2016 china media overview - ooh part - cn&en · in the first half of 2017, china’s ooh ads...

OOH

© 2017 Beyond Summits

2


Summary： • In recent years, OOH has grown rapidly in China. It has become the third largest advertising

media following TV and online media in China.

• The development of digital OOH provides advertisers with convenient and creative

opportunities. Connected with digital media, it also brings some truly innovative marketing

concepts. More data access makes the media more attractive to advertisers than ever before.

• In the first half of 2017, among all the forms of OOH ads, the growth of video media’s rate card

was the highest. Website industry spent most in OOH ads among all industries, while the

growth rate of software and beverage industry’s expenditure on OOH ads was the highest and

the lowest respectively.

3


Advantages of OOH

Longer time of exposure, 24-hour display of the ad information

High flexibility and low restriction in size, shape and color

High flexibility in location and could penetrate in many destinations

Lower costs, higher benefits, and cost-effective

Reach viewers with no limits, wide distribution

Reflecting public welfare and human care

4

Source: CODC


In the first half of 2017, China’s OOH ads expenditure amounted to CNY631.65 million, up 11%

compared with the same period of the previous year.

52,382

56,754

63,165

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

2015 H1 2016 H1 2017 H1

OOH Ad Expenditure in China

（million yuan）

11%

5

Source: CTR Market Research


In 2017, traditional OOH’s advertising revenue kept decreasing, but the drop was lower than that

of 2016. Moreover, OOH’s ad area went down by 13.5% than 2016.

-3.1%

-1.0%

-4%

-3%

-2%

-1%

0%

2016 2017

Growth Rate of Traditional OOH’s Advertising Revenue in 2017

-9.8%

-15.3%

-20%

-16%

-12%

-8%

-4%

0%

2016 2017

Growth Rate of OOH’s Ad Area in 2017

6

Source: CODC


In the first half of 2017, among all forms of OOH ads, the growth rate of video media’s advertising

revenue was the highest, reaching 15%, followed by online media, reaching 11%.

15.0%

11.0%

10.0%

7.0% 7.0%

6.0%

4.0%

2.0%

0%

2%

4%

6%

8%

10%

12%

14%

16%

Video Media Online Media Railway Station Airport Waiting Room Metro Bus Body Single Media

Growth Rate of Various OOH’s Advertising Revenue（2017H1 VS 2016H1）

7

Source: CODC


In the first half of 2017, most Top 15 OOH advertisers increased their OOH ad expenditure except

real estate, beverage, alcohol and cosmetics industry.

74%

7% 0%

74%

-8% -1%

-26%

13%

-4% -12%

23%

-22% -16%

-9%

10%

-12%

2% 10% 12%

35%

-16% -5%

21%

46%

26%

0%

84%

3% -1%

32%

98%

7%

-40%

-20%

0%

20%

40%

60%

80%

100%

120% 2016-2017 H1 Growth Rate of TOP 15 OOH Advertisers’ Ad Expenditure

2016H1 (year-on-year growth) 2017H1 (year-on-year growth)

8

Source: CODC


3%

10%

11%

5%

8%

12%

0%

2%

4%

6%

8%

10%

12%

14%

First-tier Market Second-tier Market Third-tier Market

OOH Ad Expenditure in Various Markets

2016H1 (year-on-year growth) 2017H1 (year-on-year growth)

In all levels of markets, OOH ads in the third-tier market saw the largest increase, with a year-on-

year growth of 12% in the first half of 2017, while the growth rate of the second-tier market slowed

down.

