Out of Home Advertising Up 6.0% in First Quarter 2019

Direct-to-Consumer, Tech Brands Driving Growth.

Out of home (OOH) advertising revenue rose 6.0 percent in the first quarter of 2019 compared to the previous year, accounting for $1.78 billion, based on figures released by the Out of Home Advertising Association of America (OAAA). The revenue increase marks nine years of consecutive growth for the OOH industry.

“OOH continues to grow ad spend revenue because of its effective mass reach,” said OAAA President & CEO Nancy Fletcher. “We’ve seen a marked rise with direct-to-consumer businesses, in particular, along with continued use by major tech brands, which use OOH to drive digital engagement.”

Four of the top 10 product categories posted increases equal to or greater than the overall quarterly increase including Insurance & Real Estate +18.2 percent, Media & Advertising +13.4 percent, Miscellaneous Local Services & Amusements +7.8 percent; and Financial +6.0.

Ranked in order of OOH spending, the top 10 advertisers in the first quarter were McDonald’s, Apple, Geico, Amazon, T-Mobile, HBO, Warner Bros Pictures, Google, Chevrolet, and American Express.

Twenty-nine of the top 100 OOH advertisers more than doubled OOH spend from the first quarter of 2018 including Door Dash Food Delivery, Cisco, LVMH, Groupon, Pluto TV, EA (Electronic Arts), LogMeIn.Com, Vimeo, Tazo, Stitch Fix Clothing Store, Michigan Hotels and Resorts, Uber, New York City Department Of Health & Mental Hygiene, Allstate, Salesforce, Deloitte, Target, Redfin Real Estate, Amazon, T-Mobile, TD, CNN, CBS, Paramount Pictures, Anheuser-Busch, Warner Bros Pictures, Spotify, Hulu, and 20th Century Fox Pictures.

“OOH audiences are younger and more affluent than the average US consumer, and that’s very attractive to many brands,” said Stephen Freitas, OAAA chief marketing officer. “And, a new Nielsen study found 66 percent of smartphone users have been prompted by an OOH ad to take some type of action with their phone.”

OAAA issues full industry pro forma revenue estimates that include, but are not limited to, Miller Kaplan and Kantar Media (which is not adjusted to reflect changes in data sources), and member company affidavits. Revenue estimates include digital and static billboard, street furniture, transit, place-based, and cinema advertising.

For more information about specific category spend, please contact Nicole Randall at nrandall@oaaa.org or (202) 833-5566.

The Out of Home Advertising Association of America (OAAA) is the national trade association for the $8 billion US out of home advertising (OOH) industry, which includes digital out of home (DOOH), and is comprised of billboards, street furniture, transit advertising, and place-based media (including cinema).

Comprised of 800+ member media companies, advertisers, agencies, ad-tech providers, and suppliers that represent over 90 percent of the industry. OAAA is a unified voice, an authoritative thought leader, and a passionate advocate that protects, unites, and advances OOH advertising in the United States.

OAAA-member media companies donate over $500 million in public service advertising annually. Every year, the industry celebrates and rewards OOH creativity via its renowned OBIE Awards (obieawards.org). For more information, please visit oaaa.org.

DPAA’s Video Everywhere Summit 2017 in photos

What happens at Video Everywhere goes everywhere…

Another successful event by the DPAA connected and reconnected hundreds of digital out-of-home advertising professionals on November 1, 2017 at the Roosevelt Hotel in New York.

Photo Credits: Doug Goodman.

Barry Frey, President & CEO, DPAA and Mike Linton, CMO, Farmers Insurance.

 

Barry Frey and Mark Ingall, Managing Director, Global Marketing, Citibank

 

Barry Frey; Andrew Swinand, CEO, Leo Burnett N.A.; Rob Norman, Chief Digital Officer, GroupM Worldwide and Chairman, GroupM N.A.

 

Barry Frey; Paul Woolmington, CEO, Canvas Worldwide; Bobby Jones, Co-Author, “Good is the New Cool: Market Like You Give a Damn;” Mark Ingall, Managing Director, Global Marketing, Citibank.

 

Patrizio Spagnoletto, Head of Media & Subscriber Growth, Hulu; Cat Greenleaf, Host, “Talk Stoop” and canine pal Norma Rae; Thomas Teepell, CMO, Lamar Advertising.

 

Robert Riesenberg, Founder & CEO, RER Entertainment; Arlene Manos, President, National Advertising Sales, AMC Networks; Gary Reisman, Founder & CEO, Leap Media Investments.

How digital signage helps restaurants improve their margins

By Richard Murton, Display Technlology.

