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MEDIA ECONOMY REPORT - RapportWW
VOL. 11

MEDIA
ECONOMY
REPORT

                                     Media Economy Report Vol. 11
WHY OUT-OF-HOME
OUTPERFORMS

                                        Chapter 3
June 2017
MAGNA & RAPPORT
                                        Chapter 2

© 2017 MAGNA GLOBAL USA, Inc.

All Rights Reserved. All property,
including trademarks, are the
property of their respective
owners and have, as applica-
                                        Chapter 1

ble, been licensed for use.
MEDIA ECONOMY REPORT - RapportWW
EVERYONE IS                                                                                                  TABLE OF

                                                                                                                                                                                              Page 3
OUTDOORS!                                                                                                    CONTENTS

                                                                                                                                                                                              Media Economy Report Vol. 11
As the holistic media industry continues to explode

                                                                                                                                                                                         04
                                                                                                             Chapter 1
with new buzz words, terminology, and acronyms,
it’s hard to pen a foreword to any piece without                                                             THE GLOBAL STATE OF OOH
losing the individuality of the media one is
speaking of. After all, we universally seem to claim                                                         OOH attracts 6% of advertising spending and has been remarkably
                                                                                                             resilient in the last ten years, mostly thanks to digital innovations.
the same data-driven audience accuracy, lifestyle
tracking, minimized waste, impact, and ROI drive.
We all also claim to do these things more effi-         that exists between OOH and the evolving sectors
ciently, with better technology, bigger data sets,     of mobile, search, and social, all of which deliver
and more knowledge of those we target.                 a huge percentage of their benefits in the OOH

                                                                                                                                                                                         20
                                                       environment. This allows for integrated,              Chapter 2
Not to criticize any individual sector; we are part    lifestyle-enhancing campaigns.
of this evolution and genuinely of the belief that                                                           REACHING THE CONSUMER OUT-OF-HOME
the future will be media planning that genuinely       The ultimate aim of this report is to challenge
                                                                                                             Significant reach with the targeting and measurement benefits of
integrates all channels. Not just in a strategic       a response to almost any brief that does not
                                                                                                             connected devices will give out-of-home the continued ability to thrive.
planning sense, but in an optimized delivery model     incorporate an OOH element in some way, shape,
that caps frequency media-wide, and takes into         or form. Explosive growth in digital-out-of-home
account a truly combined delivery that capitalizes     (DOOH) has created a new set of diversified
metrics and data across all touch points, from         lifestyle touch points. Plus there is a veritable
broadcast delivery to one-on-one communications.       mountain of mobile-driven audience data that

                                                                                                                                                                                         32
                                                       allows us to accurately track an audience in real     Chapter 3
However, the out-of-home (OOH) media space             time and be relevant and personal in our media
is better positioned to take advantage of these        messaging. All of this points to continued global
                                                                                                             NEW VALUE DRIVERS

                                                                                                                                                                                                 Chapter 3
evolutions than any other. Predominantly, as by        growth for OOH.
                                                                                                             Integrations with smartphones and the growth of programmatic transactions
default, it is where the audience spends a growing
                                                                                                             are making out-of-home an increasingly sophisticated medium.
majority of its time. It is also where they use the    Many of the insights and data points in this
devices and gadgets that can double as accurate        report are extracted from the brand new MAGNA/
targeting, lifestyle, and interactive tools.           RAPPORT Study on the Global State of OOH Media.

                                                                                                                                                                                                 Chapter 2
                                                       I would like to thank Vincent Létang and his team
Over the following pages you’ll see an array of        of analysts in New York as well as the Rapport and
information that demonstrates what we always           Mediabrands colleagues from 20+ markets who
knew: the population at large in any given country     contributed to the study.
spends an increasing amount of time out of the

                                                                                                                                                                                                 Chapter 1
home each passing year, up to 80% of awake             Mike Cooper
hours. We’ll also aim to demonstrate the synergy       Global CEO, Rapport
MEDIA ECONOMY REPORT - RapportWW
Chapter 1

                                                                                                         Page 5
THE GLOBAL
STATE OF OOH

                                                                                                         Media Economy Report Vol. 11
While other offline media categories have been struggling to maintain their
ad revenue over the last five years, OOH has been largely immune.

     KEY
     TAKEAWAYS

1.   OOH advertising is a $28 billion market, controlling a market share of approximately 6% globally
     and 10 to 12% in some markets.

2.   The market share of OOH versus all other media categories (including online) has been stable
     in the last five years, but it has actually increased from 8% to 10% of traditional media ad spend
     (TV, print, radio, OOH).

3.   It is the only traditional medium that has been growing ad sales consistently over the last ten
     years and this is predicted to continue. Revenue will grow by 4% per year in the next five
4.   years to reach $33 billion by 2021.

5.   Investment in digital OOH inventory is the main driver behind OOH resilience, attractive-
     ness, and performance in recent years. Digital inventory has increased by 30% in the last
     two years to reach approximately 300,000 units globally.

                                                                                                            Chapter 3
6.   Although digital is only 5% of the global inventory, it already accounts for 14% of adverti-
     sing revenues. In fact, DOOH already accounts for 22% of revenue in some markets like
     the UK and the global share is predicted to grow to 24% by 2021.

7.   Large format roadside billboards remain the biggest OOH segment in most markets,

                                                                                                            Chapter 2
     but its shares of inventory and revenue are gradually declining. The transit and
     street furniture segments attract more investment from media owners and more
     interest from advertisers.

                                                                                                            Chapter 1
MEDIA ECONOMY REPORT - RapportWW
CONSISTENT GROWTH                                                                                      The global OOH ad market was worth 28 billion
                                                                                                       dollars in net advertising revenues (NAR) in 2016.
                                                                                                                                                                                                  THE MARKET SHARE OF OOH                                                                         Share of OOH                        Share within trad media

10%
                                                       9%                                                                                                                                         The share of OOH in global net advertising revenues                                     If we track the share of OOH within traditional (non-di-

                                                                                                                                                                                                                                                                                                                                                                                               Page 7
                                                                                                                                                                                                  (NAR) has been pretty stable over the last ten years at                                 gital) media categories (linear TV, print, radio,) we find
            7%             7%                           7%                                                                                                                                        around 6%, while the share of print and radio suffered                                  that the share of OOH has been growing over the same
                                                                                                                              6%
                                                             6%
                                                                                                                                                                                                  greatly because of the decline in reach and competition                                 period, from 7% to 10% today, and it will reach 12% by
      5%                                                          5%        5%   5%    5%              5%                                         5%                    5%
                                                                                                                                                                                                  from online media.                                                                      2021.
      2006

                                2008

                                                                                                                                                                        2020
                                                                                 2012

                                                                                                                                                  2018
                                                       2010

                                                                                                       2014

                                                                                                                             2016
 5%
                 4%                                                                                           4%   4%   4%              4%   4%          4%

           3%                                                                                3%   3%                                                          3%   3%             3%   3%   3%
                                                                                                                                   2%
                                                                                                                                                                                                                                                                                                                                                                                    12.0
                                                                                                                                                                                                                                                                                                                                                                           11.5

                                                                                                                                                                                                                                                                                                                                                                                               Media Economy Report Vol. 11
                      1%                                               1%         1%                                                                1%                       1%
                                                                                                                                                                                                                                                                                                                                                                  11.2
                                                                                                                                                                                                  12%                                                                                                                                                   10.7
                                                                                                                                                                                                                                                                                                                                          10.4
                                                                                                                                                                                                                                                                                                                9.6            9.8
       2006      2007             2008     2009         2010       2011           2012       2013       2014        2015       2016      2017      2018       2019       2020          2021
                                                                                                                                                                                                                                                                                    8.7           9.0
                                                                                                                                                                                                                                                                         8.4
                                                                                                                                                                                                  10%
                                                                                                                                                                                                                                            7.9      7.9       8.1
                                                                                                                                                                                                                           7.5     7.8
                                                                                                                                                                                                         6.9      7.1
      2006

                                2008

                                                       2010

                                                                                 2012

                                                                                                                                                  2018

                                                                                                                                                                        2020
                                                                                              -1%

                                                                                                       2014

                                                                                                                             2016
                                -1%
                                                                                                                                                                                                   8%
                                                                                                                    -2%                  -2%                   -2%                      -1%

                                                                                                                                                                                                                           6.7     6.8      6.7
                                  -4%                                                                                                                                                              6%
                                                                                                                                                                                                                  6.5                                6.5       6.5       6.5        6.5
 5%                                                                                                                                                                                                      6.4                                                                                      6.4           6.4

                                                                                                                                                                                                                                           2009
                                                                                                                                                                                                                                                                                                                               6.2

                                                                                                                                                                                                    2005
                                                                                                                                                                                                                                                                                                                                              6.2        6.2

                                                                                                                                                                                                                         2007

                                                                                                                                                                                                                                                                                2013

                                                                                                                                                                                                                                                                                                         2015

                                                                                                                                                                                                                                                                                                                                                                                   2021
                                                                                                                                                                                                                                                              2011

                                                                                                                                                                                                                                                                                                                                                                2019
                                                                                                                                                                                                                                                                                                                                                                   6.1

                                                                                                                                                                                                                                                                                                                                      2017
                                                                                                                                                                                                                                                                                                                                                                            6.0         6.0
                                                                                                                                                                                                   4%

                                                                                                                                                                                                   2%
10%
                                         -10%
                                                -11%
                                                                                                  All Media             Traditional Media (TV, Print, Radio, OOH, Cinema)                   OOH     0

                                                                                                                                                                                                         2005    2006     2007     2008     2009     2010      2011      2012       2013          2014          2015           2016           2017       2018      2019     2020        2021
                                           -13%

 MARKET SHARE                                                                                                                                                                                     A $30 BILLION                              OOH is the only traditional media category that has been growing
                                                                                                                                                                                                                                             consistently over the last ten years. MAGNA and RAPPORT forecast that
                                                                                                                                                                                                  MARKET IN 2017

                                                                                                                                                                                                                                                                                                                                                                                    $26bn
                                                                                                                                                                                                                                             it will grow by almost 4% in 2017 to reach $30 billion.
 Globally, OOH attracts 6% of ad

                                                                                                                                                                                                                                                                                                                                                                          $26bn
                                                                                                                                                                                                                                                                                                                                                                $26bn
                                                                                                                                                                                                                                                                                                                                                     $25bn
 dollars, however some markets

                                                                                                                                                                                                                                                                                                                                      $25bn
                                                                                                                                                                                                        Static           Digital

                                                                                                                                                                                                                                                                                                                       $25bn
                                                                                                                                                                                                                                                                                                        $22bn
 display a much higher market

                                                                                                                                                                                                                                                                                          $24bn
                                                                                                                                                                                                                                                                           $24bn
                                                                                                                                                                                                                                                                 $23bn
 share. Among those are the

                                                                                                                                                                                                                                   $24bn
                                                                                                                                                                                                                          $25bn

                                                                                                                                                                                                                                                      $22bn
                                                                                                                                                                                                                 $23bn
                                                                                                        15%

                                                                                                                                                                                                                                             $22bn
                                                                                                                                                                                                        $22bn
 Philippines, Singapore, France,
 Russia, and Thailand.