9

Source: CODC


Ranking of City Monthly Expenditure on Traditional OOH Ads in Nov 2017

Ranking City Growth of OOH Ad Expenditure Growth of Ads Resource

1 Shanghai -10.4% -29.6%

2 Wuhan 184.3% -17.8%

3 Beijing -3.7% -3.4%

4 Guangzhou -5.1% -7.5%

5 Shenzhen -14.7% -16.4%

6 Jinan -64.6% -67.4%

7 Nanjing -5.9% -5.8%

8 Shenyang 1.9% 2.7%

9 Chengdu -9.8% -9.3%

10 Hangzhou 14.8% 10.7%

11 Changchun -0.2% 6.7%

12 Zhengzhou 19.2% 12.4%

13 Dalian 5.6% 5.5%

14 Fuzhou 35.9% 6.7%

15 Qingdao -7.7% -17.3%

16 Harbin 5.0% 5.0%

17 Kunming -36.1% -41.7%

18 Suzhou -3.1% 0.1%

19 Tianjin -7.3% -12.0%

20 Xi’an -8.1% -15.4%

21 Changsha -17.3% -13.6%

22 Shijiazhuang 13.1% 6.1%

23 Ningbo 4.4% 3.8%

24 Chongqing 14.9% 10.6%

10



In 2017, in the Top 5 industries that have the most expenditure on traditional OOH ads, the post

and telecommunication industry and real estate/construction engineering industry showed a

declining trend compared with the same period of the previous year; while the rest three industries

increased their expenditure.

-3.7%

4.3%

-19.1%

6.0%

0.7%

-25%

-20%

-15%

-10%

-5%

0%

5%

10%

Telecommunication Business & Service Real estate/Construction Entertainment & Leisure Transportation

Top 5 Industries That Have the Most Expenditure on Traditional OOH Ads (2017 VS 2016)

11



Category Growth Rate

in 2017

Website -2.2%

Communication Products 8.4%

Whole Network Service 89.1%

Data Multi-media Service -37.4%

Mobile Internet Service -72.6%

Category Growth Rate

in 2017

Retail Service 5.8%

Medical/Health care Institutions -14.7%

Education/Training 36.3%

Photo Studio/Wedding Photo/Printing

Service 297.0%

Cosmetology/Hairdressing/Body fitting 11.5%

Post and Telecommunications Business and Service Industry

Growth Rate of TOP 5 Categories of Main Industries’ Spending on

Traditional OOH Ads in 2017

12



Category Growth in

2017

Entertainment and Leisure Service 25.2%

Tourism/Regional Image -16.7%

Sporting Goods and Service -9.8%

Entertainment and Leisure—Corporate

Image 175.8%

Toy/Video Game 108.5%

Category Growth in

2017

Transportation-others 16.3%

Vehicle -17.8%

Transportation-Corporate Image 6.3%

Transportation Service -41.9%

Motor Related Service -28.3%

Entertainment and Leisure Transportation

Growth Rate of TOP 5 Categories of Main Industries’ Spending on

Traditional OOH Ads in 2017

13

Source: CODC


Number of Brands in Each Industry for OOH Ads and Each Brand’s Ad Expenditure

Ranking Category Number of Brands

2015H1 2016H1 2017H1 2016 VS 2015 2017 VS 2016

1 Website 436 491 440 13% -10%

2 Entertainment & Leisure 3025 2984 3094 -1% 4%

3 Service Industry 3447 3461 3435 0% -1%

4 Software 233 288 382 24% 33%

5 Real Estate 4156 3782 3116 -9% -18%

6 Beverage 336 296 285 -12% -4%

7 Transportation 485 458 416 6% 9%

8 Communication 138 153 139 11% 9%

9 Finance 410 445 337 9% -24%

10 Alcohol 304 286 269 -6% -6%

11 Building Equipment & Service 736 678 685 -8% 1%

12 Food 558 479 441 -14% -8%

13 Cosmetics 198 165 172 -17% 4%

14 Household Goods 615 569 561 -7% -1%

15 Education Industry 560 559 676 0% 21%

Other Industries 2315 2076 1843 -10% -11%

Total 17563 16794 15977 -4% -5%

Each Brand’s Contribution (thousand)

