In 2010 DOOH was worth US$3bn dollars in advertising revenue per year. Today it is almost 50% split in revenue compared to traditional OOH. This is an industry which has gone through some golden years, and recently shakeups as large networks like RMG buy smaller players to increase screen footprint.

1. Synopsis of
Digital out of home media industry
May 2011

2. Research aims
Definition and fragmentation
Industry performance
What we can expect in the next two years
What we can learn from others

3. Definition and
fragmentation

4. Definition
Out of Home Digital Media is the
frontier between television, the
internet, mobile, interactive
terminals and the traditional
billboard or poster.
http://en.wikipedia.org/wiki/Out-of-home_advertising

5. 2 categories of dooh
Digital Place Based Networks (integrate targeted
entertainment and/or info programming with ad pods
narrowcast on digital video screens)
Digital Billboards/Signs (advertising-only messages
through screens equipped with LED or LCD techs)
http://en.wikipedia.org/wiki/Out-of-home_advertising

6. fragmentation
Fragmentation
in US market
http://www.coadydiemar.com/html/mm_volume6_2011.html

7. Industry fragmentation
Players (220) Types Key geographies Emerging Categories Delivery
(4) markets (16)
CBS Outdoor Network Americas US / Canada, D. Place- Microtiles
Operators Mexico based (DPN)
Clear Channel Middle East / Africa LCD
Aggregators Brazil D. outdoor
Neo Advertising Asia Pacific LED
(DBB)
Speciality UK
Zoom media & Europe Organic LED
agencies Cinema
Marketing Germany
Wi-Fi
Venues Retail
Brand France
Cellular 3G
Connections Brands office
Spain
WAP
Gas Station TV entertainment
Italy
QR Codes
NBC Everywhere transit
Russia
Mobile apps
Premier Retail roadside
Japan
Networks (PRN) Bluetooth
China
RMG Networks SMS
South Korea
Cemusa Inc NFC
Australia
CNN Airport 3D
Network India
SaaS or ASP?
rVue Middle East &
Africa
Seesaw Networks
AdCentricity Dynamic,
fragmented, and
... rapidly evolving
space
http://dse-365.ascendeventmedia.com/ExhGuide.aspx?p=64#1512

8. Venue granularity
Further
granularity can
be applied
http://www-958.ibm.com/software/data/cognos/manyeyes/visualizations/digital-
out-of-home-media-categori-2

9. Patrick quinn interview from pq media
http://www.youtube.com/watch?v=i4Bc-8paLMk

10. Milestones 2010
Feb 2010. Disney + Feb 2010. LocaModa, June 2010. PepsiCo,
Google bid to invest in launch DOOH app store signs multi-year,
Bus Online in Shanghai. inc Foursquare multibrand agreement
with Gas Station TV.
April 2010. Nielsen 2010. Revenue increased 2010. 16% DOOH
becomes the accepted by10% and DOOH share of growth totaling >
audience measurement the OOH market to 9.4%, $6.47 bn.
tool. despite bad economy

11. Milestones 2011
Jan. Access 360 Media, digital Feb. 7-Eleven TV will reach March. Al Barq installs
networks in stadiums, arenas more than 200 million innovative Digital Media Units,
and shopping malls, secured shoppers monthly – 4th largest adding 58 new screens in
$12mil in capital TV channel – worth $75mil. Khalidiyah Mall
April. RMG predict 25% of April. RMG + Blue Bite deploy May. VisionChina expands
networks to merge or be first NFC (Near-Field- transport coverage add 3 new
acquired in the next 1-2 years. Communication) technology. lines.

12. Industry reaching $1bn in revenue
DOOH DOOH reaching $1bn
in revenue held back
by fragmentation
mobile
internet
Years 0 2 4 6 8 10

13. Pq media report
The PQ Media Global Digital Out-of-
Home Media Forecast 2011-2015 is the
most comprehensive source of strategic
intelligence used by leading DOOH
operators due to its breadth and depth of
data and predictive analytics.
It also includes five-year
forecasts, five-year histories,
and a wealth of other
exclusive data, analytics and
insights.
http://www.mediavataar.com/news.php?id=735
http://www.pqmedia.com/globaldigitaloohforecast-2011.html

