European Out of Home guide 2015

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European Guide to Out of Home


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Contents

A note regarding data sources used in this guide. With few common sources of data spanning more than one country, the figures used within this guide are taken from several sources. The source used for each dataset accompanies the data itself. GroupM’s ‘This year Next Year’ global report published in July 2014 has been an invaluable source for much of the pan-European data. The Kinetic network of offices have provided much of the local data and intelligence. Data relating to vendors, formats, advertisers, and example campaign costs for the individual markets covered in this guide are all based on Kinetic’s current local market understanding.

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The campaign guidelines are intended as illustrative guidelines only and are based on representative estimates at the time of writing. Readers will understand that these and all other data shown here are subject to continuous change. Every effort has been made to ensure the accuracy of the contents, but the publishers cannot accept liability in respect of any errors or omissions. Please contact your local Kinetic office if you would like more detailed recent data, insights, or cost estimates. A list of our European offices and affiliates is included in the About Kinetic section of this document along with their addresses and contact details.

Introduction

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About Kinetic

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European contacts

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The European Out of Home marketplace

Media spend OOH expenditure Mobile, smartphone, broadband and tablet penetration Digital Out of Home as a percentage of revenue Path to purchase Environments Vendors Advertiser sectors Airports

7 8 9 8 12 13 14 15 16 18

Kinetic comment

20

Individual market overviews

21 21 27 33 39 45 51 57 61 67

Belgium France Germany Ireland Italy Spain Switzerland The Netherlands United Kingdom

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Introduction

About Kinetic

Welcome to Kinetic’s 2014/15 European guide to Out of Home media. The aim of this document is to provide useful and informative insight into the OOH medium in each of the key European markets and to analyse the major formats, environments, and vendors that are shaping the medium across Europe. We also provide insight into the advertisers and product sectors that are prominent within each market. Given the relative lack of data available for most Eastern European markets, this document inevitably focusses on the major Western European nations. Within this scope, the country-bycountry section of this document reflects the fact that the look and feel of Out of Home inevitably varies from one market to another and is a medium that

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both occupies and exploits the environments it is found in. The extent and pace of urbanisation in each market inevitably shapes the Out of Home opportunities that each has to offer which is certainly reflected in the different types and volume of OOH display available. There is no ‘one size fits all’ when it comes to planning effective OOH campaigns in different European markets. And yet Out of Home (OOH) is arguably the only ‘traditional’ medium that is both developing with and benefitting from the rapid expansion in consumer digital technology. So when we look at what is driving the development of Out of Home across the continent, we can see the same elements at play in each country. Technology is providing the engine behind many developments in

the way that consumers are using personal technology is changing as significantly as the technology itself and is just as unrestrained by geography. Consumer attitudes and behaviours, not least their increasingly complex routes to eventual purchase, are acting to make OOH ever more relevant within the media landscape. Its continuing ability to address consumers en masse whilst targeting specific and relevant physical environments on that complex route to purchase is unparalleled. We hope you will find this guide helpful and that it provides you with a better understanding of the OOH medium across Europe, highlighting the unique communication opportunities it has to offer to agency planners, buyers, and clients alike.

Our mission is to pull forward and make real the future possibilities of the world of Out of Home communication. Fully owned by WPP and part of the tenthavenue performance marketing division, Kinetic’s expertise and insight helps deliver solutions for clients that achieve ambitious brand and marketing goals. We have an ongoing commitment to understanding and engaging with people on-the-go. Kinetic has developed centres of excellence in digital and aviation media, research, insight and data, mobile strategy and

OOH printing and production. We strive to maximise the impact of our clients’ investments by embodying a culture of restless creativity, datacentric planning, and the intelligent application of scale. Kinetic’s network reaches across the globe. From offices in 43 cities in 18 countries, we offer dedicated expertise in consultancy, planning and buying solutions and have developed strong partnerships with clients, agencies, suppliers, media owners and technologists.

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For more information about Kinetic, please visit www.kineticww.com

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European Contacts Stuart Taylor

CEO, Western Europe London, UK stuart.taylor@kineticww.com

The European Out of Home marketplace Arnaud Vandenberghen

Managing Director, Kinetic Belgium arnaud.vandenberghen@kineticww.be

Dennis Kuperus

Simon Durham

Thorsten Ebbing

Alberto Cremaschi

Xavier Sorato

Silke Vollmann

Tom Perrett

Kathrin Petrow

CEO, Benelux & Nordics Amsterdam, The Netherlands dennis.kuperus@kineticww.com COO, Central Europe Germany thorsten.ebbing@kineticww.com Managing Director, Poster Conseil Paris, France xsorato@posterconseil.com Head of Aviator EMEA London, UK tom.perrett@kineticww.com

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Managing Director, Kinetic Ireland Dublin & Belfast simon.durham@kineticww.ie Managing Director, Kinetic Italy alberto.cremaschi@kineticww.com

OOH, Product Director, GroupM Madrid, Spain Silke.Vollmann@groupm.com Managing Director, Kinetic Switzerland kathrin.petrow@kineticww.com

It is impossible to understand the OOH market’s recent performance without putting it into the context of the broader media landscape and the overall economic background that fuels media expenditure. Europe has suffered very badly from the financial crisis and subsequent economic recession since 2008, particularly amongst the ‘Eurozone periphery’ (Italy, Spain, Portugal, Ireland, and Greece), where GroupM estimates that in real terms, advertising investment stood at only 57% of its 2007 peak as at July 2014. Whilst all of these markets are showing welcome signs of gradual recovery, they have seen nothing approaching a rebound. This in turn impacts upon the overall European figures. The same source predicts that

2014 will see an overall increase of 1.2% in media spend across Western Europe with a further annualised increase of 2.1% in 2015.

