GLOBAL DIGITAL OUT-OF-HOME MEDIA FORECAST: STATE OF THE INDUSTRY - - PowerPoint PPT Presentation

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GLOBAL DIGITAL OUT-OF-HOME MEDIA FORECAST: STATE OF THE INDUSTRY - - PowerPoint PPT Presentation

Jan 01, 2023 106 likes •337 views

GLOBAL DIGITAL OUT-OF-HOME MEDIA FORECAST: STATE OF THE INDUSTRY Leo Kivijarv, Ph.D. Vice President/Research February 2, 2010 Amsterdam, NL Global Economy Worsened in 09, Particularly Advanced Countries Worst global economy since 1940,

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Leo Kivijarv, Ph.D. Vice President/Research February 2, 2010 Amsterdam, NL

GLOBAL DIGITAL OUT-OF-HOME MEDIA FORECAST: STATE OF THE INDUSTRY

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2 www.pqmedia.com

  • 4%

0% 4% 8%

1969 1979 1989 1999 2009 Worldwide Advanced Countries

Global Real GDP Growth Rates: 1969 to 2009

Sources: PQ Media, International Monetary Fund, Haver Analytics

Global Economy Worsened in 09, Particularly Advanced Countries

Worst global economy since 1940, projected decline of 1.1% in 09

Advanced countries, where majority of DOOH spending occurs, exhibited steeper declines

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3 www.pqmedia.com

Sources: PQ Media, Multiple Sources

Acquired / Merged / Investment Closed

Accent Health Librium TV 19th Hole TV LocalVision Alloy Fitness Network LiteLogic 42 Media MenuLogic Avanti Screen Media (ASG) Magic Media/Fairway Outdoor AdMax Digital Advertising OOH Vision Network Barfly Interactive Networks Music Concierge AdWalker POP Media Bhootan/Outcast (FuelCast) Neo Advertising/Mediamarket Astralis Media Push Pop Media Boondoggle Sports Network Never.no/1-2-1 VIEW BevVision Reactrix Brand Connections Nordic Digital Alliance/IntelliNet Carleton Cinema Advertising Seattle Digital Signage Canadian Health Net (PHSN/Cruise/Medik) OnSite Media Network Circuit City Ad Network SparrowCast Cineboteco Pathware/SVI CompUSA Ad Network StreetBroadcast ClubCom Pixman Nomadic Media Digital Ad Network Tesco TV Community Communication Network PlayNetwork Digital Poster AS Transit TV Network Corporate Image Network Q-vision DrinksTV Vertical Brands Digital Life (ASG/StreetBroadcast) Ripple TV Emba Virgin Megastore Ad Net Digital Media Group Sidetrack Tech In-Store Media Networks Vision Media Group Ek3 Simply Media/Toni&Guy.tv i-vu Limited VJIVE Networks Estates Media Partners Sub.tv/Gym Screen Media Jiffy Lube Network Watchit Media EZ Show Network Subway Link/TV Mulher e Mae Kaleidovision Network The Golf Network Titan Outdoor Advertising Gym Screen Media Vertigo Group Haizou Media Corporation (HMedia) Viewento ICTV (Ivanhoe/Pattison/OneStop) Wall AG IdeaCast Wellness Health Education Net LevelVision/College Bookstore Network Zilo College TV Network

DOOH Shake Out – 75+ Cos. Acquired or Closed in 08 & 09

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4 www.pqmedia.com

Today’s Objectives

1.

About PQ Media

2.

Global Digital OOH Media in Perspective Relative to Media, Ad & Economic Trends

3.

State of Global Digital OOH Media in 2009

4.

U.S. Digital OOH Media Drivers as a Reflection of Global DOOH Trends

5.

Global Digital OOH Media Forecast

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5 www.pqmedia.com

PQ Media is the leading provider of global media econometrics and pioneer of 21st century alternative media research Our experienced management team and analysts are mapping the new frontier of media comprised of 20 media & communications segments and more than 100 sub-segments PQ Media advises top executives at leading media companies, financial institutions, agencies, brands and management consulting firms on real growth opportunities in the fragmented media landscape, based on our accurate media spending and usage forecasts Through our custom research, syndicated reports and proprietary PQ Medianomics™ methodology, clients receive unbiased insights and actionable strategic intelligence they can’t find anywhere else

About PQ Media

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6 www.pqmedia.com

Margin of Error = +/- 2% Global Opinion Leader Panel™ SpendTrack Database™ UsageTrack Database™