14. industry performance

15. Key markets
The U.S. remained the largest global market, while
China was the fastest growing.
China currently leads the world in the number of digital
signage displays deployed and number of NASDAQ IPOs,
with the country's biggest digital signage firm,Focus
Media Holding, alone operating more than 120,000
screens.
http://knol.google.com/k/how-big-is-the-digital-signage-industry-in-china#

16. Digital versus traditional
2013 forecasted
OOH Ad spend US
dooh2010outlookv4ltd-us-100426184926-phpapp02.pdf

17. Dooh spend
http://www.digidaydaily.com/stories/the-quiet-digital-revolution-in-outdoor-1/

18. Dooh spend split in us 2010
Digital place-based networks
$3.5 billion in sales
Digital billboard and signage
16% – 17% growth in 2011
25%
$500mil
75%
$1.5bn
DPN made 3 times
larger than DBB.
PQ Media

19. Venue granularity
Monthly DOOH
screens viewed by
venue 2010.
dooh2010outlookv4ltd-us-100426184926-phpapp02.pdf

20. Campaigns (RFPs) by industry in Q4 2010
The telecommunications
industry represented more
than 50%
http://www.marketingcharts.com/direct/telecom-leads-q4-dooh-rfps-
16131/adcentricity-q4-top10-venue-inclusions-by-subcategories-feb11gif/

21. Campaigns (RFPs) by venue in Q4 2010
Long dwell times, interactivity,
social nature and consumer
connectivity options within these
environments saw growth
http://www.marketingcharts.com/direct/telecom-leads-q4-dooh-rfps-
16131/adcentricity-q4-top10-venue-inclusions-by-subcategories-feb11gif/

22. Source: Nielsen (4th Screen Report, November 2010) - modified to reflect HCMN/Outcast/PumpTop merger.
Top 10 networks
Largest DOOH Networks - based on 18+ Visits
Total Day
Exposures/Vi
Company 18+ Visits sit Total Exposure
Premiere Retail Networks 127,552,877 0.5 61,535,226
(PRN) HDTV
Best Buy 32,136,859 0.7 22,961,442
Outcast/PumpTop/HCMN 22,883,180 1.5 33,668,310
Zoom Fitness 18,277,601 1.8 33,310,401
indoorDIRECT 16,571,970 0.9 14,596,469
GameStop TV 14,754,089 1.2 17,356,880
RMG Fitness 10,467,244 1.5 15,857,875
TargetCast 10,264,337 5.1 52,308,475
The Hotel Networks 9,827,248 2.3 22,667,844
TouchTunes 7,368,487 13.9 102,072,577
Access 360-AMNTV 5,494,428 3.6 19,549,174
AMI 3,441,743 11.4 39,218,884
http://www.coadydiemar.com/html/mm_volume6_2011.html

23. A few Key players – us/europe
Description Locati Venue / industry Screens Reach
on
RMG networks offers advertisers the ability US In-Flight Entertainment, 200,000 60 million
to reach consumers using its Fitness Entertainment, screens viewers every
portfolio of place-based digital Point-of-Care, mtvU, Taxi month
networks and NYTimes.com
National largest digital in-theater US Cinema 17,300 650 million
CineMedia network. 170 Designated screens
Market Areas (DMAs) (49 of
the top 50)
Captivate Elevators and lobbies of large North largest in-office network 8,900 Reaches 3mil
urban office buildings and Americ in US. Nearly 1,000 screens consumers.
suburban office campuses. a buildings in 15 of the top 59 million
20 major metro areas advertising
or Designated Market impressions per
Area (DMAs) month
CBS Outdoor It is the third largest outdoor US, Transit – bus shelter,
media owner in revenue Europe underground
terms. , UK
Premier Retail a network solution provider Retail 64,000
Networks screens.
(PRN) 10,000
venues.
CNN Airport satellite television network Global Airports 48
Network broadcasting general news, airports
weather, stock market

24. A few Key players – asia
Description Location Venue / industry Screens Reach
Bus Online China's No.1 in-bus digital China Transit - buses
mediawith revenue of
$US45mil
Digital Media advertising solutions for China, Transit - rail 4.3 million
Group (DMG) subway systems in China. Shanghai. passengers in
Shanghai.
Expecting 9
million by 2013.
Air Media operates the largest digital China Airports. In-flight. 32 airports,
(AMCN) media network in China inc the 15
dedicated to air travel largest in
advertising China. 8
airlines, inc
the 3rd largest
Focus Media China's largest Digital Media China office lift lobbies, 165,000
(FMCN) Group shopping districts, screens.
and residential 96 cities.
complexes
Vision China largest out-of-home China Transit 60,000 26 million per
advertising networks using screens. month
real-time mobile digital 17 cities.
television broadcasts
Asia Media It operates the country's Malaysia Transit – buses and 3,000 screens
Largest Transit-TV Network. trains
Be Digital Subsidiary of Click Grafix, Malaysia Restaurants. Links 40
southeast Asian distributor DOOH, SMS, Web restaurants
for technology suppliers
including Scala

