Global Digital Handbook 2013

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2012/13 global digital out of home handbook update kinetic’s overview of the global digital Out of Home marketplace

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contents

Introduction - the changing shape of digital Out of Home

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Technology in Out of Home 5 Creativity in digital OOH 8 The global digital OOH marketplace 10 Global digital showcase 14 Asia Topline country overviews 18 Media owners 20 EMEA Topline country overviews 24 Media owners 28 US Topline country overview 34 Media owners 34 About kinetic worldwide 35

global digital out of home handbook update

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introduction the changing shape of digital out of home Welcome to Kinetic’s Global Digital Handbook Update for 2012/13, our overview of the global digital Out of Home marketplace.

The brave, new world of digital Out of Home is no longer such a new one – the medium has taken hold and continues to justify its ever-expanding presence in markets throughout the world. The digital Out of Home ecosystem is evolving with new media owners and networks emerging all over the globe. For example, in São Paolo, Brazil, the metro line 4 will soon be the world’s largest ever digital Out of Home installation when Terra Latin America installs nearly 2,000 digital displays throughout the line’s 11 stations.

In the UK alone in the last year, there have been more than 3,700 digital sites built and 35 brand new formats. As digital OOH becomes more scalable so the world is continuing to witness and admire the creative and flexible advantages of the medium. The London 2012 Olympics showcased the flexibility of DOOH perfectly with creative being tailored and synced to medal wins seconds after their sporting triumphs. We’re even seeing digital OOH play an increasingly sociallyconscious role in the community as it continues to be used by local authorities in high-profile criminal and missing persons cases on both sides of the Atlantic.

DOOH is not only growing worldwide but is also at the forefront of Out of Home and media creativity as a whole. The medium’s innate potential for creativity and innovation has developed in the last twelve months, with copy that can now be determined by the pace of oncoming traffic, gender recognition and targeted messaging becoming more widespread and interactive technologies such as near field communication (NFC) and augmented reality offering increasingly immersive options for the advertiser and consumer alike.

Proprietary research carried out by Kinetic indicates that consumers are overwhelmingly positive towards brands that encourage interactive and digital OOH, and that they’re becoming increasingly comfortable with the technology and the mechanisms for having a digital conversation with brands. Fundamentally, what we’re witnessing above all else is the next phase of digital Out of Home – a media pointed firmly at engagement, interactivity and innovation with the changing consumer at its heart.

We hope you find our update to the global digital marketplace useful and that the coming year continues to showcase and foster the best digital Out of Home has to offer.

A note on the sources of data for the Global Digital Handbook Update Data has been collated from Kinetic representatives from our network of offices and is based on their understanding and intelligence from the individual markets and refers to year end 2011. Every effort has been made to ensure the accuracy of the contents, but the publishers cannot accept liability in respect of errors or omissions. Readers will appreciate that the data is as up to date only to the extent that its availability, compilation and printed schedules will allow and is subject to change.

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technology in out of home interaction insights Interactivity heralds a new dimnenison to global digital OOH and with mainstream campaigns now appearing across the world, networks have created real potential for activating brand engagement in the OOH environment.

Our recommendations for maximising the impact of interactivity are derived from numerous campaigns and some real research and data capture around activation, both physical (through touch, gesture or other means) and device-led (through smartphone technology).

Kinetic has pioneered a media first in the UK market in a collaborative venture with JCDecaux. Every 6 sheet panel in the town of Reading became fully interactive for four weeks in March 2012 – thanks to an investment and commitment from JCDecaux - allowing people to download content, information, offers and directly engage with brands through an NFC or QR link to their smartphone. 13 Kinetic clients tested real interactive content to give us genuine data and insight around the current and future potential of interactivity and OOH. While much of the focus on NFC has been on mobile payment applications, the immediate opportunity appears to be in using the technology to enhance mobile marketing techniques. Education, even among smartphone users, is still paramount to foster the uptake and understanding of NFC whilst in the early stages of adoption, and we need to see more penetration across handsets.

what drives activation?

The study elicited 6,000 scans using QR and NFC-enabled devices as people freely chose to interact with communication messages for 16 separate campaigns across 300 JCDecaux 6 sheet panels in the town. The brands ranged from cars, TV channels and film releases to personal care products, drinks and grocery retailers. The results clearly show us that new technology is fuelling the public’s appetite for interactive Out of Home advertising. Over 3,000 individuals engaged and people were overwhelmingly positive about the experience, citing the ease of use of the technology (in particular NFC) as a real driver.

