viewpointA definitive insight into the Irish Out of Home industry 07 Dec 11

ooh for 2012Bravo, CBS, Clear Channel &

JCDecaux outline their views

for OOH in 2012

ooh around the globe A number of Kinetic markets

review OOH in 2011 and share their

predictions for 2012

iTaggedThe new mobile app from Kinetic that

instantly connects you to enhanced

mobile content

02

introduction2011, a year of two halves!The first six months in broad terms did quite well and expenditure levels were in line with 2010 giving the belief that the market had stabilised. Unfortunately, this was not to last and the picture changed radically in July-December with spend levels down by double digits with Q3 performing the worst. Q4 has benefited from large spends from clients such as Muller Dairy, eMobile, Universal Pictures and Emirates with the introduction of their fully wrapped Dart. These campaigns have certainly helped, but we estimate the full year will end up down 14-15%.

Looking to 2012, it is virtually impossible to predict where the market will be as lead times have gone so short. What we do expect is a slower start to the year and expenditure to grow as the year progresses due to the Olympics and European Championships. 2012 will once again see FMCG clients investing in Path to Purchase and also some big spend for a number of blockbuster movie releases – Dark Knight Rises, SuperMan, Snow White and the Huntsman and the final part of the Twilight Saga. Interestingly, we are seeing increased investment from the Motor Sector which will help Q1, with the majority of motor manufacturers set to use the medium.

OOH is evolving and even in these difficult times, the media owners continue to invest in their plant. Clear Channel has retained all the Citylight contracts after a competitive bidding process. Bravo has introduced new innovative formats along the Dart with the option to wrap trains, wrapped carriages and Dart Kings. Megasquares were also introduced during the year and have proved popular, with Universal Pictures the first advertiser to use the format. CBS Outdoor has invested in great research showing the cut-through of their Digital formats and we’re looking forward to their digital developments in 2012. JCDecaux continues to roll out their HD posting with Sky availing of it heavily in 2011.

The DAA are in exploratory talks with media owners with a view to possibly awarding their advertising to an outside company as this is currently managed internally by the DAA. New innovations, new printing technologies and new digital formats will lead the way in 2012 with the possibility of iconic digital signage on bridges in the New Year.

Finally, we are delighted to launch iTagged, the brand new mobile platform connecting you to enhanced mobile content via your smartphone. Our general awareness campaign is currently on street. Audi is the first client on-board with a superb campaign for their Audi Q3. Check it out by entering the tag ‘Q3’!

SimonDurhamManaging Director, Kinetic Irelandsimon.durham@kineticww.com

Find us on:www.facebook.com/KineticIreland www.twitter.com/KineticIreland

A definitive insight into the Irish Out of

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hello

Kinetic is delighted to launch iTagged, a new mobile app that instantly connects you to enhanced mobile content without typing URLs or scanning. Just enter a tag (i.e. specific word) into the app and the information is delivered directly to the device. iTagged is available for free from the App Store and Android market and allows mobile devices and tablet users to access content such as music, videos, contact information, social networks, promotions and much more!

iTagged launched on the Irish market on the 28th November and the general awareness campaign is running until the year end. Look & listen out for our posters, print advertisements and radio ads. Users simply download the app, enter the tag win, play the game and they are in with a chance of winning an iPad 2.

Furthermore, we are thrilled that Audi are the first client to use iTagged with a magnificent campaign for the new Audi Q3. Users can learn more about the Q3 SUV, register their interest in a test drive, contact dealers, play around with the car configurator and view videos of the Q3 in operation.

Speaking about the campaign, Orna Conway, Audi General Manager Product & Marketing said, ”We are delighted to be collaborating with Kinetic on the launch of our eagerly awaited Audi Q3 model. This cutting-edge iTagged technology is brand new to the Irish market and will be a great platform to communicate with our new and potential customers. With over 600,000 smart phones in Ireland, this was an ideal platform to help launch our exciting Audi Q3 and this mobile media platform compliments our overall marketing strategy.”

The campaign was booked through Debbie Kiely, Business Director at Mediacom.

With smartphone penetration in Ireland increasing constantly, iTagged bridges the online-offline divide simply by creating a direct link to the optimised mobile content.

Download it and let us know what you think!

For more information contact Simon on 01 6681822 or email simon.durham@kineticww.com

to continue into 2012 as more clients search for a return on their investment.

will repay the investment manifold over the recovery years.

For our part, Bravo will continue to lead the market in 2012, particularly in terms of innovation. Clients love to use outdoor for the wow factor allied to its reach and frequency achieved on our standard formats. Our newly-introduced transit innovations, Megasquares, full colour Dart train, Rail Doors and Rail Kings deliver just that. The secret however in the current climate is to ensure that outdoor remains a low cost medium that delivers a quantifiable return on investment to our clients. In these challenging times, this is our firm focus. We at Bravo remain optimistic for the future as we strive to enhance our service and product innovations throughout the forth-coming year.