                                                                                                                                                                                                                                                                                                                                                                                    $8bn
                                                                                                                                                                                                                                                                                                                                                                          $7bn
                                                                                                                                                                                                                                                                                                                                                                $6bn
                                                                                                                                                                                                                                                                                                                                                     $5bn
                                                                                                                                                                                                                                                                                                                                      $5bn
                                                                                                                                                                                                                                                                                                                       $4bn
                                                                                                                                                                                                                                                                                                        $3bn
                                                                                                                                                                                                                                                                                          $3bn
                                                                                                                                                                                                                                                                           $3bn
                                                                                                                                                                                                                                                                 $2bn
                                                                                                                                                                                                                                                      $2bn
                                                                                                                                                                                                                                             $1bn
                                                                                                                                                                                                                                   $1bn
                                                                                                                                                                                                                          $1bn
                                                                                                                                                                                                        $0bn

                                                                                                                                                                                                                 $1bn
                                                                            12%

                                                                                                                                                                                                                                                                                                                                                                                                  Chapter 3
                                                                                                                                      11%                                                               2005      2006     2007     2008     2009      2010      2011       2012          2013           2014          2015           2016           2017       2018      2019      2020

                                                                                                                                                               10%
                                         9%                                                                                                                                                                                                                   7.1B
                                                                                                                                                                                                  THE WORLD‘S LARGEST

                                                                                                                                                                                                                                                                                                                                                                                                  Chapter 2
                                                                                                                                                                                                  OOH MARKETS                                                                      4.7B
                                                                                                                                                                                                                                                                                                          3.1B
                                                                                                                                                                                                  The largest market is the US,                                                                                                       1.3B                   1.1B                 1.1B
                                                                                                                                                                                                  with approximately $7 billion

                                                                                                                                                                                                                                                                                                                                                                                                  Chapter 1
                                                                                                                                                                                                  in 2016, followed by Japan,
                                                                                                                                                                                                  China, France, and Germany.
                                THAILAND                    SINGAPORE                       PHILIPPINES                      FRANCE                    RUSSIA                                                                                                 U.S.              Japan                     China                      France                  Germany               UK
MEDIA ECONOMY REPORT - RapportWW
DIGITAL AD SALES GROWTH WILL                                  Driven by growing inventory and increasing interest
                                                                                                                                                                                           from brands, DOOH ad sales have been growing by 14%
                                                                                                                             REMAIN IN THE DOUBLE-DIGITS                                   per year in the last five years. MAGNA predicts 14%

                                                                                                                                                                                                                                                         Page 9
                                                                                                                                                                                           CAGR over the next fi ve years.
                          DOOH                                                        DOOH
                                                                                                                             OVER THE NEXT FIVE YEARS
                         DRIVERS                                                   INHIBITORS                                                   40%

                                                                                                                            40%

                                                                                                                                                                            33%

                                                                                                                                                                                                                                                         Media Economy Report Vol. 11
                                                                                                                                                                     30%
                                                                                                                                                                                   29%
                                                                                                                                         27%
                                                                                                                            30%                        26%

                                                                                                                                                                                                        19%
         • Screen costs going down while reli-                        • Stricter urban regulation being im-
                                                                                                                            20%
                                                                        plemented, banning digital on road-                                                                               15%    15%                  15%                  15%
           ability and duration keep improving.                                                                                                                                                                14%           14%    14%
                                                                        side billboards.                                                                                                                                                          12%
         • New opportunities for cross-screen
           planning.                                                  • Installation cost remains an issue                                                    8%

                                                                        for non-premium locations, local                    10%
         • Retail gradually concentrating into
                                                                        media owners, and emerging mar-
           indoor malls.
                                                                        kets.                                                     0%
         • Street Furniture business model still
                                                                      • Some brands still reluctant to share
           under-developed in many markets.
                                                                        DOOH loops with other brands.                             2005   2006   2007   2008   2009   2010   2011   2012   2013   2014   2015   2016   2017   2018   2019   2020   2021
         • Transit companies looking for non-
           fare revenues.
         • Dayparting and superior targeting
           potential still under-used in many
           markets.
                                                                                                                             DIGITAL SHARE TO
                                                                                                                             REACH 24% BY 2021                                                                                                    24%
                                                                                                                           25%

                                                                                                                                                                                                                                           22%

OOH SPEND PER YEAR PER CAPITA                                                    In Japan, advertisers spend a record
                                                                                 $38 per year per capita on OOH adver-
                                                                                                                            20%                                                                                              18%
                                                                                                                                                                                                                                    19%

  $38                                                                            tising, compared to $22 in the U.S.                                                                                                  16%
               $36

                                                                                                                                                                                                                                                            Chapter 3
                                                                                                                                                                                                               14%
                                                                                                                            15%                                                                         13%

                                                                                                                                                                                                 11%
                                                                                                                                                                                          10%
                                                                                                                                                                                   9%
                           $24                                                                                              10%                                             8%
                                       $22

                                                                                                                                                                                                                                                            Chapter 2
                                                                                                                                                                     6%
                                                   $21
                                                                                                                                                              5%
                                                             $18                                                                                       4%
                                                                           $17                                               5%                 3%
                                                                                                                                  2%     2%
                                                                                        $15         $14         $12

                                                                                                                                                                                                                                                            Chapter 1
                                                                                                                                                              SHARE OF DIGITAL IN TOTAL OOH AD SALES
                                                                                                                                  2005   2006   2007   2008   2009   2010   2011   2012   2013   2014   2015   2016   2017   2018   2019   2020   2021
 Japan       Singapore    Australia    U.S.        France   Belgium         UK         Norway     Germany    Netherlands
MEDIA ECONOMY REPORT - RapportWW
Billboard                                                     Street Furniture                                          Transit                                              Malls                                                           Place Based

                                                                                                                                                                                                                                                                   Page 11
  OOH SEGMENTS: AD SALES                                                                                                                   DIGITAL THRIVES IN INDOOR                                       REVENUE BY SEGMENT:

                                                                                                                                                                                                                                                                   Media Economy Report Vol. 11
  ACROSS MARKETS                                                                                                                           ENVIRONMENTS                                                    BILLBOARDS KEEP THE LEAD
• The distribution of ad sales across segments is highly varied,     • Street furniture generates a large share of ad sales in France    • The share of digital inventory and digital revenue varies
                                                                                                                                                                                                           BUT OTHER ENVIRONMENTS
  depending on industrial history, geography, and regulation.          (where the business model was created by JCDecaux fifty              across market segments and environments.                        GROW FASTER
                                                                       years ago) and neighboring markets Germany and Spain.
• Large format roadside billboards are the number one seg-                                                                               • Digital revenues have already reached 30% or more in
  ment in most markets (dominant in the US where driving is          • Transit is dominant in China and Japan where public trans-          indoor environments like malls and the place-based seg-       • Globally, roadside billboards are the number one seg-
  the primary commuting mode, as well as Russia and India).            portation carries huge numbers of workers daily.                    ment (gyms, offices, taxis, arenas, petrol stations, etc.).      ment of OOH advertising, representing 45% of global
                                                                                                                                                                                                           NAR.
                                                                                                                                         • It is close to the general global average of 14% for ro-
                                                                                                                                           adside billboards and transit, although it can be much        • Street furniture is second with 31% of revenues.
                                                                                                                                           higher in some sub-segments (airports).                         Transit is third with 14% of ad sales.
                                                                                                                                         • It is below average for street furniture but MAGNA ex-
           AVERAGE                                  U.S.                          JAPAN                                 UK                                                                               • MAGNA and RAPPORT anticipate that street furniture
                                                                                                                                           pects that segment to catch up in the future as long-term
                                                                                                                                                                                                           and transit will grow faster than billboards in the
                                                                                                                                           contracts are renewed between media owners and muni-
                                                                                                                                                                                                           next five years.
                                                                                                                                           cipalities and they almost systematically trigger a jump in
                                                                                                                                           digital investment.                                           • As a result, the share of billboards will decrease to
     45%   31%   14%   4%    6%         69%   18%    6%    2%   5%        46%   39%   9%    3%   3%         27%   40%   17%   11%   4%                                                                     just 41% by 2021 but will remain the number one seg-
                                                                                                                                                                                         49 %              ment in most markets.

                                                                                                                                                                                                                       6%                          7%
                                                                                                                                                                                                                       4%                          4%
                                                                                                                                                                                 37%
                                                                                                                                                                                                                      14 %                        15 %
             CHINA                             FRANCE                           GERMANY                              INDIA

                                                                                                                                                                                                                                                                      Chapter 3
                                                                                                                                                                                                                      31%
     14%   60%   6%    0%    19%        31%   26%   38%    5%   0%        29%   16%   44%   8%   3%         65%   22%   10%   2%    1%                                                                                                            34 %

                                                                                                                                                                                                                                                                      Chapter 2
                                                                                                                                                         14 %                                    14 %

                                                                                                                                              10 %
                                                                                                                                                                     8%                                               45 %                        41%
           AUSTRALIA                           CANADA                             RUSSIA                            SPAIN

                                                                                                                                                                                                                                                                      Chapter 1
                                                                                                                                             Billboard   Transit    Street       Malls   Place   Total                 2016                        2021
     41%   16%   20%   20%   4%         46%   22%   24%    2%   6%        54%   25%   9%    6%   6%         23%   26%   38%   7%    6%                             Furniture             Based
MEDIA ECONOMY REPORT - RapportWW
OOH INVENTORY                                                                               710K
ACROSS MARKETS

                                                                                                                                                                   Page 13
                                                                              18%                                                    1,800K
                                     950K                                     51%
                                                                                        Germany
                                                                              21%
                                                                              11%
                                                                                                                                                61%
                                                       40%                                                                                      14%
                                                       42%
                                                                                                                                      Russia    23%

                                                                                                                                                                   Media Economy Report Vol. 11
                                       U.S.            15%                  370K                                                                2%
                                                       4%

                                                                                            5%
                                                                                            73%
                                                                             UK
                                                                                            22%
                                                                                            1%
                                                                                                                                       310K
                                                             150K
                                                                                                              350K
                                                                                                                                                     3%
                                                                      14%
                                                                                                                       29%              China
                                                                                                                                                     72%   970K
                                                                      59%                                                                            25%
                                                             Mexico                                                    32%                           0%
                                                                      22%                                     France
                                                                      5%            130K                               36%
                                                                                                                       2%
                                                                                                    Germany
                                                                                                                                                           Japan
                                                                                                   24%
                                                                                                   12%
                                                                                    Spain          59%
                                                                                                   6%                                                       21%
 The highest volume of OOH inventory is found is large
 countries like Russia and the U.S. (one million units) and                                                                  110K                           63%
                                                                                                                                                            16%
 countries with high population density like Japan, where the                                                                                               0%
 average OOH unit can reach large volumes of commuters.
                                                                                                                                       55%
                                                                                                                                       26%

                                                                                                                                                                      Chapter 3
                                                                                                                             India     18%
 Transit is the environment that supplies the most ad units
 in most markets (U.S., Japan, Germany, UK etc). However                                                                               2%

 the average revenue generated by (usually small) transit
 panels is much lower than the average revenue of large road-
 side billboards, which explains why the latter remains the

                                                                                                                                                                      Chapter 2
 number one revenue-generating segment in most markets.