The study revealed that campaigns that combined relevance, dynamic content and a strong call-to-action received the strongest interactions.

There were differences in the number of interactions by genuine interest in the brand, but relevance is the key driver, coupled with the nature of the content or the presence of a valuable and tangible offer. Male-orientated brands drive higher interaction rates generally, with greater affinity to technology and video content. However there was strong female engagement across deals, ideas and social media.

Conversion and redemption rates were particularly high and exceeded our expectation, signalling a real propensity for engaging with content, data and brand offers. The average initial download conversion rate was 24% and ultimate voucher redemption - where tested - was 7%. Voucher redemptions were found to attract new customers, with activity highest where the poster site was in proximity to the store.

the full interactive choice Kinetic has partnered with Clear Channel to investigate the Out of Home interactive experience, to identify the goals and guidelines to make this experience effective and what are the consumer preferences to activate that experience into a longer-lasting and impactful brand engagement. A de-branded game was devised to test people’s interactive preferences (experience: call to action and data capture) with a competitive element and a prize-winning opportunity.

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technology in out of home Learnings demonstrate a very positive future for interactivity and activation in OOH, through the nature of the engagement people are happy to have with OOH messages, their understanding of the creative experience and an appreciation of what the future potential interactive experiences can deliver to brand relationships.

The test, also conducted in early 2012, elicited over 2,000 interactions across the 14 days (at one panel). That meant an average of 161 people per day interacted, for a considerable time of over 3 minutes (195 seconds). Interacting attracted an audience of both genders and a fairly broad age range up to the mid-40s. Reasons for engaging included...

• To be stimulated, relieve boredom • Doing something different/for a change • Attracted by incentives • To engage with brands they like

a real preference for touch Whilst strong triggers and a clear call to action are required to start the experience, intrigue is the initial attraction; people are curious and interested in this type of experience; only a minority is self-conscious. Colour and the positioning of triggers will have an impact, for example red is preferred over green, but people are much more comfortable engaging in touchscreen technology (over gesture or body motion). Having experienced the options, around 85% found touch more enjoyable and interactive; 97% found it easier to use.

data capture The rules change slightly for capturing data and information. Over half chose a direct mobile route to leaving details or as an option to engage further. Half of all selections on the screen were for smartphone activation, a further 30% were for social media engagements (where a significant minority is comfortable) and only a fifth for touchscreen, which is felt too impersonal for such details.

In terms of final activations, a similar ratio was delivered, with 57% being through smartphone and a third via social media options.

the future One consistent observation is the halo effect created around brands and how much more positive people are about brands that encourage interaction. Over 80% believe it is a good way for brands to talk to people and to promote their products and services, whilst leveraging engagement and dialogue with their customers on a long-term basis.

Furthermore, 93% say they will be likely to take notice of this type of interactive experience in the future; 3 in 4 people are likely to interact again, with over a third very likely.

Clearly there’s a strong global opportunity to leverage technology and consumer comfort around activation of their brand experience whilst out and about and in proximity to shopping and purchasing moments. The study has identified strong levels of interaction, long dwell times, consumer positivity for the experience and a positive potential brand halo effect. Significantly, there is a high propensity for further interaction and this opens the scope for increased potential in OOH for the activation of dynamic content through NFC, QR and location-led solutions.

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technology in out of home

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creativity in digital OOH

Everything Everywhere brings 4G to the UK Mobile operator Everything Everywhere launched its new 4G customer brand EE in the UK at a star-studded event held at the Battersea Power Station in London.

The iconic structure was transformed through a 4D display which told the story of the new EE brand.

The 4D animated projection saw the building open up to reveal a factory inside which featured machinery creating the ‘particles’ of the EE brand identity.

Gillette lights it up Just as the world finished watching the Opening Ceremony of London 2012, Gillette lit Boston up using ambient media to rouse national passions and wish TEAM USA luck at the Olympics.

Gillette created a spectacle of light and water featuring 60-foot holograms of Team USA athletes. The installation projected light displays on buildings throughout Boston culminating in a massive water show.

The event used six projectors and two massive screens of water vapor to display video images of swimmer Ryan Lochte and 100m sprinter Tyson Gay.