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ooh in ireland 2012 Bravo - James BarryRecent studies by IBEC and Ernst and Young suggest that we are now in the foothills of a recovery in economic growth that will be sustained over the next several years. It may not feel like it at the moment as the Eurozone crisis plays out in a destabilising manner, but the Irish economy will finish the year in positive growth territory.

We expect 2012 to continue to demonstrate small signs of recovery in advertising terms, retailers are talking about

increasing their employment levels next year, which is encouraging. Smart marketers will realise that now is the time to overindex on share of voice leading to increased share of market. This

Clear Channel - Maria TaaffeWhen asked to make predictions for 2012 it is tough to predict the following week and even tougher next year! The private sector has risen to the economic challenges we all face and taken most of the pain on their way to becoming leaner and fitter and have adapted to the new economic realties we are operating in. And looking forward this augurs well for advertising in general but Outdoor in particular. Why? Because Outdoor is well positioned as the last broadcast medium to continue to deliver great value for money to clients compared to other media.

And within outdoor Adshel is very well positioned to deliver to clients exactly what they are looking for – great audience coverage, superior message frequency and value for money.

This year we have seen growth from both the entertainment and retail categories and we expect this

clients to our medium and to demonstrate the unique power of outdoor, how it drives awareness and grows stature, stimulates confidence, building new brands and rejuvenating older ones along the way too.

New clients will grow from the digital world; the smart-phone has taken the internet outside the home and onto the streets. Outdoor advertising is an obvious partner to brands who are looking to develop and grow in this space.

And finally it’s not every day that we qualify for the finals of the European soccer championships and that should put a bit of life into the market come summer. Who knows we might even win it... well, there’s no harm in being optimistic.

Digital OOH media is in its early infancy here in Ireland but you will see continued growth in digital and digital revenues next year. Obviously part of this growth will be driven by the investment we and others will be putting in the medium. We will be delivering a new premium digital mall network in Q1 with more to come throughout 2012. A key focus for us will be on interactive technology which will allow advertisers to combine their outdoor campaigns with experiential and new media technology to generate long lasting levels of consumer awareness and engagement.

In the context of the changing relationship between consumers, digital, mobile technology and the desire and demand from advertisers for reach and engagement, Outdoor is well positioned going into 2012 to deliver highly targeted and engaging advertising via digital and broadcast reach via traditional billboard panels.

CBS - Colin LeahyNothing focuses the mind like a difficult market and nothing asks bigger questions of how we will engage with our audiences than a difficult market.

The rules today are very different and that requires and demands a new way of working with our customers and in 2012 OOH will need to continue to embrace this change.Key themes will include – Return on investment and Digital. All marketing activity must now, more than ever, deliver a return on investment. Advertisers will want to know not just how many people have seen their campaign but how many have responded to their campaign. Outdoor is well positioned to respond to these demands. Research like CBS Outdoor’s “Europe on the Move” provides valuable insights in audience behaviour which allow advertisers to reach their audiences in a more targeted way and with a more focused approach to audience delivery.

We have recently completed a significant research investment with Brandscience on the efficacy of the OOH medium at delivering effective returns on investment. The

study incorporates the use of specific ROI planning tools to enable advertisers to maximize their investment in varying media for an optimum RROI.

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JCDecaux - Pat MannionIrish people are generally recognised as being a resilient bunch with a positive outlook on life. It hasn’t been easy to remain this way in recent times but there is plenty to be optimistic about for out of home media as we head towards 2012.

Across the industry on roadside, transport and in retail the quality and diversity of formats available to advertisers has never been greater, or more affordable. This gives us a great opportunity to attract new

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2011 has been a challenging year in the UK, with consumer sentiment largely uncertain. However, advertisers have embraced the philosophy of change and many mainstream brands have used the medium to drive interactive customer experiences.

When you get the likes of Fosters, IBM, Heineken, British Airways, Ford and Lynx pushing the boundaries of the medium, showcasing great digital interaction and using augmented reality and social media to amplify the

ooh aroundthe globe

The UK messaging, it shows we’re in a great place.

2011 is likely to be flatish year-on-year (within which the DOOH sector is booming), not bad in the context of the European economy, but we have high hopes for 2012, with the Olympics coming to the UK, and further opportunities presented by the European Championships (come on England!) and the Queen’s Diamond Jubilee. These events will ensure people are more active and mobile; the Olympics will attract an influx of over 5 million visitors to London alone.

