Saturday, June 3, 2023

September, 2016 DOOH Media Revenues, OOH Sector EBITDA, Valuation Metrics, CPM Comparison and Other Key OOH Market Indicators from PJSC

Guest post by Mark Boidman,
Managing Director, Media & Tech Investment Banking, Peter J. Solomon Company

Monday, October 3, 2016

These are OOH-related excerpts from the September, 2016 PJSC Media Monthly report.

Look Up: In the Digital Age, Billboards Are Far From Dead

  • Spending on out of home advertising, which includes stand-alone billboards, ads on various modes of transit and airport ads, has risen for 24 consecutive quarters with spending increasing to $7.3 billion in 2015 from $5.9 billion in 2009:
    – In 2015, spending on out of home ads in the United States rose 4.6% from 2014, while spending on TV ads fell 3.6%, radio ads declined 2.5%, newspaper ads slipped 12.8% and magazine ads dropped 12.7%;
  • Billboards have moved beyond the old model to attract pedestrians and now many are digitized, electronic and interactive, which allows them to deliver codes to customers and take them to specific destinations online:
    – Advertisers want to be able to measure who is seeing their ads, which have pushed companies to start adding small cameras to billboards to collect data on people passing by
    – Ad tech firms like Videri are leveraging OUTFRONT ON Smart Media for its targeted advertising to transit passengers; this new platform combines cloud distribution with addressable displays and OUTFRONT’S programmatic distribution network;
  • Clear Channel Outdoor’s Radar program teams up with several companies, including AT&T, to track the travel patterns of people passing by its billboards:
    – Radar uses mobile device data and other information to determine if people later visit a store or search their smartphones for the product.
    Source: NY Times.


PQ Media: US Digital Out of Home (DOOH) Media Revenues:

  • DOOH, consisting of digital-place-based networks (DPNs) and digital billboards and signage (DBBs) media revenues grew 11% to $2.7 billion in 2015, the fastest growth rate in five years;
  • Consumer exposure to DOOH increased 4% to 54 minutes per week;
  • US DOOH advertising revenues are projected to rise another 8.7% in 2016, while consumer DOOH
    exposure is expected to grow at an accelerated 5.3%, the fastest growth rate since 2011;
  • DPN segment bounced back in 2015, as revenues surged 13.8% to $1.8 billion, the first double-digit
    increase since 2010:
    – Revenue increase due to the absence of major political and sporting events siphoning ad dollars, the stabilization of management teams at leading DPNs and gradual integration of mobile technology;
  • Point-of-care DPNs powered the rapid expansion of the corporate and healthcare segment, which boasted the highest growth of all DPN verticals in 2015:
    – Growth resulted as doctors leveraged digital and video tools to educate patients about the Affordable Care Act and offered advertisers hyper-targeting via mobile channels;
  • DBB revenue growth also accelerated in 2015, rising 5.6% to $894 million, following the slowest growth on record in 2014:
    – Key drivers include more consumer viewing of content related to the Brazil Summer Olympics and coverage of the fierce US presidential campaign across DPNs and DBBs via new content
    partnerships, such as CNN Airport’s ratings spike during the political conventions;
  • Cinema exposure also grew in 2015, driven by a strong roster of blockbuster films, including Star Wars: The Force Awakens;
  • Macro trends like consumers spending more time outside their homes and the gradual improvement of the US economy should help brands open their media mix models to include more DOOH during the next five years.

Consumer Media Usage and Exposure Growth by Media Platform:

Source: PQ Media.


PJSC US Major Media CPM Comparison:

Source: Peter J. Solomon Company estimates as of July 2016 based on SEC filings, news, research and other industry sources.


Share Price Performance:picture1

Source: Capital IQ, Bloomberg and Wall Street research.


Source: Capital IQ as of September 26, 2016 and Wall Street research.


Valuation Metrics:

Source: Capital IQ as of September 26, 2016 and Wall Street research.

Featuring the research and insights of PJSC’s Technology, Media & Telecommunications team, the Media Monthly summarizes the latest financial headlines and highlights in media and technology.



Published on Monday, October 3, 2016 at 12:28 AM

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