Wednesday, May 29, 2024

PJSC’s OOH media market update, May 2016

Guest post by Mark Boidman

Wednesday, May 18, 2016

Below are excerpts from the the Media Monthly bulletin containing major OOH media market indicators. Media Monthly features research and insights of PJSC’s Technology, Media & Telecommunications team.


2016 OOH Main Markets Advertising Spend: 
Main Markets Advertising Spend


2016 OOH Share of Total Advertising in Main Markets:
Share of Total Advertising

In the Asia-Pacific countries, OOH spend is increasing due to growing urbanization.

  • Japan will see gains in OOH advertising as the country prepares for the 2020 Summer Olympic, benefitting from new facilities, installations and airport advertising.
  • South Korea OOH advertising will increase slightly as new inventory becomes available through digital screens with the development of new baseball stadiums, theaters and shopping malls.

In Brazil, the Rio Summer Olympics will be the key driver in OOH advertising’s 15% growth in 2016.

In the UK, advertisers will be better able to target UK consumers through interactive OOH advertising, using location and mobile device data to deliver relevant content in real-time.

In the US, there is a major shift towards digital.

  • DOOH networks can be used to capture attention and influence consumer behavior along the path to purchase.
  • Data shows that DOOH video ads in shopping malls and retail stores are the most persuasive.

 

Share Price Performance by Sector: 
SharePricePerformancePNG

 

2016 Out of Home EBITDA:

2016 OOH EBITDA

Median: 12.5x

 

Valuation Metrics by Sector:
ValuationMetrics

 

PJSC Major Media CPM Comparison:
CPMComparison

 

OOH Media Sector News Roundup:

5/5: Lamar announced Q1 2016 net revenues increased 12% YoY to $339 million and adjusted EBITDA increased 10% YoY to $130 million.

5/5: OUTFRONT announced Q1 2016 revenues grew 3% organically, reflecting the third consecutive quarter of improved US billboard performance.

5/4: Clear Channel Outdoor announced Q1 2016 consolidated revenues increased 2% YoY on a constant currency basis and after adjusting for the sale of its non-strategic outdoor markets.

4/28: Manchester Airports Group (MAG) appointed Primesight to handle its Out of Home advertising, which will cover MAG’s four UK airports that reach ~50 million passengers a year.

4/26: According to the Internet Advertising Bureau UK, the UK Out of Home industry grew 4% in 2015 to £1.1 billion and is projected to grow 5% in 2016.

4/21: According to proximity data aggregator, Unacast, the number of global beacons deployed in retail increased 17% to 6.2 million in Q1 2016, and is estimated to reach 8 million by the end of 2016.

4/7: Posterscope and Lamar unveiled a new outdoor campaign for the 2016 Chevrolet Malibu launch using vehicle recognition technology that can identify certain vehicles and generate customized messages to drivers of those vehicles on digital billboards.

3/17: The Transport for London (TfL) selected Exterion Media as its media partner for its £1.1 billion contract to handle advertising space on the London Underground.

3/14: Mobile commerce firm, Proxama, joined forces with Google to provide live travel updates and advertising on London buses.

3/9: Clear Channel Outdoor sold its non-core local assets in Columbus, OH to Lamar Advertising, including analog and digital billboards, for an undisclosed amount.

Source: Company press releases and Wall Street Research.

 

The Right Digital Signage Can Transform the Retail Experience

  • Brick-and-mortar retailers are continually searching for ways to improve the customer experience, similar to what consumers may find in e-commerce;
  • Retailers are sampling the latest generation of digital signage to lure consumers back to stores;
  • The interactive aspect of modern digital signage caters to the personal tastes and profiles of shoppers:
    – Engagement with customers encourages them to upload additional information about themselves and their buying preferences;
  • Some signage contains embedded intelligence for better understanding consumer behavior:
    – Tiny video cameras in the display records customer engagement and keeps track of data regarding time spent browsing certain items, gender and a general view of a customer’s age
    – This information can help stores more precisely target messaging to demographic groups;
  • Customers can explore all possible options of specific clothing and colors on the digital signage screen:
    – Retailers would not have to invest in excessive inventories in each location in order to have every size and color in stock.

 

View the full report here.

Peter J. Solomon Company (PJSC) is a leading independent investment banking firm headquartered in New York City. Founded in 1989, the Firm has successfully completed more than 500 strategic and financial advisory assignments on behalf of industry leaders across media, tech and retail in the form of mergers and acquisitions, divestitures, financings, recapitalizations and restructurings, fairness opinions and activism defense.

 

Published on Wednesday, May 18, 2016 at 2:37 AM

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