We are already seeing growing technology usage linking into the Out of Home experience, as retail, mobile and NFC technology takes hold and starts to truly engage consumers. The smartphone phenomenon will empower audiences to be more flexible on the move, using location to drive

the overall brand and purchasing experience. With media owners continuing to invest in the medium, we are ready for real change and the new era of mobile enabled OOH will allow consumers to link straight to advertiser websites and exclusive content on their smartphones. 2012 will be about learning from earlier experimentation and taking large scale first mover advantage.

JamesCopleyKinetic UK

Kinetic is a truly global network with 38 offices in 36 cities in 21 countries. As the global leader in understanding how brands can connect with people’s lifestyles and the environments they engage with, we asked a number of our Kinetic offices across the globe to share with us how OOH performed in their markets in 2011 and what to expect for 2012.

OOH in Spain will face a decisive year in 2012 for its future development towards rationalization and therefore becoming a real alternative to TV. The economic frame in which the country is immersed, although quite uncertain and dark, will not be able to hide the push of OOH. The scenario will be determined by two key factors that, in my opinion, could radically drive change.

The first one is clients: as their needs evolve, both in terms of segmentation

Spain and short term profitability (this is the same as to say efficiency, more than ever the real focus), the development of new audience-based products becomes the key area in which both agencies and media owners together must invest. In this sense, digital, with its full power (daypart, interaction, mobile compatible, etc ) can add real value if well projected.

The second relates to Media Owners. 5 of the top 10 contracts in Spain go tendering in 2012. This includes important ones such as Madrid Street Furniture, Madrid Underground or Madrid and Barcelona airports. This actually means that more than 25% of the market value will be in a pitching process. This will surely result in a big change of the current landscape. As a matter of fact OOH needs someone to lead the way, and a real leader could emerge, facilitating the awaited “revolution”.

These two factors by themselves will make the difference for the coming years, where the real challenge is optimization (market and spending must be reorganized). The role of Kinetic in this arena is, as stated in our mission, being thought leaders, assuring that all these changes favor OOH as a whole and enhances clients’ service as our key stone.

EnriquedeOcioKinetic Spain

The 2011 year end forecast for the Italian Out of Home market shows a negative trend: €589 million is its total value, meaning a 5.2% decrease in comparison to 2010. Nonetheless, by

Italy analyzing the single OOH segments we notice that two of these are performing very well: Street Furniture with a 10.2% increase and Digital Out of Home with a 109.1% increase compared to last year. These two segments represent the newest innovation in the market. The positive trend is a result of new installations in various Italian cities and, consequently, of a greater interest and spend by clients.

Regarding Street Furniture, the greater developments took place in Milan: Clear Channel won the management of the bike sharing 2 years ago. They installed various quality backlit panels of different sizes very close to the bike pick up areas.

The Digital market has grown thanks

to an increase of screens in two main environments: underground and airport. The digital panels are of different types: some are portrait which allow animated images for an eye-catching effect; some others are landscape, more suitable for displaying 15 or 30 second tv spots.

Forecasts for 2012 remain negative but all depends on the overall economic situation which affects all businesses.

AlessandroMombelloniKinetic Italy

In the overall Turkish advertising market, total spending compared to the previous year increased by 20% in 2011 H1 and it’s expected to reach to a value of 4.3 billion TL by the end of the year. The majority of expenditure comes from TV; which is 58%. Printed media is next with 24% and the outdoor investment comes in third with 6.9% as of 2011 H1. For the end of the year, estimated share of outdoor is 7.7%.The growth in total ad spending was mainly

Turkey driven by public institutions, health, construction, furnishing, home textile, entertainment, culture, sport and education sectors. The digital formats and special projects were not included in the above figure but the share of digital in total OOH is around 4% at the moment and it is expected to increase 5.5%.

There are two major changes expected to affect OOH market in Turkey: digital usage and the new rating system: “POSTAR data.”

Usage of innovative and interactive applications, which integrate the basic media formats, is promising. As the number of mobile users doubled and reached 1.8 million in 2011, we need to focus on more digital projects that create awareness and WOM in order to adapt to the new world. Therefore, we believe that 2012 will be the year of digital, where Kinetic Turkey will keep

leading the way in innovative digital projects.

The audience measurement system; POSTAR is the other change that will have a drastic impact on OOH strategies. POSTAR study will start to be used by 2013 and, in this sense, as a leading company Kinetic Turkey will make the implementations and the necessary set-ups of the study.

BaharErdoganKinetic Turkey

At the beginning of 2011 advertisers reacted with rising budgets. Advertising expenses in OOH grew by 7.3% from first to third quarter. The Top 5 advertisers in the German OOH market

Germany are E-Plus Mobile, Media Saturn holding company, Volkswagen, Hennes & Mauritz and Axel Springer AG.

