dooh industry needs standards to breakthrough
DESCRIPTION
Dirk Huelsermann's presentation "DOOH Industry needs Standards to breakthrough" from #ScreenMediaExpo 6th May 2010TRANSCRIPT
DOOH Industry needs Standards to breakthrough
DOOH is growing faster than any other media
DOOH is growing faster growing media
Global DOOH spend is projected to reach 10.65B USD by 2012 (CAGR 14,5%) 2
DOOH AD spend in Western Europe will quadruple to 626M Euro which represent a CAGR of 32% (compare to OOH CAR of 3%) 1
DOOH’s market share: 30% in 2008; 45% in 2013 (US Market) 3
DOOH can generate 3-10 times more revenue than static formats
1 Source: Goldmedia and Screen Digest2 Source: PQ Media, 20093 Source: Veronis Suhler Stevenson, 2009
AD Spend vs Growth Rate
Source: PQ Media, Veronis Suhler Stevenson; 2007 – 2008 advertising revenue growth
Newspap
erRad
io
Consumer M
agaz
ines
B2B Maga
zines
Broad
cast
TV
Cable TV
OOHDOOH
Online/M
obile0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
0.3% 0.4%
4.0% 4.2%6.7%
8.2%
12.0%
27.5%
37.7%
14
6 72
3
8
5
9
AD Spend Share Rank
Challenges of the Industry
DOOH is still fragmented and difficult to book and aggregators haven’t take off
yet
Network reach needs improvement – bigger networks with bigger reach are required, but that means increased investments
Find common standards and metrics to help brands and agencies to understand the media
DOOH Industry need make their homework !
The media must be easy to plan and buy!
Exercise: Plan a European campaign
AggregatorAgencies Networks
AggregatorAgencies Networks
Contact around 300 networks
AggregatorAgencies Networks
Contact around 300 networks
Contact around five aggregators
AggregatorAgencies Networks
Contact around 300 networks
Contact around five aggregators
Consistency of Data is an
issue
AggregatorAgencies Networks
Contact around 300 networks
Contact around five aggregators
Consistency of Data is an
issue
AggregatorAgencies Networks
Contact around 300 networks
Contact around five aggregators
Consistency of Data is an
issue
AggregatorAgencies Networks
Contact around 300 networks
Contact around five aggregators
Consistency of Data is an
issue
Standards are the driver for emerging industries
Associations and Metrics are needed
Year 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 $-
$5
$10
$15
$20
$25
Internet Advertising Revenue ($ Billions)
IAB LaunchedInteractive Advertising
Bureau
Audience Metrics
Launched
Associations and Metrics are needed
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Proj
$-
$100
$200
$300
$400
$500
$600
$700
$800
$900
Cinema Revenue ($Millions) We’re on the right side of history…
Cinema TradeAssoc. Launched
Nielsen StartsCinema Metrics
Indicates downturn with economic recession
OVAB Europe
OVAB Europe was founded 13.11.2008
First independent pan European DOOH association
14 Member companies in seven European countries
Strong co-operation with DPAA (formerly OVAB US)
OVAB US/DPAA
Networks: Suppliers:
Vision – Mission - Strategy
Vision
DOOH media should become a major player in the marketing and media industry.
Mission
Our mission is to raise the awareness and to establish DOOH as media. OVAB Europe is the independent representation and spokesperson for the European digital-out-of-Home industry.
Strategy
1. Continues communication of the DOOH advantages . 2. Education of advertisers and media executives. 3. Setting of industry standards and guidelines
OVAB US Metric Guidlines as Blueprint for Europe
Objectives of Metrics
The OVAB Europe Audience Metrics Guidelines
seek to provide a basic set of comparable metrics
It is the beginning of a process to define
acceptable research methods for their
measurement
It is proposed to use the Average Unit GROSS
Impressions to describe a vehicle in a venue; this
data is derived from the Average Unit Audience
Venue Traffic
Average Unit Audience
(AUA)
Venue Traffic: total number of visits, over a period of
time, occurring in venues
(Media) Vehicle: electronic medium employed in an
advertising campaign
Vehicle Traffic: Number of visits, over a period of
time, with presence in the vehicle zone
Audience: The number and type of people exposed to
a vehicle with an opportunity to see (OTS) the typical
advertising unit.
Vehicle Audience: Vehicle traffic with notice
Notice: Looking at a vehicle (screen) while in the
vehicle zone (the physical area in which a person is
able to see and/or hear a specific, place-based
advertising vehicle)
AUA: the vehicle traffic, with notice, for a unit of time
equal to the typical ad unit
GROSS VENUE TRAFFIC
PRESENT IN THE NETWORK ZONE NOTICE
NETWORK DWELL TIME
AD ROTATIONDURATION
LESS VALUABLE $ MORE VALUABLE $
= AUDIENCE IMPRESSIONS
Calculation Example
Network 4-week Schedule Period
Venue Traffic (000) 193,000
% in Network Zone x 85%
% Notice Network x 58.8%
Network Audience (000) = 96,461
Network Dwell Time/Ad Rotation Duration(5.2/6 = 86.7 , where dwell time and ad rotation duration expressed in mins)
x 86.7%
Audience Impressions (000) = 83,631
Source: Reputable Research Inc. Qualifications/Disclosure form available on request.
Clear, easy to follow
Well sourced with offer of full disclosure
Key Takeaways
The Guidelines establish common language and metrics reached through a consensus
Audience impressions are a higher quality measure and are comparable to other media
Disclosure is key
Guidelines allow for innovation and growth
Elevates this media to the strategic planning conversation
Homework
Consistency and industry standards are needed to secure the growth of the DOOH industry
Advertiser need to know what they buy and what they get
Deliver what the Advertiser bought and proof that to him
Don’t promise what you can’t deliver
Trust, Consistency and Credibility is the Key
Homework
Contact
OVAB Europe e.V.Rosenheimer Str. 145eD-81671 MunichGermany
T: +49 (0) 89 2000 416 80F: +49 (0) 89 2000 416 99E: [email protected]: www.ovab.eu