Digital Out-of-HomeIndustry Outlook 2009

Ad Server for DOOH

SaaS / Managed Services

Largest Connected Network

165 Networks

25 Countries

25,000+ Venues

20,000,000+ Content

Distribution/Daily

100,000,000+ Impressions

Weekly

Music stores

Officebuildings

Grocery stores

Healthclubs

BarsVet

offices

Videorental

BroadSign Fact Sheet

How many different types of advertising can we name?

The Media Landscape

Radio, TV, newspaper, magazine, direct mail, internet (banner ads, interactive), billboard (bulletin, posters, murals), end cap, side cap, shelf talkers, coupons, flyers, mobile, airline video/magazine, airport security bins, coffee sleeve, pizza boxes, dry cleaning bags, egg carton, subway train, subway station, subway platform, on bus, in bus, on taxi, in taxi, street furniture, sports teams, arena and venue, sporting events, blimp, tabletop, hubcap, kiosk, handrail, napkin, etc…!

The Media Landscape (continued)

LESS MORECONSUMER INTERACTION & ENGAGEMENT

AD

VE

RT

ISIN

G S

HA

RE

GR

OW

TH

*

-10

FLA

T+

10

OUTDOORMAGAZINE

RADIO

TELEVISION

NEWSPAPER

Source: Ad Age Leading National Advertiser Report 1961-2007

Media Landscape 1990 - 2000

Mobility Is Driving Change

“US Residents spend twice as much time outside their homes and workplaces than they did just a few decades ago” PQ MediaAlternative Out-of-Home Media Forecast, 2007-2011

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

7 am

8 am

9 am

10 am

11 am

Noon

1 pm

2 pm

3 pm

4 pm

5 pm

6 pm

7 pm

8 pm

9 pm

10 pm

11 pm

Midnight

1 am

2 am

3 am

4 am

5 am

6 am

Time

Per

cen

tag

e

Source: Simmons Data 2007 – Adults 18-24, Nielsen: Viewing Data – Adults 18-24 Source: Simmons Data 2002 – Adults 18+, Nielsen: Viewing Data – Adults 18+

Gone From Home versus In Home Media Time

% General PopulationGone from home

% General PopulationWatching TV

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

7 am

8 am

9 am

10 am

11 am

Noon

1 pm

2 pm

3 pm

4 pm

5 pm

6 pm

7 pm

8 pm

9 pm

10 pm

11 pm

Midnight

1 am

2 am

3 am

4 am

5 am

6 am

Time

Per

cen

tag

e

Source: Simmons Data 2007 – Adults 18-24, Nielsen: Viewing Data – Adults 18-24

Source: Simmons Data 2002 – Adults 18+, Nielsen: Viewing Data – Adults 18+

Gone From Home versusIn Home Media Time

% 18-24 Year OldGone from home

% 18-24 Year OldWatching TV

LESS MORECONSUMER INTERACTION & ENGAGEMENT

AD

VE

RT

ISIN

G S

HA

RE

GR

OW

TH

*

-10

FLA

T+

10

OUTDOOR

RADIO

TELEVISION

ONLINE

MOBILE

MAGAZINE

NEWSPAPER

PLACE BASED AD NETS

Source: Ad Age Leading National Advertiser Report 1961-2007; reported share estimates for mobile, online and place based PQ Media

Media Landscape 2000 – 2010E

Ad Investment Compared to Consumer Behavior

Source: Jack Myers Media Forecast 2008; Ipsos Online Panel 2008

Televisionis an engaging visual medium with mass reach

Mobileis consumer focused and highly targeted

Onlineis ‘just in time’ delivery with accountability

Place based is all the above plus proximity to purchases

Televisionis an engaging visual medium with mass reach

Mobileis consumer focused and highly targeted

Onlineis ‘just in time’ delivery with accountability

Digital Out-of-Home has “The Power of Proximity”

0.3% 0.4%4.0% 4.2%

6.7% 8.2%12.0%

27.5%

37.7%

New

spap

ers

Rad

io

Con

sum

er M

ags

B2B M

ags

Bro

adca

st T

V

Cab

le T

V

Trad

ition

al O

ut-

of-H

ome

Dig

ital O

ut o

f H

ome

Onl

ine,

Mob

ile &

Ent*

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

1 4

5

9

83276

Ad Rev Share Rank

Revenue Share vs. Growth Rate

Crossing the Chasm:It’s All About The Revenue

Testing funds

Local, Regional, or Opportunistic dollars

“Part of the ad plan”: Success!

