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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.
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
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
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
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
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
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
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
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% po l or ne or b ia on ia ns ia do do an ed x ed ti ed a ut ay au ut t on Ch ec Tr M st on !M M ry O l O R ec er ar ri he rs Ea us ia fr r r le s K te H N a ro ea ea m D te ed ds us ut c si W al O P JR JC Ex La Fo St Cl Cl In Stroer M A A A A O O R 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 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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