PQ Medianomics™

PQ Media’s system utilizes proprietary data collection techniques, algorithmic models and analytical approaches to develop market maps, competitive landscapes, and to forecast outcomes The process also layers the impact of key data and variables, such as economic, demographic, behavioral, technological and regulatory, among others

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7 www.pqmedia.com

PQ Media Global DOOH Media Forecast 2009-2014

Digital Billboards Video Ad Networks Alternative Ambient At-Entertainment In-Entertainment Ambient Foot Traffic At-Retail In-Office Ambient Specialty At-Road In-Retail Ambient Transit At-Transit In-Theater In-Transit

“Simply the best piece of research published in the last few years”

DailyDOOH.com

  • PQM published the 3rd edition of Global Digital OOH Media Forecast in 2009
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Global Digital OOH in Perspective Relative to Media, Advertising & Economic Trends

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9 www.pqmedia.com

Advertising Represented 20% of $2.2 Trillion Global Media Spending

20% 24% 30% 26%

Advertising Marketing Services Consumer End-User Institutional End-User

Share of Global Media Spending by Sector

Source: PQ Media

4.1% 5.3% 5.9% 3.5% 1.3%

0% 2% 4% 6% Advertising Marketing Total Consumer Institutional

Global Media CAGRs: 2004-2009

Advertising has been the slowest growing media sector in the last five years and losing share

Total = $2.24 Trillion (2009 Estimate)

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10 www.pqmedia.com

  • 15%
  • 10%
  • 5%

0% 5% 10% 15% 1994 1999 2004 2009 Global GDP Global Advertising

Global Advertising vs. GDP Growth Rates: 1994 to 2009

Recession Sources: PQ Media, Zenith Optimedia, International Monetary Fund 

Because of secular changes, ad declines have become more severe during recent recessions

Meanwhile, ad rebounds have struggled to keep pace with the economy

Advertising Is a Leading Indicator of Economic Cycles

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11 www.pqmedia.com

Secular Trends Driving Changes in Advertising Spend

– Traditional media losing viewers, listeners and readers – Youth market media usage habits differ from older demographics – Individuals spend more time outside the home – Technology enables consumers to access media all day in all locations – Consumer media multi-tasking means less engagement with content – Ad-skipping technology negatively impacts ad engagement – It’s the economy – brands seek lower CPMs than traditional media – Advertisers have many more advertising and marketing choices – Alternative media becoming easier to buy and offering scale – Providers giving brands/agencies better metrics

Year Total TV RAD NSP MAG BKS FLM MUS VGM INT MBL 1995 2,409 1,095 689 236 116 69 15 155 12 22 2000 2,615 1,137 695 225 114 65 18 171 43 147 1 2005 2,665 1,139 708 194 105 61 26 101 45 258 28 2010 2,700 1,145 717 167 100 59 24 59 60 304 65 Netherlands - Annual Media Usage Per Year (Hours) Source: PQ Media

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12 www.pqmedia.com

5.3% 6.4% 6.5% 6.6% 6.6% 13.7% 21.9% 29.3% 4.0% 0% 5% 10% 15% 20% 25% 30% B2B Cable OOH Radio YPG Mags Digital* NSP TV

*Internet, mobile, videogames, home video, and online ads at entertainment company websites

  • 16.5%
  • 15.2%
  • 17.3%
  • 9.6%

4.0%

  • 9.9%
  • 5.1%
  • 11.3%
  • 8.0%
  • 20%
  • 10%

0% 10% Digital* Cable OOH YPG TV Radio B2B Mags NSP

2009E Share 2009E Growth Rates $454 Billion (2009E)

Global OOH Media within the Advertising Market

Source: PQ Media 

Out of home media is estimated to be the 3rd smallest of nine ad media

Conversely, OOH is projected to be ranked 3rd highest in growth rate

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13 www.pqmedia.com

  • 30%
  • 20%
  • 10%

0% 10% US Canada Brazil Mexico UK Germany France Italy Spain Netherlands Russia Japan China Korea Australia India Global GDP Advertising OOH

2009E Growth Rates

Sources: PQ Media, Zenith Optimedia, Magna Global, WARC. PricewaterhouseCoopers, International Monetary Fund

Impact of Recession on Top Ad Markets & OOH in 2009

Only three countries registered positive ad growth in 2009 – China, India, & Brazil

Out-of-Home growth declined in all but two countries – China & India

Americas EMEA A/PAC

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14 www.pqmedia.com

  • 10%
  • 5%

0% 5% 10% 15% 1997 1999 2001 2003 2005 2007 2009 Global GDP Global OOH

Global DOOH vs. GDP Growth Rates: 1997 to 2009

Recession Sources: PQ Media, Zenith Optimedia, International Monetary Fund 

While OOH slightly outperformed the global economy in the 1990s, digital OOH has driven the out-of-home media market during this decade

