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Technology Changes Everything

Technology Changes Everything. As with all other advertising media, out-of-home is just as vulnerable to and enhanced by technology.

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Technology Changes Everything

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  1. Technology Changes Everything • As with all other advertising media, out-of-home is just as vulnerable to and enhanced by technology. • According to the Outdoor Advertising Association of America (OAAA), 2015 revenues increased 4.6% to a total of $7.3 billion, a significant improvement over 2014’s weak numbers. • The 5.8% revenue increase during Q4 2015 was the best quarter ever, as measured by OAAA, and represented the 23rd consecutive positive quarter since the recession.

  2. Major 2015 OOH Advertisers • The top 5 categories were Miscellaneous Local Services & Amusements, +9%; Retail, +8%; Government, Politics and Organizations, +6%; Automotive Dealers & Services, +6%; and Financial, +4%. • The top 10 advertisers were McDonalds, Apple, Verizon, Warner Bros Pictures, Metro PCS, Coca-Cola, GEICO, Universal Pictures, Chase and Samsung. • Of the top 20 parent company OOH advertisers, six were technology enterprises: Apple, Deutsche Telekom AG, Verizon, AT&T, Google and Samsung.

  3. A Multitude of Choices • Billboards – 668,239 units • Street Furniture – 49,781 units • Transit – 511,950 units • Alternative – 1,316,354 units

  4. Share Decreasing, Revenues Increasing • Despite the increased spending on OOH during 2015, MagnaGlobal and OAAA list it last in market share of all major media at 4.4%. • eMarketer measured OOH’s 2015 share as even lower, at 4.0%, and forecasts it will decline to 3.4% by 2020. • The decline in share is a bit misleading, however, since total US media ad spending will increase 28.2% from 2015 to 2020, and OOH ad spending will increase 8.3% during the same period.

  5. The BIA/Kelsey Perspective • BIA/Kelsey data for advertising spending in local TV markets allocate a larger share for OOH: 5.7% during 2015 and increasing very modestly to 5.8% by 2019. • Annual OOH local revenue for 2015–2019 mirrors this modest growth, increasing from $8.039 billion to $9.199 billion, respectively • The top 5 advertiser categories in OOH ad spending growth for 2016–2019 are forecast to be health care, +35.2%; leisure/recreation, +25.3%; retail, +15.6%; general services, +10.9%; and restaurant, +10.7%.

  6. Who’s Exposed to Billboards? • Data from The Media Audit for Pittsburgh, PA; Cincinnati, OH; Kansas City, M0/KS; and San Diego, CA, reveal the demographics of adults, 18+ with heavy exposure to outdoor, which is measured as those driving 200+ miles per week. • Men have considerably more exposure to outdoor than women in Pittsburgh, Kansas City and San Diego, averaging a bit more than 60%, but the shares are essentially equal in Cincinnati. • In all four markets, adults, 25–64 are those with the heaviest exposure to outdoor, which only makes sense as these are working adults and those involved in shopping and other activities throughout the week.

  7. A Billboard Audience Exception • It should not be surprising, therefore, that adults, 55+ have the largest share of those with light or no exposure to outdoor in these four markets. • An interesting exceptions is Cincinnati, where 42.4% of adults, 25–34, and 40.7% of adults, 35–44, have no exposure to outdoor, although this is the core audience in all four markets. • This exception makes sense because the data also shows that 32.5% of them are African American. This group has a higher unemployment rate, especially among the young, and likely owns fewer cars and travels shorter distances to and from work.

  8. Digital OOH Changes the Game • The big story in OOH is how digital technology is adding a new dimension to billboards and signage, first by putting them in motion and second connecting them to the growing digital network of consumers and retailers. • According to eMarketer, digital out-of-home paid media (DOOH), which eMarketer defines, as “advertising delivered via Internet-connected digital screens,” will account for 43.9% of all OOH paid media during 2016, or $3.29 billion of $7.5 billion. • By 2018, DOOH’s share will exceed 50% (52.6%), or $4.08 billion, and increase again to a 57.0% share, or $4.47 billion, during 2019.

  9. Putting DOOH to the Test • In its May 2015 Digital Billboard Study, Nielsen conducted surveys in five US markets – Atlanta, Cincinnati, Minneapolis, Phoenix and Tampa – among adults, 18+ and for 30 OOH advertising campaigns on selected digital billboards. • Of all travelers surveyed, 75% said they noticed a digital billboard during the past month and 60% said they noticed a digital billboard during the past week. • The Nielsen study also found that the #1 action survey participants took after viewing a digital billboard in all five markets was “talked about what was seen with friends and family,” scoring as high as 47% in Cincinnati.

  10. DOOH in the Real World • A General Motors billboard in Chicago is equipped with a camera that identifies the front grills of 4 non-GM models. The first board is linked with another 1,000 feet ahead with a message that compares the Chevy Malibu with the competing brand. • In New York City, the LinkNYC program is replacing more than 7,500 pay phones with free Wi-Fi kiosks and digitally connected signs. Coors Light is using the system to direct consumers to the nearest store that stocks the beer. • According to Nielsen’s October 2015 Airports Study, more than 75% of travelers said they had noticed digital OOH ads. More than 34% then visited the Website or used the app of the advertiser to research the product or service advertised.

  11. Moving Ahead with MOOH • MOOH is the integration of mobile and out-of-home media. • Placed, a location analytics company, announced during early February 2016 its “Out-of-Home Attribution,” a service with the capability to connect OOH exposure to in-store traffic. • The analytics Placed is able to measure and provide have evolved from simple proximity to include the angle, distance and direction of people viewing an OOH message.

  12. The MO of MOHBE • MOHBE is the integration of mobile and beacons with out-of-home media. • According to Gimbal, a location and proximity-aware mobile engagement platform, Adaptive DOOH is the combination of mobile users’ location and time. Displays can be customized by dayparts to reach weekday commuters or weekend visitors. • With Linked MOHBE, in-store beacons can recognize via the consumer’s smartphone app that he or she was exposed to a beacon-enabled OOH ad. This provides direct attribution between the OOH ad and an in-store visit.

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