The growth of this year is based on the positive economic pulse of the previous year. Companies took advantage of the positive consumer confidence and amplified their OOH-spending to expand their market shares and sales.Some branches slightly reduced their expenses in OOH since the beginning of the year. Specifically, trading organizations cut down their expenses in advertising in the first nine months of 2011. While two years ago in the financial crisis, trade was a stable and important prop of the advertising market, the companies now reduced their spendings by about 8.2%. The German digital out of home grows continuously. The first half of 2011

shows even a higher growth rate of 40 to 50 percent. Compared to other media countries digital out of home still has a small market share. But thanks to above average growth rates DOOH is one of the fastest growing media - only second to mobile advertising.

Digital outdoor media is becoming more and more present in diverse environments and the quality as well as booking of the screens is constantly improved. Overall Out of Home communication is becoming more and more important and also in 2012 Out-of-Home media will play a crucial role in the media mix. Furthermore the market is ready to invest in innovations and high-quality OOH media.

We expect that the OOH-market 2012 will be at least on stable level.

RalfStoffelKinetic Germany

A definitive insight into the Irish Out of

Home industry

www.kineticww.com

A definitive insight into the Irish Out of

Home industry

www.kineticww.com

The Water Dragon makes his dramatic entry this Chinese New Year, heralding a fiery 2012 for Asia.

In the 6 Kinetic AP markets we expect double digit expansion to billings of over 650m. China leads the surge but India too looks increasingly strong and

Asia Pacific there are now healthy businesses in the Philippines, Thailand, Malaysia and Singapore.

The AP outdoor market is characterised by a strong billboard sector. In many markets, especially in South East Asia and India, the long term, hand selected tarpaulin sites still predominate. Street furniture is still a relatively new concept. The quality from White Horse in Shanghai for example is high, but the shelter numbers are still small by Western comparison.

Markets are still dominated by small regional players. Kinetic will trade with nearly 1000 vendors in China and India next year for example. Consolidation will happen but not any time soon.

The real growth though is in digital. Over a third of Kinetic spend in China is digital and the sector is exploding everywhere apart from perhaps in India.

Large LED screens are actively encouraged in Asia. With the new tenthavenue content and production products coming online these are interesting times. There is large scale capital investment in transport networks and airports targeting audiences like the 5 million people who use the Beijing Metro every day.

Predictions for next year? Technology. In DOOH, mobile, NFC, content and in online planning. In 2012 the Dragon’s fire will be binary.

ChrisO’DonnellKinetic Asia Pacific

The United States Out-of-Home market has been steadily on the rise since reaching a five-year low in 2009. In the first half of 2011, spending increased 4.4% over the same time last year, accounting for $3.3BN, and forecasts estimate that this growth will continue over the next two years as we see larger spending with clients in the financial, retail, and automotive sectors.

Many factors have contributed to increased OOH spend, including the transition to digital formats and the introduction of a new measurement system for the industry called Eyes On. Eyes On replaces Daily Effective Circulation (DEC) and improves upon the old system by providing site by site demographics along with campaign reach, frequency, and GRPs. This is a

USA substantial benefit to our industry, as Eyes On will revolutionize and simplify the way OOH media will be planned and bought moving forward.

The digitization of OOH, including the increased integration of mobile into the medium, has also been a significant influence on OOH’s performance in the United States and will continue to drive the industry forward in 2012. With technological advancement

thriving in outdoor, we are seeing more campaigns incorporate social elements such as QR codes and logos for the advertisers’ Facebook and Twitter feeds. This integration will only increase as mobile companies debut phones with enhanced interactivity including Near Field Communication (NFC) ability.

DavidPayneKinetic USA

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innovations

Coca Cola Shares Magic

Coca Cola spread some extra magic this year with their Christmas OOH campaign. The multiformat campaign featured a number of specials which definitely helped to bring a smile to the nation. Purchase Point Dispensers which ran in Dublin, Cork, Limerick and Belfast gave passers-by a free can of Coke once they activated the touch sensor with a simple wave of their hand. Over 50,000 mini cans are expected to be dispensed for the duration of the campaign. Furthermore, Citylight EL specials also ran, with the Coca Cola truck and the words Holidays are coming lighting up to deliver a magical effect. It’s safe to say – Christmas is finally here! Universal McCann was responsible for the media, McCann Erickson for the creative and Eclipse Media & CBS Outdoor organised the Purchase Point Dispensers.

Versace for H&M

Versace for H&M landed in UK stores on Thursday 17th November. To raise awareness and create excitement, giant branded H&M/Versace bags were placed in prominent locations around London such as Covent Garden piazza, Potters Field by Tower Bridge, Trafalgar Square and in both Westfield White City and Westfield Stratford. The bags were an exact replica of the Versace branded shopping bag that is provided when you purchase from the new Versace range available in H&M stores. The bags spent 3 days at each location. The bags created a huge social media following with Twitter and Facebook users uploading their pictures to be in with a chance of winning one of the £20 store vouchers on offer by H&M.