Digital Out-of-Home Transforming Global OOH Industry

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Global Digital Out-of-Home Media in 2009

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16 www.pqmedia.com

DOOH Shake Out – Days of Double-Digit Growth End

Global DOOH continued to outperform overall ad industry in 2009, rising 4.7% in 2009

Global DOOH reached $6.69 billion, which represents only 1.5% of the overall ad market

4.7%

  • 1.1%
  • 10.4%
  • 11.2%
  • 15%
  • 10%
  • 5%

0% 5% Traditional OOH Advertising Nominal GDP Digital OOH

2009 Growth Rates

$0 $2 $4 $6 $8 2004 2005 2006 2007 2008 2009

$3.16 $6.69

2004-2009 Spending ($ Billions)

Sources: PQ Media Global Digital Out of Home Forecast 2009-2014, Zenith Optimedia, MagnaGlobal, WARC, PricewaterhouseCoopers

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17 www.pqmedia.com

Digital OOH 23% Traditional OOH 77%

$28.88 Billion (2009)

Despite Deceleration Global DOOH Share Rose 10 Pts in 5 Years

% Share

$24.64 Billion (2004)

% Share

Digital OOH 13% Traditional OOH 87%

Sources: PQ Media Global Digital Out of Home Forecast 2009-2014, ZenithOptimedia, MagnaGlobal, WARC, PricewaterhouseCoopers

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  • 30%
  • 20%
  • 10%

0% 10% 20% 30% US Canada Brazil Mexico UK Germany France Italy Spain Netherlands Russia Japan China Korea Australia India Global

DOOH Advertising Total OOH

2009E Growth Rates

DOOH Outperformed Ad & Total OOH Markets by Country

Most countries registered single-digit growth in DOOH in 2009

China, Australia & India exhibited double-digit gains, while the UK, Spain & Russia declined

Americas EMEA A/PAC

Sources: PQ Media Global Digital Out of Home Forecast 2009-2014, ZenithOptimedia, MagnaGlobal, WARC, PricewaterhouseCoopers

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Global DOOH Forecast: Shakeout to Breakout

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20 www.pqmedia.com

*Internet, mobile, videogames, home video, and online ads at entertainment company websites

  • 2.1%
  • 4.4%
  • 5.1%
  • 6.9%
  • 3.6%

0.0% 0.7% 3.6% 12.6%

  • 10%
  • 5%

0% 5% 10% 15%

Digital* Cable TV OOH Radio B2B YPG NSP Mags

Economic & Ad Environments to Rebound Slightly in 2010

2010E Growth Rates

OOH media is expected to remain flat 2010, trailing digital, cable and TV ad spend

Regulatory constraints remain a concern for the billboard industry

Sources: PQ Media, ZenithOptimedia, MagnaGlobal, WARC, PricewaterhouseCoopers

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21 www.pqmedia.com

Digital OOH to Grow in Mid-Single Digits in 2010

6.1%

  • 3.6%

1.7% 3.1%

  • 5%

0% 5% 10% Traditional OOH Advertising Real GDP Digital OOH

2010E Growth Rates

Sources: PQ Media Global Digital Out of Home Forecast 2009-2014, ZenithOptimedia, MagnaGlobal, Group M, WARC, PricewaterhouseCoopers

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0% 5% 10% 15% 2009 2010 2011 2012 2013 2014

% Growth

Total DOOH Americas EMEA A/PAC

Global DOOH to Reach $10.83 Billion by 2014

2009-2014 Estimated Growth Rates

A/PAC region to continue driving growth

09-14 CAGRs

10.1% 9.7% 8.2% 12.1% Source: PQ Media Global Digital Out of Home Forecast 2009-2014

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Top 10 Trends Driving Global DOOH Going Forward

  • 10. Consolidation – Shakeout, less fragmentation, leading players in each segment
  • 9. Exclusivity – Venue control through partnerships and minimal competition
  • 8. Content – Consumer-focused (lifestyle, localized)
  • 7. Venue-Based Media – Integration of DOOH with other marketing strategies
  • 6. Scale & Cluster – National, regional & DMA footprint with multiple touch points
  • 5. Measurement – Accepted industry common currency (traffic, OTS, IMPs)
  • 4. Attention - Captive/Paused (POD & Dwell) vs. Transient/Motion
  • 3. Targeting – Demographics, psychographics & geotargeting
  • 2. Engagement – Incorporation of interactive online & mobile platforms
  • 1. Proven ROI – Affordable CPMs and growing list of advertiser success stories