    Billboard

    Transit

                                                                                                                                                                      Chapter 1
    Street Furniture

    Malls
MEDIA ECONOMY REPORT - RapportWW
OOH INVENTORY: BILLBOARDS PLATEAUING                                                                                     DIGITAL INVENTORY GROWING QUICKLY FROM A LOW BASE

                                                                                                                                                                                                                                                            Page 15
• At the end of 2016 there were approximately 6.4 mil-       • Roadside billboard volume is gradually decreasing         • There were nearly 300,000 digital OOH units in the 22                 • Nevertheless, because digital units frequently carry
  lion ad units in the 22 countries surveyed by RAPPORT        in many markets due to stricter urban regulations.          key markets surveyed by MAGNA and RAPPORT (exclu-                       multiple campaigns simultaneously in a loop (6 to
  and MAGNA. Total inventory was 1% lower than two             Additionally, many media owners choose to concentrate       ding DPB) compared to 230,000 just two years ago.                       8), and command higher rates, digital's share of ad
  years before.                                                on fewer, more profitable formats, due to higher rent or                                                                             revenue is three times higher than its share of inven-
                                                                                                                         • Digital OOH inventory grew by 30% in the last two
                                                               maintenance costs, or lack of demand in rural areas.                                                                                tory, and 10 times higher in the case of street furni-
• The bulk of the decrease came from roadside billboards                                                                   years. Digital growth took place in every segment.
                                                                                                                                                                                                   ture or billboards.
  (-10%), while the volume of transit and mall units
                                                                                                                         • Despite this recent growth, DOOH units represent ba-
  grew significantly (by 6% and 8%, respectively).
                                                                                                                           rely 5% of OOH inventory and barely 1% of billboards

                                                                                                                                                                                                                                                            Media Economy Report Vol. 11
                                                                                                                           and street furniture.

                                                                                                                                                                                  160,5

                                      2.6M                                                                                              2016                     125,4
                  2.2M
                                                                                                                                        2014
                                                                                                                                                                                                                              99,7
                                                                                                                                                                                                               89,1
                                                           1.5M

                                                                                                                                                    38,3
                                                                                                                                      22,1
                                                                               0.2M
                                                                                                                                                                                           3,4        5,7

                               OOH INVENTORY IN THE WORLD'S TOP 22 MARKETS                                                                                                                 INVENTORY
                                                                                                                                                                                                               48%

                                                                                                                                        Digital Share in Units
                                                                                                                                                                                                                              33%
                                                                                                                                        Digital Share in Revenue
                                                                               +8%
                                      +6%
                                                                                                                                                                                   14%
                                                                                                                                                    13%                                                                                           15%
                                                                                                                                                                                                     10%
                                                           +1%                                                                                                     6%
                                                                                                                                                                                                                                     5%
                                                                                                                                       2%                                                  1%

                                                                                                                                                                                                                                                               Chapter 3
                                              2016 INVENTORY VS 2014                                                                                       COMPARING THE INVENTORY MIX AND THE REVENUE MIX
                                                                                                    -1%                                                          „Reading: Only 2% of billboards are digital in the 22 countries
                                                                                                                                                                  surveyed by MAGNA and RAPPORT but they generate 13% of
                                                                                                                                                                                billboard advertising revenues“.

                                                                                                                                                                                                                                                               Chapter 2
                  -10%

                                                                                                                                                                                                                                                               Chapter 1
   OOH

                                                                                                                            DOOH

               Billboard            Transit         Street Furniture          Malls                Total                                    Billboard                   Transit           Street Furniture            Malls               Total
MEDIA ECONOMY REPORT - RapportWW
OOH OWNERS EXPAND THEIR FOOTPRINT                                                                                       CONCENTRATION OF REVENUE AMONG TOP VENDORS
• Alongside the internet media giants, OOH is the only        • The supply side has become increasingly concentrated    • The six main international media owners (JCDecaux,                                           rol nearly 40% of the global OOH market. Adding large

                                                                                                                                                                                                                                                                                                                   Page 17
  other category where several media owners have de-            in the last ten years. The top three vendors now con-     Clear Channel, Outfront, Lamar, Stroer, Exterion) cont-                                      national vendors, the top 15 control almost 50%.
  veloped regional or global presence.                          trol 60% to 80% of total OOH ad sales in most mature
                                                                markets.                                                     #1                Top 3
• An international footprint and scale have made OOH
                                                                                                                                                                                                                                                                                                    89%
  increasingly attractive to global brands (luxury, busi-     • Large, rural, emerging markets like India remain very           83%
                                                                                                                                                   81%
  ness, automotive), which in turn is driving innovation        fragmented while small urban markets like Singapore                                                   78%
                                                                                                                                                                                         77%
  and digital investment.                                       display very high concentration.                                                                                                              75%

                                                                                                                                                                                                                                                                                                                   Media Economy Report Vol. 11
                                                                                                                                                                                                                                  65%

                                                       13%                                                                                                                                                                                               60%

                                                      JCDecaux

                                                                                                                                                                                                   52%                                                                       24%

                                                                        10%                                                            38%
                                                                                                                                                           45%
                                                                                                                                                                            30%
                                                                                                                                                                                                                       43%

                                                                                                                                                                                                                                            27%                                                              26%

                            9%                                        #6 to #15                                                                                                                                                                                    21%
                                                                                                                                                                                                                                                                                        10%

                         Clear Channel
                                                                                                                                UK                 Spain          Canada                France              Germany             Australia                US                  India             Singapore

                                                                                            5%                           THE LARGEST OOH MEDIA OWNERS
                                                                                                                         ($M, 2016)

                                                                                            Lamar
                   5%

                                                                                                                                                                                                                    rt
                                         4%

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                                                                                                                                                                                                                                                                               G
        Outfront

                                                                                                                          3,756             1,514              1,242             500                  280                  210               189                    135                   89

                                                                              2%                                                  2,702                1,500           1,203                 478                 250               206                   158                  95                    89

                                                                                                                                                                                                                                                                                                                      Chapter 3
                                                                           Exterion

                                                                                                                                                                                                                                                                                                                      Chapter 2
                                                                                                                                                                                                                                                                                                                      Chapter 1
                                                            52%
                                                            Other
MEDIA ECONOMY REPORT - RapportWW
MEDIA PARTNER
PERSPECTIVE

                                                                                                                                                                         Page 19
                                                       &

                                                                                                                                                                         Media Economy Report Vol. 11
               Jean-François Decaux
                                CEO
                                       Q                            A        Vincent Letang
                                                                             EVP, Global Media Intelligence
                          JCDecaux                                           MAGNA

            “OOH  is still consumed in the real world, by real
             people, and at real scale.
                                    ”
 VL- How is digital OOH and the power of                   VL- How is data being used to create more              starting to be fully realised and is opening up a
 video complementing the performance of                    dynamic OOH campaigns?                                 whole new communication channel for clients and
 traditional posters?                                                                                             agencies.
                                                           JFD-There are two aspects to data-driven
 JFD- In the IPA (UK) fi ndings of over 1,000               DOOH dynamic campaigns. Firstly, in campaign           VL- How are brands leveraging the new
 case studies, OOH and TV were found to be the             planning, new data sets drive the right ad to the      capabilities provided by ad tech in the OOH
 two most effective media for building brand               right person at the right time. For instance, in the   space?
 impact. Classic outdoor builds brand fame through         UK, we take geo-fenced mobile phone data that
 scale and ubiquity. Digital now delivers that brand       shows the penetration of behavioural types by          JFD-Technology is augmenting traditional OOH
 fame but with the new attributes of topicality,           time of day and day of week. So when people who        with new capabilities, while in other media it has

                                                                                                                                                                            Chapter 3
 contextual messaging, and social media integra-           access fashion apps and web sites are present,         lead to fragmentation and dilution of impact. At
 tion. For example, Trainline.com used big screens         fashion brands can use this data to serve ads to       the same time, the great thing about OOH is that it
 at railway stations to drive brand awareness, but         the right consumers. Our Smart Brics SSP and           is still consumed in the real world, by real people,
 now there is data driven messaging on tickets             DMP uses huge data sets to automatically serve         and at real scale. And it can deliver events such
 available to bespoke destinations with real time          ads to the right consumer at the right time. At the    as the Ghostbusters film launch at Waterloo that

                                                                                                                                                                            Chapter 2
 pricing attached. We call it brand fame to the            same time we have invested heavily in JCDecaux         transcends tech and gets real people immersed
 power of two. And when that communication is              Dynamic, a team of creative technologists under        in huge social experiences. So it’s no wonder
 delivered in environments such as JCDecaux’s new          Alex Matthews. The key team joined from creative       that clients such as Google, Facebook, Amazon,
 digital networks on London Oxford Street and New          ad agency BBH. So, now, we have tools to change        Spotify, and Netflix are all turning to OOH as their
 York’s 5th avenue on huge 84 inch HD screens,             copy automatically based on weather, events, and       medium of choice.

                                                                                                                                                                            Chapter 1
 outside the world’s leading stores, brand fame is         location and also integrating social media feeds
 guaranteed.                                               from clients' own data. These new capabilities are
Chapter 2

                                                                                                     Page 21
REACHING THE
CONSUMER

                                                                                                     Media Economy Report Vol. 11
OUT-OF-HOME
The amount of time consumers spend traveling has enabled even the most
traditional out-of-home formats to have a significant impact. Meanwhile,
technology has brought video to an increasing number of locations and is
fostering innovation in measuring audiences on the move.

     KEY
     TAKEAWAYS

1.   Out of home media reach at least half of the relevant consumer audience in most markets,
     placing it among TV and radio as a true mass medium.

2.   While traditional billboards are plateauing in terms of their share of inventory, in the U.S.
     they are still the most noticed and most engaged-with type of out-of-home ad.

3.   With digital inventory still evolving and growing in the U.S., other traditional formats like
     signage, posters, and public buses follow behind billboards as the most noticed.

4.   Place-based video has been growing rapidly in the U.S., with nearly half of consumers
     noticing these locations and audiences on the rise in venues like elevators, gyms, and

                                                                                                        Chapter 3
     hotels.

5.   Measurement approaches for out-of-home audiences vary across markets, but Ger-
     many, the U.S., and the UK are among the markets seeking to improve and innovate
     by including electronic location data and eye-tracking techniques.