Stage 1:

Stage 2:

Stage 3:

Take Advantage Of Today’s Consumer Driven Media

Landscape

8AM9AM

10AM

11AM

12PM

1PM2PM

3PM4PM

5PM6PM

7PM8PM

9PM

10PM

11PM

7AM

12AM

HEALTH CLUBS HEALTH CLUBS

GAS PUMPSGAS STATIONS

RESTAURANTS / BARS

ELEVATORS / OFFICE BUILDINGS

RETAIL / SUPERMARKETS / MALLS

TRANSIT TRANSIT

GOLF COURSES

CINEMA

HEALTH CARE

GOLF COURSES

SPORTS/ENTERTAINMENT ARENAS

Use Time, Place & Context to Impact Consumers

The power of place

Networks: Suppliers:

OVAB Member Companies

8AM

9AM

10AM

11AM

12PM 1P

M2PM

3PM

4PM

5PM

6PM

7PM

8PM

9PM

10PM

11PM7A

M12AM

790,000+ screens

3+ Billion impressions per month

57,000+ venues

The Power of Place™

Audience Metrics Guidelines

• C3• Program/Daypart

• Click Throughs• Page views

• ¼ hr. Program

• Readership• Daily Readership

• Eyes on Impressions

•Venue Traffic

• Audience

• Audience

•Traffic

• Audience

• Audience

• Audience

• Broadcast• Cable

National TV

• Search• Display

Internet

• National• Local

Radio

• Magazine• Newspaper

Print

• Static BillboardOutdoor

• Place Based Networks

Digital OOH Ad

Networks

• Average Ad Unit Impressions • Audience

Media Currencies

Venue Traffic

Vehicle Traffic

Vehicle Audience

Average Unit Audience

As audience metrics are refined to more closely approach exposure to advertising the value of the media currency metrics increases.

Average Unit Audience:Increased Value

For more information visit:

www.ovab.org

For the Network Planning Guide:

www.ovab.org/content/resources

“Team Fox” Campaign Assessment

October 2008

Background and Objectives Background

Team Fox in association with OVAB, n2, Deutsch, and switch f/x developed a ad campaign to run6/16 – 8/19/08.

Advertising Objectives Generate awareness for Team Fox Increase clarity about Team Fox Drive action & participation

Media Approach The campaign ran exclusively on 22 OVAB

member networks, providing a clean read on the impact and effectiveness of digital & video OOH ad networks.

There is a higher number of people on the post wave that say they have heard of Team Fox.

19% 23% +20%

Post-CampaignAugust(n=400)

Pre-CampaignMay 2008(n=500)

Percentage Change Pre to Post

(AAWBR) How familiar are you with each of the following grassrootsDifference is statistically significant at the 80% confidence level.

% Who they have heard of

Awareness Increased 20%!

Advertising awareness increases after the campaign

• Also, recognition of the ads was higher for those markets that had a higher level of impressions.

5%

6%

6%

10%

National(n = 500 / wave)

High Impression Markets

(n = 247 pre / 252 post wave)

Aided Ad Recall

7%

12%

Ad Recognition by Market Grouping

High Impressions(n = 223 post wave)

Low Impressions (n = 219 post wave)

Pre-Wave

Post-Wave

AAWAD Which of the following grassroots volunteer efforts that benefit medical research have you recently seen or heard advertising for?Differences are statistically significant at the 80% confidence level.

• Team Fox association with the Michael J. Fox Foundation increased from 46% vs. 51%.

• Team Fox association with Parkinson’s research increased from 50% to 59%.

ASSOC2 Which of the following organizations do you think Team Fox is affiliated with?CURE Which of the following diseases do you think Team Fox is dedicated to finding a cure for?Difference is statistically significant at the 80% confidence level.

Brand Clarity Increased up to 18%!

• The ad campaign reinforces this grass-roots nature• After the campaign, more than half of people associated

“Team Fox” with the statement “a group anyone can get involved in” (57% vs. 43%).

57% Agree that “Team Fox is a group anyone can get involved in”

BRATT1 Please choose as many or as few of the grassroots volunteer efforts that benefit medical research as you think applies to each descriptionDifference is statistically significant at the 80% confidence level.

Grass Roots Awareness Grew 33%!

• The campaign seemed to motivate people to talk positively about “Team Fox”.

• We found an increased number of people report having heard others talking positively about “Team Fox”.

4%

7% High Impression Markets

Have heard positive things about Team Fox recently

Pre-Wave

Post-Wave

[BUZZ] Which of the following grassroots volunteer efforts that benefit medical research have you recently heard people talk about, including friends, family, blogs, or news articles? BUZZTONE Please indicate whether what you heard was primarily positive, primarily negative, both positive and negativeDifference is statistically significant at the 80% confidence level.

Buzzworthy– People are Talking

• Using Google analytics, the search term “Team Fox”:– Was searched 20%+ more than

the same period in 2007.– Search really takes off in the later

part and after the campaign.