25. What we can expect
in the next two years

26. strengths
Despite the economic downturn, digital billboards
generated 6-10x more revenue per month than static
Equipment and infrastructure costs are falling
Consumers are spending more time out of the home
than ever, twice more today than 30 years ago.
Interactivity is promoting longer dwell time.
TV is fragmenting decreased effectiveness of traditional
advertising and pushing clients to find new mediums
http://m.clickz.com/clickz/column/1717540/digital-out-home-landscape-
brief

27. weakenesses
No critical mass – TV’s tens of millions vs. DOOHs
thousands
Agencies are seeking methods to better plan and buy
DOOH more efficiently.
Capex for new new tech impacting profit margins and
sales teams too expensive to develop DOOH network.
Standardizing audience measurement to compete with
other media

28. opportunities
Audience segmentation (age and sex)
Image-recognition systems for targeting advertising.
Narrowcast networks eg for dental clinics.
“Pay-per-Look” where advertiser charged for the number
of eye-contacts with the screen.
New LEDs with black-base will improve image quality of
DOOH.

29. threats
Content bias towards video content giving TV /
broadcasters an edge.
Competition for other merging media remains stiff
(mobile and social).
Fragmentation will continue to disrupt revenue until
further consolidation occurs.

30. Industry life cycle
Downturn , mergers and
acquisitions reduced 70% of DOOH controlled by
Ruled by innovation.
competitors and increase 10 networks. Further
Competitors creating
screens. consolidation required.
unique value.
Gold rush Shakedown Breakout
2003-08 2008-11 Post 2012
http://11thscreen.com/2010/11/inside-look-at-dooh-forecast-via-pq-media/

31. Scale not value
“…a lot of M&A activity going on right now, both inside and
outside of our sector. Second, most of the perceived value of
these acquisitions still lies in the pursuit of scale, not synergy.”
“To date, companies like Zoom and RMG have gained scale by
purchasing smaller network operators (or just their assets) …
to allow them to sell onto a much larger number of screens.”
“These practices make DOOH more attractive to advertisers
who are accustomed to purchasing both reach and frequency in
very large numbers.”
http://www.wirespring.com/dynamic_digital_signage_and_interactive_kiosks_j
ournal/articles/DOOH_Networks__Will_There_Be_Only_One_-781.html, Bill
Gerba, DOOH Networks: Will There Be Only One?

32. Mergers, acquisitions, closures
42Media Group goes bankrupt Muzak goes bankrupt
Access 360 Media purchase Arena Media National CineMedia makes strategic investment in
Ad-Dispatch acquires Volt Media Danoo (now RMG Networks)
AdWalker goes bankrupt NCR acquires NetKey
Aug 2008. Good
Artexe SRL acquires Emmerrelogic SRL, becomes NetKey acquires Webpavement time to get
DOOH.IT Pixman Nomadic Media goes bankrupt bought.
Avanti Screenmedia goes bankrupt PlayNetwork acquires Channel M
Bally Technologies acquires Coolsign's gaming Primesight acquires Titan Outdoor's UK roadside
division business
ClearOne acquires NetStreams (and just received its Redbus Group acquire assets of Streetbroadcast
NASDAQ delisting notification) RMG Networks acquires Pharmacy TV
Core Technology merges with Studio 911 Screenred disappears (and presumably goes
Danoo acquires IdeaCast bankrupt)
Digiadvans acquires Mobile Eco Ads SMART acquires NextWindow
Digital Poster AS goes bankrupt Sony acquires Convergent
EDR Media acquires The Golf Network, becomes TargetCast buys Ripple Networks
Sports Retail Networks LLC Touchtunes acquires Barfly
Fujitsu acquire global rights to TELentice (after Verifone acquires Clear Channel Taxi Media
bankruptcy)
Vision Media Group goes bankrupt
JCDecaux acquires assets of Titan Outdoor UK
Visser Digital Media acquires CampusLink and
Kaleidovision acquires Music Concierge LevelVision College
Litelogic goes bankrupt WSJ/KPCB make strategic investment in TargetCast
Medscreen goes bankrupt Zoom Media & Marketing acquires Sports Display,
Mermaid acquires Media Solutions AB ClubCom, GymTV, Allied Media's nightlife network
Millennial Media acquire TapMetrics and Wellness Health Education Network
Minicom Digital Signage spins out from Minicom
Mood Media acquires Music Matic
http://www.wirespring.com/dynamic_digital_signage_and_interactive_kiosks_journal/ar
ticles/M_A_List__Digital_Signage_Mergers__Acquisitions_and_Bankruptcies-769.html