                                                                                                        Chapter 2
                                                                                                        Chapter 1
Zoom

                                                                                                                                                                                                                                                                                        Page 23
                                                                                                                                                          NORWAY
                                                                                                                                                                                                                      RUSSIA

                                                             CANADA                                                                                       DENMARK

                                                                                                                                                                                                                                                                                        Media Economy Report Vol. 11
                                                                                                                                           UK

                                                                                                                                                                                    GERMANY
                                                                        U.S.                                            BELGIUM

                                                                                                                                                          FRANCE

                                                                                                                                      SPAIN
                                                          MEXICO                                                                                                                                                  INDIA

                                                                                                                                                                                                                               MALAYSIA

                                                                                                                                                                                                                                SINGAPORE

                                                                                                                                                                                                                                                   AUSTRALIA
                                                                                              ARGENTINA

                                                                                                                                                                                                                                                                                           Chapter 3
TYPICAL NATIONAL                                                                                 100       95
                                                                                                                        90         90
                                                                                                                                                 85             85
REACH RANGES BY MARKET                                                                            80        85
                                                                                                                                                                          80
                                                                                                                                                                                        75      75         75
                                                                                                                        80         80                                                                                     70
                                                                                                                                                                                                                                  65
                                                                                                          ARGENTINA

                                                                                                                                                 75             75

                                                                                                                                                                                                                                                                                           Chapter 2
                                                                                                                                                                                                                                                                               MEXICO
                                                                                                                                                                                                                                            60         60        60      60
                                                                                                                      GERMANY

                                                                                                                                  RUSSIA

Out-of-home can fairly be considered a mass medium                                                                                                                        70
                                                                                                                                                BELGIUM

                                                                                                                                                              DENMARK

                                                                                                  60                                                                                    65      65         65
                                                                                                                                                                        SINGAPORE
like radio or TV, reaching at least half the relevant                                                                                                                                                                     60

                                                                                                                                                                                        UK

                                                                                                                                                                                              AUSTRALIA

                                                                                                                                                                                                          SPAIN
                                                                                                                                                                                                                                  55
population in most key markets.

                                                                                                                                                                                                                      NORWAY
                                                                                                                                                                                                                                            50         50        50      50

                                                                                                                                                                                                                                 CANADA
                                                                                                  40
                                                                                                                                                                                                                                                                                30

                                                                                                                                                                                                                                          FRANCE

                                                                                                                                                                                                                                                     MALAYSIA

                                                                                                                                                                                                                                                                INDIA

                                                                                                                                                                                                                                                                        U.S.

                                                                                                                                                                                                                                                                                           Chapter 1
                                                                                                  20
0%      10%      20%      30%      40%       50%      60%      70%      80%      90%   100%                                                                                                                                                                                     20

Source: Typical campaigns in each market, as measured by the relevant local entity.               00
SPOTLIGHT ON THE U.S.                                                                                 part to Americans’ robust travel habits; persons 16 and                                           Despite the often transient nature of the interaction,                                                        ALL of the time          Almost never
                                                                                                      older spend over 18 hours per week on the move, covering                                          billboards of all kinds perform reatively well on engage-
                                                                                                                                                                                                                                                                                                                      MOST of the time         Never
As the most plentiful source of out-of-home advertising, it                                           more than 135 miles on average. While the penetration of                                          ment, with 82 percent of persons reporting that they

                                                                                                                                                                                                                                                                                                                                                                   Page 25
                                                                                                                                                                                                                                                                                                                      SOME of the time
may not be surprising that traditional roadside billboards                                            digital billboards in on the rise, they are still not at the le-                                  look at the ads at least
are the most noticed of all formats. But this is also due in                                          vel of their static counterparts, and thus are noticed less.                                      some of the time, and
                                                                                                                                                                                                        more than a third looking
                                                                                                                                                                                                                                           9%      29%                                                      47%                      17% 1%
                                                                                                                                                                                                        most or all of the time.
                                                                                                                                               -21%
                          80%
                                                                                                                                                                                                        Source: Nielsen Out-of-Home Advertising Stu-
                                                                                                                                                                                                        dy, 2016 | Base: Noticed Roadside or Digital
                                                                                                                                                                    -25%                                Billboard in the past month | n=920 | "How
                                                62%                                                                                           59%
                                                                                                                                                                                                        orften, if ever, do you look at advertising

                                                                                                                                                                                                                                                                                                                                                                   Media Economy Report Vol. 11
                                                                                                                                                                                                        messages on roadside billboards?"

                                                                                                                                                                    37%

                      370,000                                                                                                                     6,400
                                                                                                                                           are Digital Billboards
                     Billboards in the U.S

                                                               According to the OAAA, there are approxi-
     Past Week                                                 mately 370,000 billboards in the U.S. and
                                                                  6,400 of them are digital billdoards
     Past Month
                                                                                                                                                                                                                                      Highly                                                                                              Engaged with
                                                                                                                                                                                                                                      Engaged                                                                                              Advertising

Source: Nielsen Out-of-Home Advertising Study, 2016 | Base: All Respondents | n=1,006 | "Please indicatewhen, if ever, waslast time you noticed {Roadside Billboard}{Digital Billbpard} Advertising."

Among other out-of-home formats, posters, printed si-                                                                     Past Week
gns, and bus ads are typically noticed by more than half
                                                                                                                          Past Month
the 16+ population in a given month. Concentration in                                                                                                                                                                                                                                      Printed Signs in
                                                                                                                                                                                                                       Shopping Mall                                                                                                                   Airport
                                                                                                                                                                                                                                                                                           Various Venues
major metropolitan areas may somewhat limit taxis and
                                                                                                                                                                                                                         44%           17%                                                    63%            40%                                 10%          4%
commuter rail ads, and only a relatively small portion of
the population move through airports on a regular basis.

                                                                                                                                                                                                                                                                                                                                                                      Chapter 3
                                                                                                                                                                                                                                                                                                                                                                      Chapter 2
                                                                                                                                                                                                                                                                                           Taxi Cab or other                                  Commuter Rail or
                     Poster                                                          Street Level                                                         Bus Shelter                                                     Public Bus                                                            Vehicle                                          Subway
                53%           32%                                                    47%           30%                                                   37%            22%                                              56%            39%                                                    39%           21%                                 17%          9%

                                                                                                                                                                                                                                                                                                                                                                      Chapter 1
Source: Nielsen Out-of-Home Advertising Study, 2016                                                                                                                                                     Base: All respondents l n=1006 l “Please indicate when, if ever, was the last time you noticed {Insert TYPE} advertising.”
PLACE-BASED VIDEO                                                                                        Video Screens
                                                                                                       in Various Venues
                                                                                                                                               Looking at a range of different venues, while there have been some fluctua-
                                                                                                                                               tions, the overall trend for place-based video networks has been positive from
                                                                                                                                               an audience perspective. One notable exception in this case was the Best Buy
A GROWTH ENGINE FOR

                                                                                                                                                                                                                                                                                                                  Page 27
                                                                                                                                               in-store network, likely due to the closing of stores over the past few years.
OUT-OF-HOME IN THE U.S.                                                                                                                        Source: Nielsen On Location Place-Based Video Report

Although a relatively new phenomenon
in the out-of-home space, place-based                                                                                                                                                                                                                       90,000            120,000
                                                                                                                                                                                                      30,000                         60,000
video had been a part of the overall
movement toward sight, sound, and
                                                                                                                                                                                                                                                                                  119.7

                                                                                                                                                                                                                                                                                                                  Media Economy Report Vol. 11
                                                                                                                                                        4Q16
motion that many traditionally static
                                                                                                                                                        4Q15                                                                                                                  114.3
media types have undertaken.
                                                                                                                                                        4Q14                                                                                                           93.0             AdSpace Mall Network

                                                                                                                                                        4Q13                                                                                         76.9
As consumers have demonstrated their                                                                Past Month    Past Week
preference in video, we’ve seen more                                                                                                                    4Q12                                                                                                         91.8

of it popping up in the locations they
                                                                                                            53%   32%
                                                                                                                                                        4Q16                                   17.9
pass through on a daily basis. In terms
                                                                                                                                                        4Q15                                     16.9
of effectiveness, it already rivals or
                                                                                                                                                        4Q14                                        20.0                                                                                  Best Buy In-Store
surpasses several types of static place-
                                                                                                                                                        4Q13                                             23.2
ments, including street furniture, malls,
                                                                                                                                                        4Q12                                               26.0
airports, taxis, and transit.

Source: Nielsen Out-of-Home Advertising Study, 2016                                                                                                     4Q16                                               25.3

                                                                                                                                                        4Q15                                      18.1
                                                                                                                                                                                                                                                                                          Captivate Network
                                                                                                                                                        4Q14                                   16.5
                                                                                                                                                                                                                                                                                             (Elevator)
                                                                                                                                                        4Q13                                   16.1

                                                                                                                                                        4Q12                                 14.4

CASE STUDY: GAS STATION TV                                                                                                                              4Q16                                                                     44.4

                                                                                                                                                        4Q15                                                             40.4

                                                                                                                                                        4Q14                                                           38.1                                                             CNN Airport Network
STRATEGY: DRIVE TO PURCHASE                                                                                                                             4Q13                                                       36.7

                                                                                                                                                        4Q12                                                                  43.3

A CPG snack brand tapped into key
strengths of GSTV.                                                                                                                                      4Q16                               9.5

                                                                                                  83%                           49%                     4Q15                           6.1
An attentive audience of which 94% are                                                                                                                                                                                                                                                SONIFI (Hotels and Health
                                                                                                Unaided Ad                 Increase in brand            4Q14                         5.7
engaged with screens.                                                                                                                                                                                                                                                                      Care Facilitys)

                                                                                                                                                                                                                                                                                                                     Chapter 3
                                                                                                  Recall                      favorability              4Q13
Top of mind awareness for an audience                                                                                                                   4Q12
that 1 in 3 will go grocery shopping
after fueling.*                                                                                                                                         4Q16                             9.3

                                                                                                                                                        4Q15                         5.2
                                                                                                                                                                                                                                                                                        Verifone at the Pump

                                                                                                                                                                                                                                                                                                                     Chapter 2
                                                                                                                                                        4Q14                       3.4                                                                                                     (Gas Station)
RESULT: OUTSTANDING RECALL & FAVORABILITY                                                                                                               4Q13

                                                                                                                                                        4Q12
Exceptional engagement indicated by
                                                                                                                                                        4Q16                                                                                  68.2
the outstanding total and unaided ad
                                                                                                                                                        4Q15                                                      35.7

                                                                                                                                                                                                                                                                                                                     Chapter 1
recall. This drove increased favorability                                                         96%                           55%                     4Q14                                                    28.8
                                                                                                                                                                                                                                                                                        Zoom Fitness Network
& high purchase intent.                                                                                                                                                                                                                                                                       (Gyms)
                                                                                                 Total Ad                     Likely to                 4Q13                                                       35.5
Source: GSTV NIelson Studies Data 2006-2014; Lieberman Client Custom Research Study, October
                                                                                                  Recall                      Purchase
                                                                                                                                                        4Q12                                                    29.5
2014; * 2011-2013 Nielson INtercept Studies. **2012 Nielson Advertising Fact Sheet - TV -26%.
OUT-OF-HOME
MEASUREMENT

                                                                                                                                                                                                                                     Page 29
COMPARISON

                                                                                                                                                                                                                                     Media Economy Report Vol. 11
       Market                Unifi ed OOH                   Governance           Audience          Frequency of           Audience              Electronic        Demographics           Visibility            Impression
                              Currency                                          Reporting          Reporting            Calculation          Location Data?                             Factors                 Type