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creativity in digital OOH

SNCF Group gave Lyon a glimpse of Brussels To celebrate the new direct high-speed line which links Lyon and Brussels, SNCF Group placed a 3 meter high cube in Place de la République.

The cube had a little face-sized hole in it with the message “Take a look at Brussels” underneath. Hundreds of passersby found themselves transported to Brussels via several screens interconnected by a satellite where they were welcomed by the mayor, his official band and the people of Brussels.

The Invisible Mercedes Mercedes new F-Cell vehicle is marketed as a car that’s “virtually invisible to the environment.

That’s because the hydrogen fuel cell electric car, which converts compressed hydrogen into electricity to drive the motor, has only one emission: water vapor.

To promote the car’s invisibility, Mercedes equipped one side of the car with sheets of LEDs that showed streamed images captured by a Canon 5D Mark II camera attached to the other side of the car. The car blended into the background, making it nearly invisible.

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the global digital OOH marketplace: a kinetic perspective consistent growth Set against a backdrop of downgraded measured global media growth in 2012 and with ad growth lagging the global economy in 2011, global digital OOH has many reasons to be positive. Not only are we seeing increasingly varied, innovative and integrated digital Out of Home campaigns being executed all over the world but just as importantly we’re also seeing signs of consistent growth in maturing and mature Out of Home markets.

What is most striking about the global digital Out of Home marketplace is that all markets surveyed posted positive growth in digital OOH for the most recent year to date. Despite large parts of Europe being notable downgrades in media and fiscal forecasting terms, Italy, Germany, Netherlands, Turkey and Ireland have posted strong growth in digital OOH spend; from +62% in Turkey, +83% in Italy to an impressive +367% in Ireland albeit in this case from a low base; the growth figure in 2012 is around 30%. We’re also witnessing growth in high-profile growth markets; with India posting a considerable +70% growth in DOOH spend and with a notable upsurge in more mainstream and major brands using digital OOH.

stability If we compare the growth rates from last year, we can see that growth has slowed in the largest markets; namely China, US and the UK, perhaps an inevitable consequence of recent strong uplifts. Encouragingly we can also see that the digital Out of Home percentage of Out of Home remains low in the vast majority of markets, indicating that while growth is high there the aforementioned cannibalisation of OOH spend isn’t a trend throughout the globe and that the robust figures and impetus that digital OOH brings to the industry is a healthy additonal revenue stream with plenty more room for growth.

looking forward The insight given by these figures from the markets in the Kinetic global network is illuminating and encouraging. While the world as a whole continues to rally against the economic downturn and the digital OOH marketplace is in its relative global infancy, we’re able to draw the conclusion that future for DOOH from a global perpective is a healthy one with growth in maturing markets bolstering the already impressive performance cemented by the larger, more mature Out of Home markets. For example, in the UK digital OOH has grown further in 2012, with a 46% increase in revenue and now accounting for 19% of OOH. At Kinetic, we have made a commitment to track global digital OOH perfomance on a micro and macro scale in the years to come and we look forward to a future full of potential.

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the global digital OOH marketplace global digital OOH gross market values (USD)

Source, Kinetic, Kinetic markets only, 2011 data kineticww.com

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the global digital OOH marketplace digital OOH percentage of OOH (USD)

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the global digital OOH marketplace global digital OOH spend (%)

proportion of OOH vs. digital OOH expenditure (%)

Source, Kinetic, Kinetic markets only, 2011 data kineticww.com

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global digital showcase

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global digital showcase

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asia

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country overviews

china DOOH Gross Market Value : US$2.04bn

(Chinese RMB 12,715m) DOOH % of OOH: 36%

Growth in DOOH spend

+10%

thailand DOOH Gross Market Value: US$32.9m

(1,011mTHB) DOOH % of OOH: 32%

Growth in DOOH spend

+25%

malaysia DOOH Gross Market Value: US$13.06m (39,718m MYR) DOOH % of OOH: 7%

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Growth in DOOH spend

+9%

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country overviews

india DOOH Gross Market Value: US$13m

(709m INR) DOOH % of OOH: 4%

Growth in DOOH spend

+70%

philippines DOOH Gross Market Value: US$7.4m

(Php 302m) DOOH % of OOH: 11%

Growth in DOOH spend

+58%

singapore DOOH Gross Market Value: US$18.7m (SGD 22m) DOOH % of OOH: 15%

Growth in DOOH spend

+4% kineticww.com

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media owners

china Roadside: Tulip media, Phoenix, Metropolis Media, Advision,

China Vision, AirMedia, Focus Media Airport:

Airmedia

Transport: China Vision, Towona, CCTV online, Mindhorse

thailand Roadside: Hello Bangkok, Plan B, VGI Global Media, Broadway Airport:

JCDecaux

Transport: VGI Global Media, Plan B, Bangkok Metro Network Malls:

IJ Siam, Wrap Inc., Absolute Impact, Deelight, Etc.

malaysia Roadside: Powerscreen, City Screen, Dana Screen, AutoCity

OMS, Creative People, OOHM media Airport:

Adept Media, Focus Media, ADSTV, CMYADS

Transport: Asia Media, Focus Media, InfoScreen, Piranha Graphic

Rail Channel Malls:

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Infoscreen, ADSTV, CMYAD, Pirana Graphic Creative People, Focus Media, Big Tree

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media owners

india Roadside: Big Street, Alakh Advertising, Selvel Advertising

Enkon Pvt Ltd, Ambuja Reality, Vantage advertising,

Jagaran Engage Airport:

Times OOH, JCDecaux, Network Media, Solution TDI, Moveo

Transport: Peacock Media Ltd, Emmet, Vyoma, Transitainment

Ventures, NSR-GIV Center

philippines

Malls:

OOH Media, Ansal Media, DLF Promenade Pacific, Satyam Cinemas

Roadside: United Neon, ADSTRAT, QCreatives, OUTCOMM,

DDBS, PRIMESPOTS, Infinit Grafix, MediaPool Airport:

Airmedia

Malls:

OUTDOOR ASIA, 3D Vision, VLink, Digipost, MediaVelocity, PRIMESPOTS, SM Leasing, IDDI

singapore Roadside: Sphmbo, Mediatech, Clear Channel, Mediacorp,

JCDecaux, Serial Multi Vision, Mango Media, POAD Airport:

JCDecaux

Transport: SMRT, MooveMedia Malls:

JCDecaux, Mediacorp

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emea

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country overviews

uk DOOH Gross Market Value: US$200m

(£125m) DOOH % of OOH: 14%

Growth in DOOH spend

+24%

germany DOOH Gross Market Value: US$78m

(€60m) DOOH % of OOH: 6%

Growth in DOOH spend

+54%

spain DOOH Gross Market Value: US$19.7m

(€15m) DOOH % of OOH: 3%

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Growth in DOOH spend

+5%

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country overviews

italy DOOH Gross Market Value: US$26m

(€20m) DOOH % of OOH: 4%

Growth in DOOH spend

+83%

switzerland DOOH Gross Market Value: US$12.5m

(CHF11.6m) DOOH % of OOH: 2.5%

Growth in DOOH spend

+2%

Netherlands DOOH Gross Market Value: US$15.6m (€12m) DOOH % of OOH: 3%

Growth in DOOH spend

+20% kineticww.com

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country overviews

france DOOH Gross Market Value: US$52m

(€40m) DOOH % of OOH: 2%

Growth in DOOH spend

+20%

turkey DOOH Gross Market Value: US$9.8m

(TL25m) DOOH % of OOH: 7%

Growth in DOOH spend

+62%

south africa DOOH Gross Market Value: US$4.9m

(€3.5m) DOOH % of OOH: 2.5%

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Growth in DOOH spend

+5%

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country overviews

belgium DOOH Gross Market Value: US$1.4m

(€1.1m) DOOH % of OOH: 1%

Growth in DOOH spend

+5%

ireland DOOH Gross Market Value: US$1.8m

(€1.4m) DOOH % of OOH: 1.7%

Growth in DOOH spend

+367%

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media owners

uk Roadside: JCDecaux, Clear Channel, Ocean Outdoor, Outdoor

Plus, City Gateway, BlowUp Media, Forrest Media

Group, Primesight Airport:

JCDecaux, Eye

Transport: CBS Outdoor, JCDecaux, Primesight Malls:

JCDecaux, Clear Channel, CBS Outdoor

Retail:

Amscreen

germany Roadside: AF-FIX, Amscreen, Autobahn Tank&Rast,

Eventronic,NDA,PosterNetwork,Telekom Deutschland,

TripleDoubleU,Videoboards Germany,WallDecaux Airport:

italy

Media Frankfurt, MSO Medien Service,

Neo Advertising, ontop media, Telekom Deutschland, Strรถer Digital

Transport: mobil Info,MSO Medien Service,Strรถer Digital

WallDecaux

Retail:

Neo Advertising, Strรถer Digital, Telekom Deutschland, United Ambient Media, Westpoint Media

Roadside: Coin Airport:

Classpi Digital, IGPDecaux, ICMoving, CBS

Transport: Classpi Digital, IGPDecaux, Grandi Stazioni, Exomedia,

MDA Malls:

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CBS, Connect, Grandi Centri

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media owners

switzerland Roadside: Citylights Airport:

Neo advertising, Clear Channel

Transport: APG Traffic, TPG, APG Digital Sales Malls:

Clear Channel, Neo advertising, IP Multimedia

netherlands Roadside: Interbest, Medialandscape, Ngage Transport: Central Station, Ngage Malls:

Medialandscape, Centercom, Ngage, Narcomm

turkey Roadside: Outdoor TV, CMS, NGM Airport:

Portline, Bia Medya, Digiboard

Transport: Fors Medya Malls:

Digiboard, Glass Screen, NGM, Turkmedya, All Screen, Mediaboard, CMS Medya

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media owners

south africa Roadside: Primedia, Alive Advertising, Wideopen Airport:

Primedia Provantage, Continental Outdoor

Transport: Provantage, Massiv TV Malls:

Primall, Continental Outdoor, One Digital

belgium Roadside: Belgian Posters, Euromobile, Mediareef, Moving Ideas, Spicy Motion Airport:

JCDecaux, Air Terminal Publicity

Malls:

insert, Men Ads Work, Euromobile

france Roadside: Defi, Medialarge, Clear Channel, JCDecaux Airport:

JCDecaux

Transport: Mediagares, Metrobus Malls:

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Clear Channel

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media owners

ireland Transport: Bravo Outdoor Malls:

CBS Outdoor

Retail:

Magmal, Visualise

spain Roadside: Clear Channel, Dyynadsys, Cemusa Airport:

JCDecaux Airports, Publimedia Airports

Transport: On Advertising, Comfers Malls:

Alooha, Animo TV, Clear Channel, JCDecaux, Cabitel, GWM, Impact Media, Publimedia Gesti贸n (iWall)

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us

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media owners

us DOOH Gross Market Value: US$2.05bn

DOOH % of OOH: 29%

Growth in DOOH spend

+11%

country overview Roadside: Clear Channel, CBS Outdoor, Lamar Advertising,

Adams Outdoor Airport:

CNN Airport, JCDecaux, Clear Channel, Monster Media, RMG, Brand Connections

Transport: Verfone, Titan, CBS Outdoor, Clear Channel Malls:

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Adspace, EYE Corp, Westfield

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about kinetic worldwide Kinetic Worldwide is the global leader in understanding how brands can connect with people’s lifestyles and the environments they engage with when away from the home. Our expertise and insight allows us to deliver solutions for our clients that achieve brand and marketing goals. If there is an effective way to communicate with people outside of their homes and on the move, we will seek to find it.

Kinetic is a WPP company and part of the tenthavenue performance marketing division. Kinetic’s expertise and insight helps deliver solutions for clients that achieve ambitious brand and marketing goals.

Digital screens are now an important communication opportunity to supplement roadside posters, travel and leisure locations and all kinds of interactive experiences. Some of these may involve mobile phones; others, simple calls to action or time and location-based messaging. We have an ongoing commitment to understanding and engaging with people on-the-go. Kinetic has developed centres of excellence in digital and aviation media, research, insight and data, mobile marketing and OOH printing and production. We seek to maximize the impact of our clients’ investments through strategic thinking, proprietary tools, and the intelligent application of scale.

Kinetic’s network reaches across the globe. From offices in 33 cities in 23 countries, we offer dedicated expertise in consultancy, planning and buying solutions and have developed strong partnerships with clients, agencies, suppliers, media owners and technologists.

Our specific connection to digital OOH extends to unrivalled expertise and objectivity in this expanding environment in our medium across the UK and Europe

For more information about Kinetic, please go to www.kineticww.com or follow us on Twitter on twitter.com/kineticww

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