Richard Murton, managing Director of Display Technology

Like many industries, the food industry is facing challenging conditions. Supply-side issues are pushing up the prices of some ingredients and for some, labour costs are also increasing.

The problem is that at this time for many restaurants, especially fast-food restaurants, competition doesn’t allow them to increase prices much to reflect these higher costs. This means that these businesses have to look to technology, in particular digital signage, to improve their margins. Here are three ways in which it can do so.

Keeping costs down.

The idea of changing prices according to the factors which influence demand is not new. It does, however, have more significance for the food industry since there are not just seasonal variations in what people eat, but the time of week and even time of day can both heavily influence how long people take to eat and hence what foods they want. For example, the same restaurant might only serve quick breakfasts and buffet lunches on weekdays, but offer a brunch option on weekends.

Up until the arrival of digital menus, managing these different pricing structures was expensive and time-consuming. It involved either printing and distributing the right menus at the right time or having all the different prices on display at the same time, leaving customers (and indeed staff) to pick their way through them, thus opening up lot of potential for confusion (read staff mistakes and/or unhappy customers) and/or making it obvious that different prices were being charged for the same item of food.

Digital signage makes it almost effortless to display the right price at the right time, regardless of how often you’re changing it.

Reflect’s DOOH tech platform powers 350 thousand digital displays in retail, entertainment and hospitality venues

Reflect, a Dallas-based, full-service provider of digital signage technology, joined DPAA earlier this year. Mel Stott recently chatted with Matt Schmitt, Reflect’s President & Co-founder.

Please tell us about your company’s business, including your AdLogic platform and ReflectMedia service.

Reflect has been helping brands power digital media networks since 2001. We have an enterprise-class content system called ReflectView, which supports digital signage and interactive applications across a variety of screen and device types.

Our AdLogic platform was developed in response to an industry need for a highly automated approach to ad trafficking, delivery and reporting. One important point about AdLogic is that it can work in conjunction with programmatic ad sales, but at its core it serves a vital function for direct media sales – i.e. a media network selling directly to agencies and brands.

ReflectTV screen

DPAA member profile: Arch Global, a financial planning firm

Arch Global, a financial planning firm for individuals, families and businesses, recently joined DPAA. Mel Stott spoke with Sheraz Iftikhar, Managing Partner, Arch Global, about his company.

Please tell us a bit about Arch Global’s business.

Arch Global Advisors provides comprehensive financial planning for individuals, families and businesses. Collectively, our team has more than 50 years of wealth management experience. Using the Voya Financial Advisors independent platform, we bring to bear high-value investment products and services from some of the top financial firms in the country.

DPAA Leads Advertising Week Sessions on Programmatic DOOH and Location Data

NEW YORK, September 25, 2017 – DPAA, the global organization for everything digital out-of-home, will lead a pair of Advertising Week sessions focusing on two timely elements of the sector’s rapid growth: location data and programmatic.

The panelists will examine the state of both technologies, present real world examples and make projections on how they will impact brands in the coming years. It is anticipated that some panelists will be announcing new digital agreements and application launches.  

DOOH tech provider Arrow powers major networks behind the scenes

Arrow Intelligent Systems (AIS), a leading OEM services provider with particular expertise in Visual Media, recently joined the DPAA’. Mel Stott talked about the company with Scott Falso, Director of Market Development.

What is Arrow Intelligent Systems and what do you do in the digital out-of-home arena.

Arrow Intelligent Systems (AIS) is a leading OEM services provider with particular expertise in visual media.  Our acquisition of Seneca Data in 2014 brings market specific engineering and product development experience to the team. Arrow’s primary play in digital out-of-home is helping networks with purpose built playback, display and interactive kiosk technology backed by a suite of services to lower costs and increase customer experience.

The media player itself is often taken for granted when people talk about digital out-of-home, but of course they are of extremely high importance. What sets your media players apart?

Arrow has a broad offering of media players ranging from tier 1 solutions from HP, Dell and Lenovo as well as niche brands like Seneca. Seneca media players are purpose built for digital signage networks and have been optimized for 24/7 operation.

Arrow has partnered with leading content management companies such as Broadsign (DPAA member), to offer players that have been optimized and certified for their application software. Arrow’s extensive testing and validation takes place in their Advanced Engineering Services center that includes a thermal chamber, 4k video wall arrays and a variety of bench-marking software. Validation done in the factory ensures project success in the field.

In addition to media players, Arrow offers commercial displays both framed and unframed to be used in kiosk, video wall and outdoor environments.

Arrow Systems in action. Photo courtesy of franckreporter

 

Do you sell your screens directly to the venues, or to network content providers… or both?