2015H1 2016H1 2017H1 2016 VS 2015 2017 VS 2016

163 251.1 284.9 54% 13%

20.4 22.2 23.7 9% 6%

18.8 18.8 21.3 0% 13%

87.9 123.9 125.7 41% 1%

9.8 9.9 10.1 1% 2%

98.3 110.1 108.2 12% -2%

69.6 54.9 73.2 21% 33%

126 128.5 206.9 2% 61%

56 49.5 82.5 -12% 67%

71.5 66.7 71.2 -7% 7%

10.4 13.8 25.2 33% 82%

36.2 32.7 36.6 -10% 12%

94.8 95.6 90.3 1% -5%

18 17.8 23.8 -1% 34%

10.9 12 19.6 10% 64%

31.2 30.7 36.9 -2% 20%

29.8 33.8 39.5 13% 17%

14

Source: CODC


Industry Category Media Category 2016 H1 (year-

on-year growth)

2017 H1 (year-

on-year growth)

Website

Video Media 84% 19%

Metro 62% -23%

Waiting Room Ads 140% -6%

Bus Body 11% 8%

Railway Station -2% 3%

Airport 446% -13%

Single Media 33% -29%

Online Media 118% -11%

Total 74% 2%

The Industry with the Highest Expenditure on OOH Ads

In the first half of 2017, website industry spent most in OOH ads among all industries, but the

growth rate slowed down. The expenditure on metro, airport, and single media decreased.

15

Source: CODC


Industry Category Media Category 2016H1 (year-

on-year growth)

2017H1 (year-

on-year growth)

Software

Video Media 71% 22%

Metro 96% 70%

Waiting Room Ads 166% 65%

Bus Body -5% 212%

Railway Station 60% 21%

Airport -32% 122%

Single Media 100% -19%

Online Media 644% 8%

Total 74% 35%

The Industry with the Highest Growth Rate Expenditure on OOH Ads

In the first half of 2017, the growth rate of software industry’s expenditure on OOH ads was the

highest among all industries, “Pinduoduo”, “16wifi”, and “Yidianzixun” mainly advertised on bus

body, while “Alipay” returned to advertise on railway media.

16

Source: CODC


Industry Category Media Category 2016H1 (year-

on-year growth)

2017H1 (year-

on-year growth)

Beverage

Video Media -6% 3%

Metro 21% 2%

Waiting Room Ads -4% -42%

Bus Body -21% -23%

Railway Station 40% 12%

Airport 38% -37%

Single Media -9% -16%

Online Media -18% -45%

Total -1% -5%

The Industry with the Lowest Growth Rate Expenditure on OOH Ads

In the first half of 2017, “Yili”, “Red Bull” and some main brands in the industry decreased the ads

expenditure on waiting room, street network, and bus body, resulting a continuous negative growth

in the beverage industry.

17

Source: CODC


According to the data in the first half of 2017, the brands spending on OOH ads were mainly

domestic brands, accounting for two thirds of the total, followed by international brands, with the

proportion of 15%.

76%

15%

3% 2% 2%

2017H1 Type of Brands Spending On OOH Ads

Domestic Brands

International Brands

Joint Venture Brands

Government Organs

Hong Kong, Macao, TaiwanBrands

ProfessionalOrgans/Institutions

Overseas ProfessionalOrgans/Institutions

Others

18

Source: CODC


Among all types of OOH video media, the ads expenditure on building LCDS ranked the first for

three consecutive years, with a continuous year-on-year growth but a slowed down growth rate.

Moreover, in the first half of 2017, the ads expenditure on bus TV has the biggest increase, while

that of metro electronic screens dropped remarkably.