33. What we can learn
from others

34. what we can learn from apple
There can surely be no larger or fragmented market than the
mobile industry. The carriers with all their self-interests at
stake kept the walls of their gardens high. It took Apple,
ironically with a closed operating system, to show the market a
way out of its deadlock on one of those fronts. What DOOH needs
right now
In many ways, the App Store might be more valuable and
disruptive than the iPhone. The App Store transformed an
industry within 18 months – enabling over 100,000 apps to be
developed by November 2009 and over 3 billion downloads
worldwide by January 2010 (Source: Apple, Inc).

35. background
Neo Advertising convinced the three largest retailers to
Industry contacts
“take the leap” into Digital Signage. essential.
“As you know, these people are extremely difficult to
deal with and convincing them was not an easy task.
Now the market really sees the Neo Project as one of
Investment of
the key ways to institutionalise this media.” capital in delivery.
Smr_01_08.pdf

36. Neo’s service offer
Developed an advertising network using plasma and
LCD screens, operating mostly in the retail,
supermarkets and hypermarkets.
Neo operates the largest network in the nation, in the
top 40 shopping malls. They also operate in pharmacies
and travel agencies.
Smr_01_08.pdf

37. Content extension
After two years of operations, the fact that only
“broadcast” content was available became frustrating
when planning campaigns.
“We were not getting some business because some
clients had no content for this medium, so we decided to
create a service department to help clients make the
shift from traditional to digital signage.”
Started by creating light flash animations with 8 full
Production fees
are low
time staff working on content development.
Smr_01_08.pdf

38. digital signage solution providers

39. These people
are likely to buy
Top 10 globally you Most have offices in
US / Europe only
Foot Print Asia URL
1. Cisco Au, Ch, HK, India, Indo, JP, KR, http://www.cisco.com
MY, PH, SG, TW, TH
2. EnQii China, Hong Kong http://www.enqii.com
3. Broadsign None http://www.broadsign.com
4. C-nario None http://www.c-nario.com
5. YCD None http://www.ycdmultimedia.com
6. ScreenRed None http://www.screenred.com
7. Scala India, Japan http://www.scala.com/
8. Remotemedia None http://www.signagelive.com
9. TELentice No data No data
10.Stratacache None http://www.stratacache.com/
Published 2008
http://www.dailydooh.com/archives/727, Adrian J Cotterill, Editor-in-Chief

40. Why cisco and enQii
“Both are global operations. Cisco is so obviously global,
with operations in almost every country you care to
think of.”
“They also both offer a device / appliance rather than a
PC based solution. Whilst not the be all and end all of
reasons (we do have several PC based-signage solutions
in our top 10) we do think that devices / appliances are
a much better way forward for delivering signage
solutions.”
http://www.dailydooh.com/archives/727, Adrian J Cotterill, Editor-in-Chief

41. Why cisco and enQii
“We predict more and more of the larger installations in
2008 will be device based – there is also a growing
trend, especially amongst retailers, to choose device
based solutions (ease of management, small footprint,
‘greener’, etc.).”
“Another trend that we like is the Software as a Service
(SaaS) ASP model much trumpeted by Broadsign (and
others of course) who came in third in our top 10.”
http://www.dailydooh.com/archives/727, Adrian J Cotterill, Editor-in-Chief

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contained in this document are presented in absolute confidence and are the
property of Firestarter Pte Ltd and must not be reproduced, adapted,
communicated to third parties or in any way used without the express
permission of Firestarter Pte Ltd.
© Copyright Firestarter Pte Ltd 2011.
www.firestarter.com.sg