Google Search Index for "Team Fox"(Change from 2007 - 4 Week Average)

-60%

-40%

-20%

0%

20%

40%

60%

1-Ju

n8-

Jun

15-J

un

22-J

un

29-J

un6-

Jul

13-J

ul

20-J

ul

27-J

ul

3-Aug

10-A

ug

17-A

ug

24-A

ug

31-A

ug

7-Sep

14-S

ep

% C

ha

ng

e f

rom

20

07

Going Viral! – “Google” Team Fox

“Likelihood to donate time to Team Fox” doubled in markets with higher levels of impressions

Pre-Campaign 4%

Post-Campaign 8%

PBBN For the following grassroots volunteer efforts that benefit medical research, please indicate all the actions you are likely to take. Difference is statistically significant at the 80% confidence level.

Motivation to act Increased 100%!

• Digital & Video OOH Networks Can Increase Brand Awareness– Illuminate something here

• Digital & Video OOH Networks Can Communicate a Clear Message– Despite the various formats and venues, the message

was clear across the networks and the campaign increased familiarity with Team Fox

• Digital & Video OOH Networks Motivates Action– Google searches increased dramatically

• Key conclusion:– Digital & Video OOH Networks can be a valuable…

Conclusions

Trends for 2009, beyond

• Business Models • Consolidation or Attrition?• Standards & Research• 21st Century Media Mix

• Niche is the new Mass……….

Retail – The Awakening Giant

Contro

l

Consolidation or Attrition?

“I see dead people”

Research• Too expensive, need alternatives• Internet has proven the trend• Future of DOOH measurement

– Beyond measurement by ad driven actions

Intercept people in their work, play, and social routines.

Coffee Shop

Sports BarRestaurant

ElevatorGas Station

Taxi

Video Store

Health Club

ATM Dentist

Lobby Restaurant

Convenience Store

Home Office Office

M O R N I N G N O O N E V E N I N G

Home

Methodology: Life Pattern Marketing

Health Club Coffee ShopHotel KioskGolf CourseSports BarExecutive Airport

Grocery StoreHealth ClubDental OfficeShopping at MallSalonDVD Rental

E V E N I N G

N O O NM O R N I N G E V E N I N G

N O O NM O R N I N G E V E N I N G

N O O NM O R N I N G

Reach Sarah – Alpha Mom Reach the Lopez Family – Hispanic Family Reach Tom – Business Professional

Gas StationVeterinary ClinicConvenience StoreRetail – EntertainmentAuto Maintenance StoreFamily Restaurant

DOOH Targets

63%Digital Signage

56%TV

57%Magazine

47%Internet

40%Newspaper

37%Radio

58%Billboard

Source: SeeSaw Networks – OTX Digital OOH Media Awareness & Attitude Study 2007

Percentage of people who report that advertising on the media catches their attention

10%Mobile Phone

Percentage of people who report that they pay “some” or “a lot” of attention to advertising on the media

52%

45%

44%

40%

40%

33%

32%

TV

Magazine

Digital Signage

Internet

Newspaper

Radio

Billboard

27%Mobile Phone

Base: Among those that have seen ads in the media in the past 12 months

DOOH Has Stopping Power

58%Digital Signage

DOOH is Unique and Entertaining

39%TV

37%Magazine

29%Internet

23%Newspaper

23%Radio

33%Billboard

Percentage of people who report that advertising on the media is unique

Percentage of people who report that advertising on the media is entertaining

56%TV

39%Magazine

48%Digital Signage

31%Internet

21%Newspaper

35%Radio

32%Billboard

Source: SeeSaw Networks – OTX Digital OOH Media Awareness & Attitude Study 2007

Base: Among those that have seen ads in the media in the past 12 months

Burger King ahead of its time – “have it your way”

What if in a digital world……. A recipe strategy that “gets simpler” as the day goes on and people have less

time to prepare

“Hand” a consumer exactly what they are looking for…when they are looking

Meat lovers get a meat pizza, vegetarians get a veggie pizza, mom’s with kids get variety and singles get single serve…all in a single media buy at the same time

We are at a cross-roads and able to take the “what if” path Technology/vehicles are now scaleable

Digital share of spending mix is now sizable

Sellers selling cross-channel digital networks

The 21st Century Media Mix Are we there yet?

• Digital Media changes everything

• Digital Media is a cross of form and function

• Map out all potential routes

• Start with the end in mind

The 21st Century Media Mix In Perspective

• Consumers choose when, where and how they get information– DOOH networks provide unique touchpoints

• Audience measures are reliable and comparable– Innovation in media research driving reliability and OVAB

Guidelines provide solid framework

• Fastest growing media segment by revenue second to search– Investment growth always follows valuable audiences

• DOOH is a more accountable media– Demographic profiles are strong and behaviors in venues are

predictable

• Opportunity to stake a claim– History proves first movers gain tremendous advantages

Why should invest now?

Thank You

Brian DushoBroadSign International, Inc.brian.dusho@broadsign.com

www.broadsign.com