2015: The Year in OOH (Quarterly insight deck) Out of Home in 2015... o Providing greater effectiveness for the medium. o Exhibiting even more creativity and dynamism. o Continuing to grow revenues and market share. Document Title Date 2 Out of Home is providing greater levels of effectiveness. Optimising real-time campaigns. 2015 has seen a range of advertisers harness Digital OOH in order to deliver ‘real-time’ campaigns. Digital OOH developments have reached such a point where it is now genuinely viable to achieve this, and clients can now be more reactive in how they deliver messages. For example, Nest, the thermostat that can be programmed using a smartphone, used Clear Channel screens to deliver updated weather reports so that users knew when to alter the temperature in their homes. Document Title Date 4 The effect of contextual relevancy. Context has a huge impact on the success of a campaign. Digital OOH is increasingly being used to deliver messages which reflect their audience and environment. Google’s recent campaign, which delivered contextually relevant messages throughout London’s Digital OOH network, saw 30% increase amongst those exposed, across action, sales, awareness and perception metrics. Document Title Date 5 The effect of contextual relevancy. Amplifying fame & reach and connecting on key metrics, real-time data, social media and locational factors +30% across action, sales, +44% driving consideration, awareness and perception metrics behavioural change (action metrics) Source: Talon Outdoor analysis of campaigns across various metrics +20% for perception and relevance shifts Document Title Date 6 Econometrics. Over recent years clients have been dedicating more time and cost into measuring the effectiveness of their media spends, using econometric modelling. OOH has always had a varied performance within econometrics, but now thanks to ground-breaking work from OOH Specialist Talon, in conjunction with marketing analytics experts Brand Science, the elements which will reflect OOH more accurately have been uncovered. Talon & Brand Science have uncovered the following findings: Increasing investment in OOH as part of the comms mix drives ROI for advertisers Media channels consistently improve ROI across individual categories when OOH is included in the mix Dropping OOH from a campaign can lead to reduced campaign effectiveness The optimal proportion of Digital OOH (of the whole OOH budget) is around 45% and 20-25% of frames. Document Title Source: Talon Outdoor/Brand Science Date 7 Inspiring & Involving: Creativity & Dynamism in Out of Home. 10 creatives we liked in 2015… Coca-Cola. Document Title Date 10 Coca-Cola. Document Title Date 11 Google. Document Title Date 12 The Martian – 20th Century Fox. Document Title Date 13 YouTube. Document Title Date 14 Lucozade. Document Title Date 15 Facebook. Document Title Date 16 Spectre. Document Title Date 17 XBOX – Tomb Raider. Document Title Date 18 Creativity in Digital Out of Home: Ocean Outdoor competition. Document Title Date 19 NHS: ‘The Virtual Blood Donation’ – winner in Interaction. Designed to address the drop in the number of blood donors, this virtual donation campaign shows the transformational effect of giving blood. Passers-by are asked to use their mobile to connect to a micro-site and ‘upload’ a virtual donation which automatically fills a bag on the large digital screen. As more blood flows a patient featured on the screen (who requires the donation) grows healthier, physically demonstrating the difference giving blood makes. The judges said: ‘ The use of an augmented reality app via the phone for donation is superb. The creative mechanism of filling up the bag on the big outdoor screen is simple and powerful’. Document Title Date 20 Odeon: ‘Smarter Cinema’ – winner in Creative Techniques The cinema chain combined micro-level audience data and digital out-of-home technology to serve hyper-local adverts about ticket availability directly to digital screens within the vicinity of an Odeon cinema. Content is updated to deliver the most effective information in real time, serving geo-targeted mobile adverts to amplify the messages. The judges said: ‘Brutally normal but brilliant all the same. It makes a lot of sense, using smart real-time based solutions to resolve a local business problem. The novelty factor is that it hasn’t been done before’. Document Title Date 21 Out of Home Revenue & Share. OOH revenue continues to grow. 824.4 796.1 784.3 2013 2014 2015 (incl. H2 forecast) Total revenue £m (constant prices) Document Title Source: WARC – 2012 vs 2015 annual OOH spend (constant prices) Date 23 Out of Home has grown revenue by 8% in the last 12 months. 12.0% 8.3% 7.7% 3.5% Online TV OOH Cinema 1.8% 1.5% Radio DM Q3 2015 vs Q3 2014 % revenue change Source: WARC – Q3 2014 vs Q3 2015 Newspapers Magazines -8.4% -8.6% Document Title Date 25 Long-term performance is encouraging. % growth YOY 15% 15% 13% 11% 11% 5% 7% 3% Online 5% 2% TV 3% 4% 5% 5% 3% 3% 1% OOH Radio DM -1% -1% Newspapers Magazines -3% -7% -9% 2013 2014 2015 -6% -7% -10% -8% -9% -9% 2016 (forecast) Document Title Source: WARC – 2012 – 2016 (incl. 2016 forecast) (online includes mobile) Date 26 Market share – display. 1% 9% Display market share change: 4% TV: 43% share (static) Online: 25% share (+4% from 2014) 43% 25% Newspapers: 12% share (-2% from 2014) OOH: 9% share (static) Magazines: 6% share (-1% from 2014) 12% 6% Radio: 4% (-1% from 2014) Cinema: 1% share (static) TV Magazines Newspapers Online OOH Cinema Radio Document Title Source: WARC – based on current prices Date 28 2015’s biggest spenders in OOH. £35.2m £14.0m £13.7m £13.1m £12.3m £11.4m £10.6m £10.5m Document Title Source: Nielsen – Nov 14 – Oct 15 adspend Date 29 2015’s biggest spending categories on OOH. Entertainment & Leisure Telecoms Alcohol Finance £152m £101m £71m £68m Food Motors Travel & Transport Cosmetics & Personal Care £62m £51m £50m £37m Document Title Source: Nielsen – Nov 14 – Oct 15 OOH adspend by category Date 30