Type of OOH Video

Media

Ad Expenditure

（million yuan）

Year-on-year

Growth Real Growth

2015H1 2016H1 2017H1 2016H1 2017H1 2016H1 2017H1

Building LCD 12593 15706 18788 25% 20% 25% 20%

Street Electronic Screen 6212 5746 7236 -8% 26% -8% 7%

Metro Electronic Screen 776 1540 1025 98% -33% 98% -33%

Metro TV 2003 1967 2537 -2% 29% -2% 29%

Bus TV 2262 1296 1882 -43% 45% -43% 45%

Total 23846 26256 31468 10% 20% 9% 16%

19



In 2017, traditional OOH ads in e-commerce industry saw the fastest growth, especially OOH ads

of JD.COM, Tmall, and Suning. It was worth noting that the year-on-year growth rate of OFO

shared bike’s traditional OOH ads reached up to 1000% in 2017.

0.7%

-3.2%

14.2%

42.8%

18.1%

109.8%

38.3%

-7.7%

0.0%

-14.6%

Top 10 Brands That Spend Most on OOH Ad and Its Growth Rate (2017 VS 2016)

JD.COM

Tmall

Suning

MI

Quanjing

OPPO

VIVO

Mentholatum

OFO shared bike

China Mobile

20

Source: Nielsen


According to Nielsen's research on posters, the information of outdoor poster is more likely to

stand out than other advertisements (such as newspapers, online, mobile or radio).

Brand Traditional

OOH

Elevator

TV

Elevator

Poster

Cinema

Video

Traffic

Video TV Radio Newspaper Magazine

Tmall √ √ √ √ √ √ √ √

Chezhibao √ √ √ √

Xiwang √ √ √

Gani √ √ √ √ √ √

Mengniu √ √ √ √ √ √ √

Suning √ √ √ √ √ √ √ √

KFC √ √ √ √ √ √ √ √

Xin √ √ √ √ √

MI √ √ √ √ √

BBK √ √ √ √ √

Didi √ √ √ √ √ √ √ √

Youku&Tudou √ √

Xiaoguan Tea √ √ √ √ √

Xiaotiancai √ √

Pinduoduo √ √

Bashi Toutiao

Shenzhou √ √ √ √ √ √ √

Jinli √ √ √ √ √

Wozhuliangyuan √ √ √

Momo √ √

TOP 20 OOH Ad Expenditure Brands’ Media Distribution in Aug 2018

21

Source: CTR


In 2016, the OOH ad budget accounted for 12% of the total advertising budgets, of which the

highest was communication industry, accounting for 20%.

20%

15%

14%

11%

10%

7%

12%

Telecommunication

Internet

Finance

FMCG

Automobile

Pharmaceutical

Total

2016 Proportion of OOH Ad Budget in Total Marketing Budget for Different Industries

22

Source: Posterscope China


Metro Media: From 2000 to 2020, with the acceleration of the planning and construction of

China's rail transit, the number of metro cities and metro lines will increase significantly, and it is

expected to reach 33 and 1,777 respectively by 2020.

3

10 12

19

33

6 17 51 111

1,777

0

500

1,000

1,500

2,000

2,500

0

10

20

30

40

2000 2005 2010 2015 2020E

The Number of Metro Cities and Lines in China

Number of metro cities Number of metro lines

23

Source: China Industry Research Report


Metro Media: The Yangtze River Delta and the Pearl River Delta will be the most intensive regions

for metro construction in 2020. Main cities include Qingdao, Zhengzhou, Hefei, Ningbo, Nanchang,

Changsha, Guiyang, Fuzhou, and Nanning, etc.

Cities with Metro

constructed

before 2010 (15)

Cities with Metro

constructed

during 2011-2015

(4)

Cities with Metro

constructed

during 2015-2020

(9)

24

Source: CODC


11.2

15.5

22.0 23.6

27.4

0

10

20

30

2012 2013 2014 2015 2016

Metro Ads in China (billion yuan)

Metro Media: From 2012 to 2016, the expenditure of advertising on metro media has gradually

increased and reached 27.42 billion yuan in 2016, of which the website industry has the largest

amount of investment, with larger growth rate. In 2016, website ads accounted for the highest

share of all industries on the metro media, reaching 27%, followed by entertainment, leisure and

service industries.

