience

Venue Traffic

Average Unit Audience

(AUA)

Venue Traffic: total number of visits, over a period of

time, occurring in venues

(Media) Vehicle: electronic medium employed in an

advertising campaign

Vehicle Traffic: Number of visits, over a period of

time, with presence in the vehicle zone

Audience: The number and type of people exposed to

a vehicle with an opportunity to see (OTS) the typical

advertising unit.

Vehicle Audience: Vehicle traffic with notice

Notice: Looking at a vehicle (screen) while in the

vehicle zone (the physical area in which a person is

able to see and/or hear a specific, place-based

advertising vehicle)

AUA: the vehicle traffic, with notice, for a unit of time

equal to the typical ad unit

GROSS VENUE TRAFFIC

PRESENT IN THE NETWORK ZONE NOTICE

NETWORK DWELL TIME

AD ROTATIONDURATION

LESS VALUABLE $ MORE VALUABLE $

= AUDIENCE IMPRESSIONS

Calculation Example

Network 4-week Schedule Period

Venue Traffic (000) 193,000

% in Network Zone x 85%

% Notice Network x 58.8%

Network Audience (000) = 96,461

Network Dwell Time/Ad Rotation Duration(5.2/6 = 86.7 , where dwell time and ad rotation duration expressed in mins)

x 86.7%

Audience Impressions (000) = 83,631

Source: Reputable Research Inc. Qualifications/Disclosure form available on request.

Clear, easy to follow

Well sourced with offer of full disclosure

Key Takeaways

The Guidelines establish common language and metrics reached through a consensus

Audience impressions are a higher quality measure and are comparable to other media

Disclosure is key

Guidelines allow for innovation and growth

Elevates this media to the strategic planning conversation

Homework

Consistency and industry standards are needed to secure the growth of the DOOH industry

Advertiser need to know what they buy and what they get

Deliver what the Advertiser bought and proof that to him

Don’t promise what you can’t deliver

Trust, Consistency and Credibility is the Key

Homework

Contact

OVAB Europe e.V.Rosenheimer Str. 145eD-81671 MunichGermany

T: +49 (0) 89 2000 416 80F: +49 (0) 89 2000 416 99E: info@ovab.euW: www.ovab.eu