         U.S.                      Partial                      Joint            Estimated          Hourly/Daily      Mixed Methodology            Yes               Detailed          Eye-Tracking                Both

       Canada                         No                        Joint            Estimated             Annual         Traffi c Counts Only           No                 Basic               None          Gross Opportunity-to-See

          UK                         Yes                        Joint              Hybrid             Seasonal        Mixed Methodology            Yes               Detailed             Hybrid          Net Likelihood-to-see

        France                       Yes                      Sell-side            Hybrid             Seasonal        Mixed Methodology             No                 Basic         Location Mapping    Gross Opportunity-to-See

       Germany                       Yes                        Joint              Hybrid              Annual         Mixed Methodology            Yes               Detailed             Hybrid            Gross Opportunity

      Australia                      Yes                      Sell-side           Estimaed             Annual         Mixed Methodology             No                 Basic               None           Net Likelihood-to-See

                           Possible Answers:              Possible Answers:   Possible Answers:   Possible Answers:   Possible Answers:      Possible Answers:   Possible Answers:   Possible Answers:      Possible Answers:

                                     Yes                        Joint              Actual              Annual                None                   Yes                None                None           Gross Opportunity-to-See
                                    Partial                    Sell-side          Estimated           Seasonal         Traffi c Counts Only          No                 Basic            Eye-Tracking        Net Likelihood-to-See

                                                                                                                                                                                                                                        Chapter 3
                                      No                        Hybrid             Hybird            Hourly/Daily     Miexed Methodology                              Detailed        Location Mapping              Both
                         (Audiences Report Idividually)
                                                                                                                                                                                          Hybrid

                                                                                                                                                                                                                                        Chapter 2
Gross Opportunity-to-see refers to any persons that have an oppor-

                                                                                                                                                                                                                                        Chapter 1
tunity to see an ad, regardless of whether or not they look at it, whereas
net likelihood-to-see applies a probability factor meant to zero in on the
number of people that actually make eye contact with an ad.
KYM FRANK, GEOPATH:
INTERVIEW

                                                                                                                                                                       Page 31
                                                       &

                                                                                                                                                                       Media Economy Report Vol. 11
                          Kym Frank
                           President
                                       Q                            A        Brian Hughes
                                                                             SVP Audience Analysis & Strategy
                            Geopath                                          MAGNA

           “
                                                                                                                  significant effort into analyzing every type of
             The US OOH Industry Invested to Revolutionize its                                                    data available to the marketplace. We use each
             Measurement System...                                                                                data to its strength to generate comprehensive,

                                                   ”                                                              reliable audience location measurement across the
                                                                                                                  country.

 BH-Tell me about Geopath’s new methodology                                                                       While it is fueled by mobile data, connected car
 for measuring audience location.                          MORE does not rely on sensors or geofences.            data, and information from GPS devices, Geopath
                                                           It is measuring aggregated anonymous audience          measurement is unbiased and representative of
 KF-The OOH industry in the United States has              information at all locations across the United         the entire population. Unlike other methodologies,
 made a significant investment to revolutionize             States all day long – whether or not there happens     we don't just measure the people who own a
 its measurement system through a methodology              to be a piece of OOH inventory in that location.       smartphone, use specific apps, get served a
 developed by Geopath called MORE. It includes                                                                    mobile ad, or pass through a geofence. This sets
 state-of-the-art audience location measurement            BH-As more and more data become available              the organization apart from the rest of the data
 designed to help the industry more effectively            to the marketplace, what does the future hold for      marketplace. And we can do this because we are a
 plan, buy and sell OOH media. Fueled by mobile            Geopath?                                               not-for-profit organization that provides superior

                                                                                                                                                                          Chapter 3
 data, data from connected cars, and GPS units,                                                                   measurement at a shared cost to the industry.
 MORE is truly groundbreaking. It will allow the           KF- For many years, “big data” was a hot topic         That is a value proposition that would be difficult
 OOH indus try to understand consumers' mo-                across advertising channels. In recent years, the      to top.
 vements and target beyond simple demographics.            conversation has changed, centering more on
 For example,audiences that are in the market for a        “smart data.” At Geopath, our focus is on “trust-      In fact, the new methodology developed at Geo-

                                                                                                                                                                          Chapter 2
 new car, or who tend to have fast food for lunch.         worthy data.”                                          path will make OOH in the United States one of the
                                                                                                                  most responsibly measured channels in the world.
 This puts the medium in a position where they             Each type of data has its strengths and weaknes-
 can reach the right consumers at the right time           ses - there is no silver bullet. As the organization
 with the right message – and allows OOH the same          responsible for generating the OOH industry’s

                                                                                                                                                                          Chapter 1
 ability to understand audience delivery currently         standard currency and the insights utilized
 being utilized by digital media.                          to plan and buy the medium, Geopath invests
Chapter 3

                                                                                              Page 33
NEW VALUE
DRIVERS

                                                                                              Media Economy Report Vol. 11
As DOOH technologies become increasingly sophisticated and the consumer
data environment continues to grow, OOH will be able to deliver experiences
that are both context-appropriate and timely.

     KEY
     TAKEAWAYS

1.   As digital OOH evolves, so will its ability to deliver creative that is contextual and
     supports brand objectives, using weather, social, transit, and news data.

2.   DOOH is being used to augment social campaigns, either through integration or content
     creation (conversations, AR stunts, interactive events, etc.)

3.   Programmatic OOH technologies are being used to buy and optimize campaigns on connec-
     ted DOOH units, helping brands to deliver the right ad in the right place at the right
     time using consumer and mobile location data.

4.   Leveraging smartphones (data, activity tracking, and interactivity) specifically to
     maximize the effi cacy of an OOH campaign is not just recommended, but crucial for
     value maximization.

                                                                                                 Chapter 3
5.   The future of digital OOH will rely on improved physical measurement such as live
     location-based data, as well as better attribution tools like beacons or recognition
     software.

                                                                                                 Chapter 2
                                                                                                 Chapter 1
AD TECH PARTNER PERSPECTIVE:                                                                                        have been particularly prevalent, but there has         PS- How are you seeing DOOH being used to
DOOH AND CREATIVITY                                                                                                 also been cinema listings, traffic reports, pollution    complement social campaigns?

                                                                                                                                                                                                                                    Page 35
                                                                                                                    levels, travel times, BARB data, and car recognition
                                                                                                                    technology used to inform DOOH creative.                NM-There are two main avenues DOOH is being
                                                                                                                                                                            used to complement social campaigns, either
                                                                                                                    PS- How important is context when delivering            through integration or through content creation.

                                                         &                                                          messages in OOH?
                                                                                                                                                                            During the FIFA World Cup last year, Continental

                                                                                                                                                                                                                                    Media Economy Report Vol. 11
                                                                                                                    NM- By layering data into campaigns, brands are         Tyres integrated their social media activity with
                                                                                                                    able to deliver stronger messages which are more        their DOOH campaign - broadcasting their #Conti-
                                                                                                                    engaging for consumers throughout the campaign          Quiz live Twitter stream, featuring fans' predictions

                       Paul Sambrook
            Global Marketing Director
                                           Q                          A        Neil Morris
                                                                               Founder and CEO
                                                                                                                    life-cycle. Studies have proven that contextual
                                                                                                                    advertising improves brand recall, purchase intent,
                                                                                                                                                                            and messages to 2,000 screens across the UK.

                              Rapport                                          Grand Visual                         and brand favourability - improving ROI and making      The other way social is complementing DOOH is
                                                                                                                    media money work harder.                                where experiences in the physical world such as AR
                                                                                                                                                                            stunts (PepsiMax Bus Shelter) or interactive events

    “
                                                                                                                    PS- Marketing trends such as real-time and              (Disney Shadows) are being used to create content
      Digital OOH technology has the ability to tailor contextual                                                   personalisation - how realistic are they in OOH,        to be seeded across social channels.
      creatives that support brand objectives.
                                                                      ”
                                                                                                                    and what are the benefits for brands?
                                                                                                                                                                            PS- What is the greatest opportunity you see
                                                                                                                    NM- As a broadcast medium, the focus for digital        today for brands using DOOH?
                                                                                                                    OOH should be around contextualisation rather
 PS- How do you defi ne “dynamic” content in                  networks from a single platform. OpenLoop enables      than personalisation. By integrating real-time,         NM- The digital revolution is expanding the
 the DOOH space, and what are the benefits to                 advertisers and agencies to be more targeted           contextual messaging a brand is now able to deliver     communication potential of OOH and the role it
 brands using this tactic?                                   and tactical with their digital OOH creative. It has   the right message, to the right audience at the right   plays in the media mix. From static campaigns
                                                             been delivering live, contextual campaigns since       time.                                                   to timely, contextual, and interactive messages,
 NM- As digital OOH technology has evolved,                  2010 for brands such as Amazon, Google, Nike and                                                               planners can now fully integrate digital OOH into a
 so has the ability to tailor creative so that it is         Facebook.                                              The incorporation of any third party data should be     brand‘s broader digital strategy. Budgets are also
 contextual and supports brand objectives. Dynamic                                                                  based on group behaviours – all anonymised and          rising as spending switches to digital channels and
 campaigns for digital OOH are ones which are                PS- How are different types of data being              aggregated at the source to ensure privacy. This        clients recognise the increased potential of digital
 responsive and deliver the full potential of the            used by brands to create dynamic campaigns?            will empower marketers to make smarter use of           OOH.
 channel by being live and data-driven.                                                                             digital screens with messages that are useful and

                                                                                                                                                                                                                                       Chapter 3
                                                             NM-There is a vast range of data available to          timely in a context-relevant way.                       PS- What are the latest trends you’re seeing
 By integrating layers of data into campaigns, digital       brands for the creation for dynamic campaigns.                                                                 in DOOH?
 OOH can exploit the ‘Context Effect’ – providing            From location data, and third party data such as       We should also learn from the world of online
 dynamic and locally relevant information throug-            weather, social, transit, and news, to brand owned     advertising and the rise of ad-blockers when            NM- As more markets begin to adopt DOOH, the
 hout the customer journey.                                  data such as pricing, stock levels, and retail store   advertising tries to be personal, it can overshoot      scale of the opportunity is increasing exponentially.

                                                                                                                                                                                                                                       Chapter 2
                                                             sales.                                                 the mark and be viewed as invasive.                     Globally, a more cohesive inventory means it is now
 PS- How has your ad-tech been used to deliver                                                                                                                              easier and more cost effective for brands to build
 smarter campaigns for advertisers?                          The datasets have expanded beyond the pure             Personalisation within OOH should come from             once and roll out local variations of a campaign
                                                             daypart and weather activations that informed the      “opt-in“ interactive experiences rather than a          across multiple territories - something we have
 NM- We developed OpenLoop, our intelligent                  majority of DOOH creative in 2015. Campaigns           Minority Report-style approach.                         seen more and more for both linear and interactive

                                                                                                                                                                                                                                       Chapter 1
 campaign management platform, to enable the op-             utilising sports data or social media triggers                                                                 projects alike.
 timisation of campaign messaging across multiple            (trends, polls, competitions, direct interaction)
22%
BRINGING OUT-OF-HOME
AND MOBILE TOGETHER

                                                                                                                                                                                                                                    Page 37
MOBILE INTERACTION
With smartphone access nearly universal in the U.S. and
acting as most consumers’ companion device, it seems
only natural to bring them together for a more effective
advertising experience.                                                                                                                                    Accessed a coupon or
                                                                                                                                                              discount code.                                               22%

                                                                                                                                                                                                                                    Media Economy Report Vol. 11
When someone wants to know more about a product or                                                                                              35%
service, they naturally reach for their phone.