27%

17%

13%

6%

5%

5%

4%

4%

19%

Distribution of Metro Ads in 2016

Website

Entertainment &Leisure

Service Industry

Real Estate

Software

Communication

Beverage

Finance

Others

25

Source: Civil Aviation Industry Communique 2016


Airport Media: From 2009 to 2016, with the increasingly stronger transporting capacity of China’s

airlines, airport’s media also saw a significant development in China. Moreover, eastern region is

still the hub of airport transportation. In terms of passenger capacity, airports in Beijing, Shanghai

and Guangzhou accounted for about 30% of all the airports in China.

486

564 621

680

754

832

915

0

200

400

600

800

1,000

2009 2010 2011 2012 2013 2014 2015 2016

Airport Passenger Capacity in China (100 million person-times)

54.2%

6.1%

10.0%

29.6%

Airport Passenger Capacity by Region 2016

Eastern region Northeast region Central region Western region

26

Source: Ministry of Railways


High-Speed Rail Media: New technology, late start, and rapid development are main features of

high speed railway industry in China. As of 2016, China’s railway mileage have extended to 22,000

kilometers.

0 1,038

6,000

7,500

9,396

11,152

16,000

19,000

0

5,000

10,000

15,000

20,000

2007 2009 2010 2011 2012 2013 2014 2015

Railway Mileage in China (km)

Cover 28 Provinces

4 Municipalities directly under

the central government

160 prefecture-level cities

250 county-level cities

27

Source: Abaogao.com


High-speed rail media: With the gradual increase of the total mileage of high-speed rail in China,

the expenditure of advertising in high-speed rail media will also increase significantly, and it is

expected to increase to 5.8 billion yuan by 2020.

3.9

4.4

4.8

5.2

5.6 5.8

0

1

2

3

4

5

6

2015 2016 2017 2018E 2019E 2020E

Expenditure of High-Speed Rail Ads in China (billion yuan)

28

Source: The State General Administration of Press and Publication, Ent Group


Cinema Ads: As of 2017, the total box office in the Chinese movie market was 55.9 billion yuan,

an increase of 22.9% over 2016. The number of Chinese film audience has reached 1.62 billion

person times, an year-on-year increase of 18.1%.

22

29

44 46

56

36.7%

49.3%

3.6%

22.9%

0%

10%

20%

30%

40%

50%

60%

0

10

20

30

40

50

60

2013 2014 2015 2016 2017

Box Office in China (billion yuan)

Box-office(billion yuan) Growth rate

182 237

345

462

612

830

1,260

1,372

1,620

30.2%

45.6%

33.9% 32.5% 35.6%

51.8%

8.9%

18.1%

0%

10%

20%

30%

40%

50%

60%

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2009 2010 2011 2012 2013 2014 2015 2016 2017

Film Audience in China (million person-times)

Viewing Person-times(million) Growth rate

29

Source: Ent Group


Cinema Ads: In 2017, the third-tier, fourth-tier and fifth-tier cities in China contributed to more box

office. With the increasing consumption level of youth group in small towns, the film market will

have more incremental opportunities.

24% 23% 22% 22% 20%

44% 43% 42% 41% 40%

17% 17% 18% 18% 19%

10% 11% 12% 13% 14%

4% 5% 5% 6% 7%

0%

20%

40%

60%

80%

100%

2013 2014 2015 2016 2017

2013-2017 China’s Box Office Distributed by City

First-tier City Second-tier City Third-tier City Fourth-tier City Fifth-tier City

30



44.8%

25.5%

0%

10%

20%

30%

40%

50%

2016 2017

Growth Rate of Cinema Video’s Ad Publishing Revenue in 2017

19.3%

6.9% -1.4%

102.8%

8.8%

-10%

20%

50%

80%

110%

140%

Transportation Activity Communication Computer & OfficeAutomation Products

Cosmestics/BathroomSupplies

Top 5 Industries Spent Most on Cinema Video Ads

(2017 VS 2016)

Cinema Ads: In 2017, the revenue from video and TV commercials continued to rise, but the

growth rate slowed down to 25.5%. In the Top 5 industries spent most on cinema video advertising,

computer and office automation products have experienced the largest increase, with doubled

growth rate.

