Firestarter dooh research
- 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
- 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
- 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
- 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
- 42. The concepts, ideas, strategies, information, materials, artwork, plans and copy 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