                                                                                                                 Used online search (such as Google
Source: Nielsen Out-of-Home Advertising Study, 2016

Base: OOH MEDIA VIEWERS WHO OWN A SMARTPHONE WITH INTERNET ACCESS.
                                                                                                                   or Bing) to look up information
n=805 | "In the past year, for which, if any, of the activities below didi you use your smart-                          about the advertiser.
phone or mobile device after seeing a billboard or other out-of-home advertisement?"

                                                                                                                                                                                                 Visited an advertiser´s
                                                                                                                                                                                                         website.

                                                                                                                         8%

                                                                                                                                                                                                                              15%

                                                                                                 Engaged in any other activities
                                                                                                  using your smartphone after
                                                                                                 seeing a billboard or other out-
                                                                                                    of-home advertisement.

                                                                                                                                                                                                                                       Chapter 3
                                                                                                                                                 6%                                                   Downloaded or used an
                                                                                                                                                                                                         app in the ad.

                                                                                                                                                                                           14%

                                                                                                                                                                                                                                       Chapter 2
                                                                                                                                                                                                                                       Chapter 1
                                                                                                                                Interacted with an ad to
                                                                                                                               send a message, upload a
Source: Nielsen Out-of-Home Advertising Study, 2016
Base:
                                                                                                                                     photo or vote.
                                                                                                                                                                   Snapped a photo of an ad.
CASE STUDY

                                                                                                                                                                                                                  Page 39
CAMPAIGN OBJECTIVE                                                                                 SOLUTION
To engage younger generation, and bridge gap between real world and digital                        Time Square visitors tweeted #CokeMyName to see personalized story featuring their on
world with out-of-home version of “What´s in a Name“ trivia game.                                  a digital billboard; Photos of nameshake display were tweeted back to fuel social sharing.

                                                                                                                                                                                                                  Media Economy Report Vol. 11
                                                                                                                                                                                                                     Chapter 3
RESULT
                                                                                                                                                                                       TWEET YOUR NAME

             5.4MM                                42K                                                        110                                        49

                                                                                                                                                                                                                     Chapter 2
                                                                              350MM
                                                                                                                                                                                            Laurens #cokemyname

                                                                                                                           Countries                             % Exposure

          audience impressions in               social posts with             social impressions           Tweets with #CokeMyName were mentioned in 110 countries with the
         Times Square over three-             #CokeMyName during                                              U.S. representing 49% of exporsure (across multiple metros).

                                                                                                                                                                                                                     Chapter 1
               week period.                        this period

Source: Clear Channel/Mobile Marketer, 2015
THE PROGRAMMATIC OOH                                                                      1 - PLANNING
CAMPAIGN PROCESS

                                                                                                                                                               Page 41
                                                                                        • Build, approve, and pre-load creative (potentially with basic
                                                                                          dynamic creative options).

                                                                                      • Identify KPI to optimize i.e., ad recall, foot traffic lift, etc.
Programmatic OOH provides tools that get brands
closer than ever to the aim of delivering the right                                 • Set budget, confi gure PMP auction limitations if necessary.
ad in the right place at the right time, with the
goal of changing consumer behavior.                                                • Identify optimal audience based on multiple factors: demo, income,

                                                                                                                                                               Media Economy Report Vol. 11
                                                                                     behavior, proximity, or location, using something like CCOA’s Radar,
Programmatic OOH is not just workfl ow                                                PlaceIQ Mobile Segment Taxonomy, Telco data, Mobile Apps and Pub-
automation; place-based digital inventory and                                        lishers, Polk car ownership by household, CPG purchase history, etc.
even billboards are sending bid requests to
                                                                               • Identify which digital sites best match target consumers, and either set up
exchanges. The purchase price is determined
                                                                                 private deal with rules for targeting, or leverage open exchanges to see
through second price auctions, and impressi-
                                                                                 only appropriate bid requests through chosen DSPs.
ons are served and reported in a very
similar manner to what happens with a
single impression in display, video,
or mobile.
                                                                          2 - EXECUTION
It doesn’t happen in milliseconds, but
the timeline is seconds and minutes
                                                                        • Manage budget and timeline via DSP. Ensure bid and
rather than hours, days, or weeks.
                                                                          decisioning on each spot are appropriate.

                                                                     • Manage experimentation budget: try a different audience
                                                                       to see what is optimal. Alternatively, use different targeting
                                                                       criteria, different screen locations, or different times of
                                                                       day to test and then maximize performance.

                                                                3 - OPTIMIZATION
                                                             • Receive impressions in minutes, not days, as well as estimated impressions

                                                                                                                                                                  Chapter 3
                                                               delivered, total spots and spend, and 3rd party ad tracking. Receive foot
                                                               traffic reports and other campaign metrics soon after completion.

                                                          • Mobile data companies such as Placed and AT&T can execute views to visit
                                                            studies using control groups. Foot traffic and site visitation is measured.

                                                                                                                                                                  Chapter 2
                                                        • Use micro-surveys to measure upper and mid-funnel metrics
                                                          such as online searches for a brand, lift in discussion, intent
                                                          to purchase, etc.

                                                                                                                                                                  Chapter 1
                                                      • Early stage development on more granular attribution such
                                                        as online behavior, as well as closing the loop fully on sales
                                                        for verticals like auto and CPG.
THE FUTURE OF
PROGRAMMATIC OOH

                                                                                                                                                         Page 43
                                                                                  • Layer in digital behavior more comprehensively, i.e., what Goo-
                                                                                    gle searches occurred after exposure, or at least after being in
                                                                                    proximity to a digital OOH screen.
The future of programmatic OOH revolves around
improvements in measurement, attribution, and
linking OOH to other channels.

                                                                                                                                                         Media Economy Report Vol. 11
                                                                             • Data landscape improvements to inform cross-channel sequencing,
The six key developments on the right will represent
significant steps forward for the programmatic OOH
                                                                               messaging, and retargeting that expands beyond just mobile devices.
space.                                                                         Ideally, brands would link to audio and mobile for a simultaneous expe-
                                                                               rience, as well as TV and desktop/tablet for reinforcement.

                                                                       • Improved physical measurement such as live location-based
                                                                         data, or even more advanced technology, to differentiate who is
                                                                         paying attention when in proximity to a screen.

                                                                   • More customized OOH solutions for transactions, as opposed to
                                                                     treating digital OOH like a giant banner. Unique DOOH fields in tech
                                                                     stack consoles will help close the gap between buyer and seller
                                                                     perception of value.

                                                             • Better attribution, including more comprehensive physical be-
                                                               havior verification. Currently, control markets are used to judge
                                                               attribution, but beacons and facial recognition could go a long way

                                                                                                                                                            Chapter 3
                                                               towards closing the loop between exposure and purchase.

                                                                                                                                                            Chapter 2
                                                       • Dynamic creative based on who is currently in proximity to
                                                         the screen. Creative content management systems are already in
                                                         place, it’s just a question of activating live location-based data.

                                                                                                                                                            Chapter 1
MEDIA PARTNER PERSPECTIVE:                                                                                                        measurability and creativity. Initially, we’ve invested a     our medium, and ourselves through the use of our own
DOOH & PROGRAMMATIC                                                                                                               lot of time and effort into developing and automating our     technology, which gives us full control of the ads and how

                                                                                                                                                                                                                                                               Page 45
                                                                                                                                  back-end systems, such as our inventory management            they are served.
                                                                                                                                  tools. Data has also been another key area of focus so that
                                                                                                                                  we can offer truly audience-based packages.                   LS- How much has your vision for Programmatic
                                                                                                                                                                                                OOH re-shaped your thinking towards talent, techno-

                                                                &                                                                 LS-What advantages are to be gained by brands
                                                                                                                                  using programmatic OOH?
                                                                                                                                                                                                logy, data, and training within your organisation?

                                                                                                                                                                                                                                                               Media Economy Report Vol. 11
                                                                                                                                                                                                WE-Technology has absolutely transformed out of
                                                                                                                                  WE- Most obviously, it provides a new self-service            home and our business over the last few years. Therefore,
                                                                                                                                  channel for our customers to connect to our inventory         so have the skills required of our people. We are investing

                          Luke Stillman
                 VP, Digital Intelligence
                                              Q                                A        William Eccleshare
                                                                                        Chairman & CEO
                                                                                                                                  via their programmatic platform of choice and to plan and
                                                                                                                                  buy a tailored solution based on audience – just as they
                                                                                                                                                                                                to ensure that we have the right people with the right
                                                                                                                                                                                                skillsets using the right tools, who can keep pace with and
                                 MAGNA                                                  Clear Channel International               can in other media. As we move forward, we plan to add        adapt to the tech-driven changes and evolving needs of
                                                                                                                                  additional capabilities including expanded use of data for    our customers and consumers. The increased automation

   “   ..we believe programmatic represents a once-in-a-generati-
       on opportunity for the out-of-home industry...
                                                                                                                                  improved audience targeting, greater booking fl exibility,
                                                                                                                                  creative optimisation, and expanded measurement capa-
                                                                                                                                                                                                of our processes means that our teams can spend more
                                                                                                                                                                                                time working with customers to provide them with the

                                                                                          ”
                                                                                                                                  bilities to provide more accountability for brands’ spend     most creative and effective solutions to their briefs. Data
                                                                                                                                  in OOH. Ultimately, advertisers will be able to plan, buy,    is a critical part of this and it is used at every stage of
                                                                                                                                  optimise, and measure the effectiveness of their outdoor      the buying journey. We are initially working with indust-
 LS-What is your defi nition of programmatic in the                  ved and more efficient buying experience. As we enable         campaigns, all within a single, simple, online platform.      ry-recognised OOH audience measurement data to fuel
 OOH space?                                                         more programmatic connections to external platforms                                                                         our assets but will continue to augment this further as
                                                                    and add further audience targeting, measurement, and          LS- Learning from some of the challenges currently            our solution evolves. In the future, customers will also be
 WE- Quite literally, we defi ne programmatic in out-                creative optimisation capabilities to our solution, we will   being faced by programmatic online, how important is          able to layer on their data sources to enrich the audience
 of-home as: “the automation of our planning, buying and            attract more advertisers who don’t currently buy              transparency and accountability to your proposition?          targeting process. Programmatic represents a new and
 delivery process, enabling our customers to book and               out-of-home.                                                                                                                easy way for customers at all levels of the buying chain
 deliver a campaign within a digital platform – but with                                                                          WE-Transparency and trust between media owner                 to connect to our inventory, but ultimately our business
 a particular focus on ‘audience,’ as it is audiences that          LS- How are Clear Channel making programmatic                 and advertiser are crucial. We’re working to avoid some       is still helping brands to use outdoor’s creativity and
 advertisers ultimately want to buy. But it also means              OOH a reality?                                                of the pitfalls that online media owners have run into with   fl exibility to connect with consumers.
 giving media buyers self-servicing capabilities that allow                                                                       programmatic, but OOH has unique qualities that make
 them to manage campaigns from planning through to                  WE- I’ve described Clear Channel’s investment in              it immune to some of the challenges. Firstly, ours is a       LS - Does the continued rise of DOOH and pro-
 execution, with the fl exibility and audience data that their       programmatic as “our big bet,” as we believe it represents    context-based medium, our content is the message – so         grammatic signal that the end is nigh for traditional