Location intelligence firm Ubimo integrates DOOH campaigns with mobile

A DPAA-sponsored feature.

Ubimo, a location intelligence technology company, recently joined the DPAA’s membership ranks. Mel Stott interviewed Kelly Lawler, Ubimo’s VP of Sales.

Please tell us a bit about Ubimo’s business.

Ubimo’s technology empowers companies to gather, analyze and activate geospatial information in order to make their digital marketing perform better by turning raw location data into actionable insights. The tech is in the form of a self-service platform, giving our clients both transparency and control.

Our Location Intelligence Platform combines proprietary geo based technology with advanced artificial intelligence. This allows customers to analyse 1st and 3rd party data about real world behaviors in order to make better advertising decisions.

For the OOH industry, our platform offers media owners a more granular understanding of the people exposed to their properties by amassing demographic, behavioral and geographical signals.

Our audience extension tools match OOH billboard locations to exposed mobile devices. As a result, we have the ability to monitor exposure rates and behavioral trends.

This allows for a more effective campaign work flow for and re-targeting strategies that get results.

Another advantage of the platform is its ability to perform in-store visitation attribution in real-time, which allows advertisers to optimize campaign variables more precisely.

How does the AI component of your platform work?

India’s largest DOOH ad network in railway stations plans to expand into bus and Metro transit

A DPAA- sponsored feature. Vyoma Media, India’s leading out-of-home digital media solution company, recently joined the DPAA as the group’s latest international member and first from that country. Mel Stott recently chatted with Shoumitro Goswami, Vyoma’s COO.   

In what types of venues are your screens located?

We are currently located at railway stations across India and have been fortunate to have an on-going relationship with the Indian Railways for a number of years now. Specifically, our screens are located at the ticket counters where on average 23 million tickets are bought every day. This allows us to engage with a captive audience who are typically waiting in-line for 10-15 minutes.

We’re also exploring opportunities within the ever expanding Metro system, local bus and highways network in the country.

What type of content do you play?

Our goal is to inform travelers better, which in the past only happened verbally when the traveler came face to face with the ticket counter executive.

In order to get travelers to view our screens, the bottom ¼ of every screen shows their ticket information (details of a traveler’s purchase and journey). So now when they are purchasing their ticket they have already got a preview of their details on the screen before completing their payments.

On the top ¾ of the screen we show advertising, railway content and also content that we’ve created in-house. Advertisements are normally a 10-30 second video, animation or stills that are provided by our clients. Railway content includes trip-related information and public service announcements.

We also put up engaging content that might include cricket or sport scores, information about the location the traveler is at, historical highlights and relevant national news highlights.

How many consumers see your screens each month?

Live local sports video company ScoreStream finds value in collaborating with DOOH networks

A DPAA-sponsored feature. ScoreStream, the first and only crowd-sourcing platform for live local sports, joined the DPAA this past spring. Mel Stott recently chatted with John Smelzer, President & COO of ScoreStream, about the company.

You bill yourself as the first and only crowd-sourcing platform for live local sports. Please tell us a bit about how your crowd-sourcing platform works.

The ScoreStream mobile app allows fans in the stands to input scores, upload photos and videos, chat, cheer and post to social media. We then use machine learning and several other proprietary techniques to structure, validate and publish this user generated content in real time.

In addition to having a sizable mobile audience, you syndicate real-time content to 500 local media partners nationwide. Who are some of these partners, and please tell us more about the syndication aspect of your business.

We’re now up to 750 local media partners, including TV stations, radio stations, newspapers and cable sports nets representing Sinclair, Tribune, Nexstar, Gannett, Hearst, FSN, CSN, iHeart Radio, ESPN Radio and many others. These partners publish geo-located ScoreStream web widgets covering all their local teams.

We also power on-air tickers for approximately 100 TV stations nationwide and even provide real time “geo-filters” to Snapchat. We’re about to announce one of our most strategic partnerships to date, which will essentially make ScoreStream “the wire” for live, local sports.

How do you see digital out-of-home fitting into your business model?

Once folks realize they can see up-to-the-second coverage of their local high schools, they are thrilled and delighted by that content whenever and wherever they happen to be. Digital out-of-home represents to us countless incremental points of distribution for our highly unique, highly desirable content.

How do you integrate advertising and/or sponsorships into your content? Do you sell national brands or local advertisers… or both?

We’ve just begun to explore sponsorship of our mobile app and are open to any and all business models for monetizing our DOOH content. One likely model would be for our partners to sell locally – something we could never do – as we sell nationally, all subject to mutually agreed-upon rev shares.

High school football must be a big time of year for you. What can users expect to see from ScoreStream during the 2017-18 season?