31



Cinema Ads: In 2017, cinema video advertising developed rapidly, and most brands increased the

delivery of such outdoor advertising. Among them, Momo’s expenditure on cinema video ads has

increased by more than 1000% compared with last year.

>1000%

4.1%

52.1%

7.9%

204.3%

53.0%

93.0%

501.7%

233.9%

38.2%

Brands That Have Spent Most on Cinema Video Ads (2017 VS 2016)

Momo

Ford

Youku & Tudou

Tmall

Huanbei

VIVO

AISTZX

JD.com

Pepsi

Hanhoo

32

Source: CODC 2015


Timing

• According to the research, the best time to display OOH ads is when the audience are

commuting, shopping, waiting for departures or on the expressway. Most audience view OOH

ads when they are waiting for traffic lights and bus or taxi.

• Meanwhile, OOH ads have different performance on weekdays and weekends. The reason is

that 81% of the audience have regular routes in their commuting to school or work on

weekdays. However, their mood, routes, and exposures to OOH are usually different when the

audience go to visit friends, go shopping and outings on weekends.

• This phenomenon shows the law between the audience's outdoor activities and outdoor media,

that is, the golden time of OOH ads is the weekend and commuting time. Therefore, for

advertisers who want to promote their brands in OOH media, choosing outdoor advertising in

prime time will have a multiplier effect.

OOH Advertising Tips

33

Source: CODC 2015


Location

• Though the exposure rate of OOH ads in commercial

area is higher, such area with a load of OOH ads can

easily distract audience’s attention. Hence, audience

usually have deeper impression on OOH ads in non-

commercial area.

• Most audience who are exposed to OOH ads at the

airport and on the expressway are high-end

customers, though places like airports have a

relatively lower exposure rate.

OOH Advertising Tips

Ad Displaying Location Reach rate

Downtown area 80%

Street & Vehicle 60%

Waiting area 50%

Housing & Telephone booth & Metro Station 30%-40%

Railway station & Airport & working area 20-30%

Expressway 20%

• Therefore, advertisers can't only focus on CBD areas. Non-commercial areas, airports,

highways, and high-end community are also worthwhile choices. Meanwhile, advertisers also

need to differentiate between different brands and different audiences.

34


2018 OOH Marketing Trends Prediction

Acceleration of

OOH Ads Mobile Connection Real-time Data and

Digital Function

Easier to Access to

OOH for Small

Businesses More Immersive

Experience of OOH

According to the

prediction of Magna

Global, the average

growth rate of OOH ads

would reach 4% in 2018.

OOH media and smartphone

are merging. Mobile location

data can provide new

capabilities for measuring OOH

visibility by connecting outdoor

activities with store sales.

Digital connectivity allows

outdoor media advertisers

to fine-tune their

positioning by using

detailed demographic

data.

A new generation of “click

to buy” OOH ads space

has brought greater

accessibility to the media.

Advertisers will seek new

ways to integrate immersive

VR and AR experience into

the delivery of OOH

information for customers.

35

Source: Chinabgao


Top 10 OOH Company

Focus Media Air Media

Vision China Media JCDecaux

Clear Media

Bus Online T Media Tom Outdoor

Dahe Media Bailintimes

We have collaborating offices in

· SH · HK · TYO · SEL · SYD · MOS · BER · LON · PAR · ROM · NYC · SF ·

Visit our website to learn more: https://beyondsummits.com/

Your Global All-media Marketer

2016 china media overview - ooh part - cn&en · in the first half of 2017, china’s ooh ads...

Documents