                                                                                                                                                                                                                                                                  Chapter 3
 briefs demand, the creativity that drives brand impact, and        a once-in-a-generation opportunity for the out-of-home        there is no risk of running an ad alongside an unsavoury      posters?
 the measurability to demonstrate effectiveness. We view            industry, enabling brands to connect more effectively         article or user-generated content. People often associate
 programmatic – or the automation of these processes – as           with their audiences by allowing them to deliver the right    programmatic with the trading of low quality inventory at     WE -Whilst the real time and contextual possibilities
 the natural evolution of OOH’s technology-driven                   message to the right audience at the right time. We have      even lower prices. We are starting by selling our premium     of DOOH have revolutionised the creative engagement
 transformation.                                                    already made the fi rst significant steps on our program-       DOOH inventory on an automated and guaranteed                 possibilities of our medium, traditional posters are still a

                                                                                                                                                                                                                                                                  Chapter 2
                                                                    matic journey. We successfully launched our solution          basis which means customers can buy a fixed volume of          fabulous way to build brand fame and I believe that they
 LS-And is there a demand for it?                                   in Belgium in January, with campaigns for advertisers         inventory at a fixed price, so our prices will be the same     will be around for a long time to come. We are initially
                                                                    including Mercedes and Deliveroo. The fi rst phase of UK       whether you buy OOH through online or offline channels.        focused on selling our premium digital OOH products
 WE-Absolutely, yes. My simple belief is that by making             roll-out has also now gone live across our premium digital    Greater campaign measurement and reporting capabilities       programmatically, but there is no reason why we can’t
 something easier to buy, you will sell more. So by bringing        Storm network, launching with campaigns from Santander,       enabled through automation mean improved transparency         also use these same mechanisms for trading our classic

                                                                                                                                                                                                                                                                  Chapter 1
 down some of the perceived and historical barriers of              O2, and InBev. Our strategy and approach is based around      around campaign effectiveness and viewability. We are         supply in the future.
 buying outdoor, our existing customers will have an impro-         addressing our customers’ key needs for fl exibility,          also maintaining trust by protecting our advertisers,
ABOUT THIS REPORT                                          CONTRIBUTORS

                                                                                                          Page 47
The advertising revenue and inventory data in this docu-
                                                           Vincent Letang @vletang_magna
ment are extracted from the MAGNA-RAPPORT Global
                                                           EVP, Global Market Intelligence, MAGNA
OOH Report to be published in July 2017.
                                                           vincent.letang@magnaglobal.com

They are derived from MAGNA market research in 70          Brian Hughes @bhughes_magna
countries and a survey of OOH landscapes conducted         SVP, Audience Intelligence & Strategy, MAGNA

                                                                                                          Media Economy Report Vol. 11
                                                           brian.hughes@magnaglobal.com
in 22 countries representing 80% of the world’s OOH
spending:
                                                           Luke Stillman @lukestillman
                                                           VP, Digital Intelligence, MAGNA
• Argentina                                                luke.stillman@magnaglobal.com
• Australia
• Belgium                                                  Paul Sambrook
• Canada                                                   Global Marketing Director, RAPPORT

• China                                                    Paul.Sambrook@rapportww.com

• Denmark
• France
• Germany
• India, Italy
• Japan
• Malaysia
• Mexico
• Netherlands
• Norway
• Philippines
• Russia
• Singapore
• Spain
• Thailand
• UK
• U.S.

The full report, containing indivi-
dual market profi les, is available
for Mediabrands employees and

                                                                                                             Chapter 3
MAGNA subscribers at
www.atlas.magnaglobal.com

                                                                                                             Chapter 2
                                                                                                             Chapter 1
                                                           Design by
                                                           Bureau Oberhaeuser @oberhaeuserinfo
                                                           contact@oberhaeuser.info
THE WORLDWIDE OOH                                                                                                         EUROPE
                                                                                                                                                        Sweden
                                                                                                                                                         $222M
                                                                                                                                                      DOOH 17%          Finland
                                                                                                                                                                        $60M
                                                                                                                                                                        DOOH 9%

ADVERTISING MARKET

                                                                                                                                                                                                                                                                                                                                              Page 49
                                                                                                                                                                             Estonia
                                                                                                                                                                             $12M
                                                                                                                    UK                                                       DOOH 11%
                                                                                                                    $1,416M                       Norway
                                                                                                                    DOOH 30%                       $95M
                                                                                                                                                 DOOH 7%

                                                                                                Ireland                                    Denmark                                                                                                                                                                    Japan
                                                                                                                                              $77M                      Poland

                                                                                                                                                                                                                                                                                                                                              Media Economy Report Vol. 11
                                                                                                  $92M                                                                  $178M                                        Russia                                                                                           $4,967M
                                                                                               DOOH 8%                                     DOOH 4%
                  NORTH                                                                                                                                                 DOOH 20%       Lithuana                      $574M                                                                                            DOOH 8%
                                                                                                                                                                                       $53M                          DOOH 12%
                                                                                                                                                                                       DOOH 0%
                  AMERICA                                                                                                                              Germany                     Latvia                                 Ukraine                                    Taiwan Province of China
                                                                                                                                                       $1,240M                     $10M                                   $19M                                                        $124M
                                                                                 Nerherlands                                                           DOOH 8%                     DOOH 4%                                DOOH 11%                                                 DOOH 16%
                                                                                      $207M       Belgium                                                                                               Slovak Republic
                                                                                   DOOH 11%        $201M                                                                                                $29M
 Canada                                                                                                         France                                                                                  DOOH 4%
                                                                                                 DOOH 5%
 $475M                                                                                                          $1,432M                                                                                                                                   China
                                                                                                                                                                                                       Czech Republic
 DOOH 14%                                                                                                       DOOH 8%                                                                                                                                   $3.403M
                                                                                                                                                                                       Slovenia        $34M                                                                                            Korea
                                                                                                                                                                                       $26M            DOOH 6%                                            DOOH 22%                                     $831M
                                            United States                                                                                                                              DOOH 6%                                                                                                         DOOH 16%
                                                 $7,733M
                                               DOOH 13%                                                                                                                                  Romania
                                                                                                                                                                                         $12M
                                                                                                                                                                                         DOOH 5%
                                                                                                                                                Switzerland                            Bulgaria
                                                                                                                                                $551M                   Hungary        $24M
                                                                                                               Spain                            DOOH 4%                 $64M           DOOH 0%
                                                                                                               $380M                                                    DOOH 1%                                               Pakistan
                                                                                      Portugal                 DOOH 12%                                                 Austria                                               $85M
                                                                                         $78M                                                                           $231M                                                 DOOH 0%
                                                                                      DOOH 6%                                         Croatia                           DOOH 9%
                                                                                                                                        $17M       Italy
                                                                                                                                     DOOH 4%       $492M
                                                                                                                                                   DOOH 7%                                                                           India
                                                                                                                                                                                                                                     $470M                                                                 Hong Kong SAR

                                                                                                                                                               Greece      MIDDLE                         Turkey
                                                                                                                                                                                                           $173M
                                                                                                                                                                                                                                     DOOH 2%
                                                                                                                                                                                                                                                                      Vietnam
                                                                                                                                                                                                                                                                                                           $591M
                                                                                                                                                                                                                                                                                                           DOOH 17%

                                                                                                                                                                           EAST Bahrain
                                                                                                                                                                $20M                                                                                                  $63M
                                                                                                                                                                                                         DOOH 3%
                                                                                                                                                              DOOH 0%                                                                                                 DOOH 2%
                   Mexico
                                                                                                                                                                                $6M                                                      Sri Lanka
                   $373M
                                                                                                                                                                                          DOOH 0%                                        $2M                                    Malaysia
                   DOOH 10%
                                                                                                                                                                                                    Qatar                                DOOH 0%                                $142M
                                                                                                                                                                                                    $10M                                                                        DOOH 2%
                                                                                                                                                                              Kuwait                DOOH 0%
                                                                                                                                                                               $160M
                               Panama
                                                                                                                                                                             DOOH 0%
                                                                                                                                                                                                                                                                                                ASIA
                                 $27M
                              DOOH 0%            Colombia             LATIN                                                                                             Saudi Arabia
                                                                                                                                                                               $23M
                                                                                                                                                                                                                                                               Thailand
                                                                                                                                                                                                                                                                                                PACIFIC
                                                                      AMERICA
                                                 $97M                                                                                                                                                                                                          $486M
             Ecuador                                                                                                                                                       DOOH 0%
                                                 DOOH 2%                                                                                                                                                                                                       DOOH 15%
               $57M                                                                                                        Morocco
            DOOH 8%                                                                                                        $115M                                             Inited Arab Emirates
                                     Peru
                                             Brazil                                                                        DOOH 3%                                                          $15M
                                    $28M
                                             $403M                                                                                                                                       DOOH 0%                                                                                                                  Philippines
                                 DOOH 33%
                                                                                                                                     AFRICA
                                             DOOH 31%                                                                                                                                                                                                                                                             $293M
                                                                                                                                                                                                                                                                                                                  DOOH 21%
                                  Chile                                                                                                                                                                                                       Singapore
                                                                       Uruguay                                                                                                                                                                $215M

                                                                                                                                                                                                                                                                                                                                                 Chapter 3
                                $132M                                  $10M                                                                                                                                                                                           Indonesia
                                                     Argentina                                                                                                                                                                                DOOH 18%
                              DOOH 19%                                 DOOH 0%                                                                                                                                                                                        $342M
                                                     $223M
                                                     DOOH 2%                                                                                                                                                                                                          DOOH 0%

                                                                                                                                                                              South Africa
                                                                                                                                                                              $40M
                                                                                                                                                                              DOOH 7%

                                                                                                                                                                                                                                                                                           Australia
                                                                                                                                                                                                                                                                                           $677M

                                                                                                                                                                                                                                                                                                                                                 Chapter 2
                                                                                                                                                                                                                                                                                           DOOH 35%                             New Zealand
                                                                                                                                                                                                                                                                                                                                $92M
                                                                                                                                                                                                                                                                                                                                DOOH 4%
                                            SHARE OF                                                                                                                          How to read this map?

                                            DIGITAL OOH                                                  500
                                                                                                                                                                              The size of each country is proportional to the size of the out-of-home advertising mar-
                                                                                                                                                                              ket (the net advertising revenues of OOH media companies, as estimated by MAGNA).
                                                                          10         100                                                                                      The color refl ects the share of total OOH revenues derived from digital inventory (digital

                                                                                                                                                                                                                                                                                                                                                 Chapter 1
                                                                                                                     Total OOH advertising revenues
                                                                                                                                                                              billboards etc.) in each market, as of 2016. Green means low share (below 5% e.g. In-
                                                                                                                                                                              dia), pink means very high (30% or more in the UK and Australia) as the global average
                                                                                                                                                                              is around 13%. APAC typically displays above-average DOOH penetration because of the
                                            0%                   5%            10%                 15%                    20%              25%                   30%          dense urban population, mass transit commuting and the pace of investment.
THE GLOBAL ADVERTISING                                                                                                    EUROPE
                                                                                                                                                          Sweden
                                                                                                                                                          $3,357
                                                                                                                                                     Growth 10.1%              Finland
                                                                                                                                                                               $1,300
                                                                                                                                                                               Growth 1.0%

MARKET AT A GLANCE

                                                                                                                                                                                                                                                                                                                                                Page 51
                                                                                                                                                                                     Estonia
                                                                                                                                                                                     $121
                                                                                                                                                                                     Growth 4.3%
                                                                                                                                                   Norway
                                                                                                                  UK                               $2,031
                                                                                                                  $23,662                      Growth 1.4%
                                                                                                                  Growth 5.6%

                                                                                                                                                                                                                                    Russia
                                                                                                                                                                                                                                    $5,415
                                                                                                                                          Denmark                                                                                   Growth 10.5%
                                                                                                                                           $1,979
                                                                                                    Irland                             Growth 1.7%                                                                                                                                                                                Japan
                                                                                                   $1,225                                                                      Poland                                   Ukraine

                                                                                                                                                                                                                                                                                                                                                Media Economy Report Vol. 11
                                                                                                                                                                               $2,462                                                                                                                                             $38,032
                                                                                               Growth 3.2%                                                                                                                 $605

                   NORTH                                                                                                                                                       Growth 5.6%        Lithuana                                                                                                                        Growth 2.8%
                                                                                                                                                                                                                     Growth 9.7%
                                                                                                                                                                                                  $466
                                                                                                                                                                                                                                 Kazakhstan
                   AMERICA
                                                                                                                                                                                                  Growth 4.7%
                                                                                                                                                                                                                                 $354
                                                                                                                                                        Germany                                Latvia                            Growth -4.0%
                                                                                                                                                        $22,289                                $92
                                                                                 Netherlands                                                            Growth 4.1%                            Growth 1.8%                                                                                              Taiwan
                                                                                     $4,069       Belgium                                                                                                            Slovakia Republic                                                                  $1,917
                                                                                 Growth 1.7%       $2,605                                                                                                            $357                                                                               Growth 1.4%
 Canada
                                                                                               Growth 7.6%                                                                                                           Growth 6.9%
 $10,345                                                                                                                France                                                                                                                                           China
 Growth 4,4%                                                                                                                                                                                                      Czech Republic
                                                                                                                        $11,802                                                                  Slovenia         $1,404                                                 $58,213
                                                                                                                                                                                                                                                                                                               Korea
                                                                                                                        Growth 0.9%                                                              $173             Growth 6.8%                                            Growth 7.0%
                                                                                                                                                                                                                                                                                                               $8,140
                                                 United States                                                                                                                                   Growth 6.4%                                                                                                   Growth 1,6%
                                                     $182,037
                                                  Growth 7,7%                                                                                                                                      Romania
                                                                                                                                              Switzerland                                          $475
                                                                                                                                Spain       $3,909                                                 Growth 7.0%
                                                                                                                                $6,062      Growth -0,1%
                                                                                                                                                                                                Bulgaria
                                                                                                                                Growth 7.8%
                                                                                                                                                  Austria                                       $239
                                                                                             Portugal                                             $3,027                                        Growth 5.6%
                                                                                                $603                                          Growth 7.3%                                                                                                                                                      Hong Kong SAR
                                                                                                                                                                               Hungary                                                        Pakistan
                                                                                          Growth 5.3%                                                                          $649                                                           $697                                                             $3,228
                                                                                                                                      Croatia
                                                                                                                                                                               Growth 3.4%                                                    Growth 13.3%                                                     Growth -3.0%
                                                                                                                                        $212          Itlay
                                                                                                                                  Growth 1.0%         $8,738                                                                    Turkey
                                                                                                                                                      Growth 4.4%                                                               $2,393             India
                                                                                                                                                                                                                                Growth 8.8%        $8,165

                                                                                                                                                                     Greece
                                                                                                                                                                                   MIDDLE                                       Lebanon
                                                                                                                                                                                                                                $776
                                                                                                                                                                                                                                                   Growth 11.8%
                                                                                                                                                                                                                                                                                  Vietnam

                                                                                                                                                                                   EAST Qatar                                   Growth 7.6%                                       $1,151
                                                                                                                                                                       $761                                                                                                       Growth 7.7%
                                                                                                                                                                 Growth 7.6%                                     Oman
                                                                                                                                                                                                    $436         $251                                                                   Malaysia
                    Mexico                                                                                                                                                                   Growth -2.1%        Growth -7.3%                                                           $1,360
                    $4,417                                                                                                                                                                                                                 Sri Lanka
                                                                                                                                                                     Bahrain                                                                                                            Growth 3.5%
                    Growth 8,1%                                                                                                                                                                                                                 $293
                                                                                                                                                                       $149                                                              Growth 8.2%      Singapore
                                                                                                                                                                                       Kuwait
                                                                                                                                                                 Growth 5.9%                                                                                 $1,768
                               Costa Rica                                                                                                                                                $566
                                                                                                                                                                                                                                                                                                          ASIA
                                                                                                                                                                                                                                                       Growth -3.4%
                                    $745             Colombia                                                                                                                     Growth -6.4%
                                                                                                                                   Morocco                                                                                                                            Thailand
                                                                       LATIN
                              Growth 4.4%            $1,483
                  Panama                                                                                                                                                                                                                                              $3,496
                                                                                                                                                                                                                                                                                                          PACIFIC
                                                     Growth 5.2%                                                                      $475
                     $645                                                                                                                                                                             United Arab Emirates                                            Growth -14.2%
                                                                                                                                Growth 6.6%

                                                                       AMERICA
               Growth 8.9%                                                                                                                                                                            $2,063
                            Ecuador
                                                                                                                                                                                                      Growth 1.1%
                               $372
                                                                                                                                                                                                                                                                                                                             Philippines
                       Growth -15.7%
                                         Peru   Brzil                                                                                                                                                                                                                                                                        $1,957
                                        $764    $12,582                                                                                                                                                                                                                                                                      Growth 18.0%
                                  Growth 3.8%                                                                                                                                                                                                                                           Indonesia
                                                Growth 5.1%                                                                                                                                         Saudi Arabia                                                                        $5,945
                                                                                                                                                                                                    $2,428                                                                              Growth 7.8%
                                        Chile                                                                                                                                                       Growth 0.6%
                                                                                                                         AFRICA

                                                                                                                                                                                                                                                                                                                                                   Chapter 3
                                      $1,013
                                  Growth 2.8%                                                                                                                                                Egypt
                                                        Argentina
                                                                                                                                                                                             $3,547
                                                        $4,803
                                                                                                                                                                                             Growth 9.0%
                                                        Growth 34%
                                                              Uruguay
                                                              $198                                                                                South Africa
                                                              Growth 2.0%                                                                              $1,099
                                                                                                                                                  Growth 14.4%

                                                                                                                                                                                                                                                                                                                                                   Chapter 2
                                                                                                                                                                                                                                                                                                Australia
                                                                                                                                                                                                                                                                                                $11,342
                                                                                                                                                                                                                                                                                                Growth 7.8%
                                                                                                                                                                                                                                                                                                                         New Zealand
                                                ADVERTISING SPENDING                                                                                                                 How to read this map?                                                                                                               $1,636
                                                                                                                                                                                                                                                                                                                         Growth 5.0%
                                                                                                                                              10bn
                                                GROWTH IN 2016                                                              5bn
                                                                                                                                                                                     The size of each country is proportional to advertising spending in
                                                                                                                  1bn                                                                billion USD; the color the growth rate in 2016.
                                                                                                                                                            in USD
                                                                                                                                                                                     Green means very low growth (below 2%); pale blue means

                                                                                                                                                                                                                                                                                                                                                   Chapter 1
                                                                                    GLOBAL AVERAGE
                                                                                        GROWTH                                                                                       moderate growth (3-4%). Purple and pink denote markets growing
                                                                                                                                                                                     above 10% in 2016 (India, Pakistan, Russia Philippines etc).

                                                0%             2%           4%             6%                8%                 10%               12%                14%
ABOUT MAGNA
MAGNA is the centralized IPG Mediabrands resource that develops intelligence, investment and
innovation strategies for agency teams and clients. We utilize our insights, forecasts and strategic
relationships to provide clients with a competitive marketplace advantage.

MAGNA harnesses the aggregate power of all IPG media investments to create leverage in the market,
negotiate preferred pricing and secure premium inventory to drive maximum value for our clients.
The MAGNA Investment and Innovation teams architect go-to-market investment strategies across all
channels including linear television, print, digital and programmatic on behalf of IPG clients. The team
focuses on the use of emerging media opportunities, as well as data and technology-enabled solutions
to drive optimal client performance and business results.

MAGNA Intelligence has set the industry standard for more than 60 years by predicting the future of
media value. The MAGNA Intelligence team produces more than 40 annual reports on audience trends,
media spend and market demand as well as ad effectiveness. To access full reports and databases or
to learn more about our subscription-based research services, contact forecasting@magnaglobal.com.

ABOUT RAPPORT
Rapport Worldwide is a global Out-of-Home (OOH) media specialist, with over 25 years’ experience in
connecting brands and consumers out of the home.

Part of IPG Mediabrands, Rapport’s promise is to deliver “Rewarding Connections” to our client
partners and the consumers we connect with on behalf of brands.

A blend of creativity, client-service and business know-how, combined with a deep understanding of
digital, data and emerging technologies, puts Rapport at the forefront of a new results-focused
age in OOH media planning.

For more information please visit http://www.rapportww.com

ABOUT IPG MEDIABRANDS
IPG Mediabrands was founded by Interpublic Group (NYSE: IPG) in 2007 to manage all of its global
media related assets. Today, we manage over $37 billion in marketing investment on behalf of our
clients, employing over 8,500 marketing communication specialists in more than 130 countries.

IPG Mediabrands is a new world agency group designed with dynamic marketing at its core. Our speed,
agility and data smarts ensure we continue to create growth for many of the world’s biggest brands.
IPG Mediabrands’ network of agencies includes UM, Initiative, BPN and Orion Holdings as well specialty
business units including Magna Global, Cadreon, Ansible, Society, Reprise, Rapport and the IPG Media
Lab.

IPG Mediabrands. Dynamic by Design.

Connect with us
@magnaglobal
@ipgmediabrands
@rapportww
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