Predicted OOH Spend by Country 2014 & 2015 (Source: GroupM TYNY July 2014)

Turning to Out of Home expenditure, the GroupM figures estimate revenues of $7,005m for Western Europe in 2014 rising to $7,178m in 2015. This equates to a 6.5% share of all media spend across each of these years. When broken down by country, the value of Out of Home media spend varies considerably across Western Europe, with France holding the biggest single market by value and Greece the smallest.

The GroupM figures estimate revenues of $7,005m for Western Europe 2014 year rising to $7,178m 2015 kineticww.com


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Total media spend and OOH as a percentage If we rank these countries by the percentage of all media spend allocated to OOH media, their relative order changes significantly with only Switzerland, Portugal, and France seeing more than 10% of all media spend finding its way into OOH media. Within the individual market data, the relative share of total media spend represented by OOH is influenced by a number of external factors, e.g. the relative concentration of population, access to digital TV and the internet and the penetration of mobile and smartphones. In all but a few of these countries, OOH revenue is predicted to continue to grow both this year and and next.

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OOH Expenditure OOH as % of total media spend (Source: GroupM TYNY July 2014)

In most of the markets considered within this guide, we can therefore expect OOH media expenditure to grow over the next few years, in many cases ahead of the rate of growth in overall media expenditure.

% +/- annual change in OOH spend (Source: TYNY July 2014)

Why should this be the case? It would be easy to cite DOOH as the single architect and driving force for this growth, but that would be far too simplistic for such a broad pattern. Apart from anything else, the use of personal digital devices still shows considerable variation from market to market, although the adoption of these devices is generally pretty high in Western Europe.

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Mobile, Smartphone, Broadband and Tablet penetration In several markets the number of mobile phones already exceeds the population, whilst the penetration of smartphones is well over 50%.

Mobile & Smartphone penetration*

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With broadband access exceeding 70% and more than a quarter of individuals owning a tablet in most markets, it is clear that consumers in Western Europe are digitally active and have

access to a range of devices in some volume. So how are they using these devices and how active are they?

Broadband & Tablet penetration*

Online shopping as % of retail spend

Twitter users(m)

Facebook users (m)

Other social media (m)

Approximate Population (m)

Belgium

5%

1.1

5.4

8

11

France

2%

5.6

28

33

64

Germany

11%

27.4

7.6

29.6

81

Ireland

30%

0.75

2.4

n/a

5

Italy

n/a

9.6

23

20

60

Netherlands

25%

4.8

12.4

10

17

Spain

5%

6.7

17.6

7

46

Switzerland

6.5%

7

4.3

n/a

8

UK

21%

12.2

35.1

n/a

65

There is a clear increase in access to and use of sophisticated consumer devices for online shopping and socialising. Digital development in all its guises undeniably provides a considerable engine for both consumer spend and advertiser investment. But it would be wrong to translate this trend into a blinkered focus on DOOH as Out of Home’s only means of harnessing these opportunities *Source: Belgium = Kinetic / MEC estimates 2013; France = Kinetic estimates 2014; Germany = Kinetic 2015 projections; Ireland = Comreg 2014; Italy = Comscore 2015 projections; Netherlands = Gfk 2014; Spain = Kinetic 2015 projections; Switzerland = Comparis projections 2015; UK = Ofcom 2014 & 2015 projections

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DOOH as a % of OOH revenue Digital Out of Home is certainly an exciting and creatively flexible addition to the medium’s armoury and is showing significant growth, but it remains a relatively small part of the medium’s overall arsenal. Digital does not yet represent 10% of revenue from major OOH environments in all but one of these markets. In terms of the number of actual digitised panels in existence, we are still looking at less than 6% of the overall OOH estate in most countries. Even in the UK, where DOOH will probably represent c. 27% of total OOH revenue within the next year, it still represents no more than 10% of the available inventory.

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Path to purchase DOOH as % of all OOH revenue (Source: Kinetic estimates 2014)

This is not intended to diminish the importance of DOOH – it is of growing importance within both the OOH market and the overall media landscape and will have a positive impact on advertising revenue in the longer term. But it is not yet the core asset of OOH media, or the primary cause of revenue growth across the Western European Out of Home industry as a whole. We would argue that consumers’ increasing use of digital media and devices as a means to purchase is currently more important. As the route to purchase becomes more complex, and involves an increasing number of both devices and information points so OOH’s ability to intersect with that path is vital. And that interaction with consumers is not reliant

on digitally enabled signage or even NFC or QR code technology. Recent research carried out by Kinetic Ireland (in conjunction with Mindshare and GroupM) used eye-tracking technology and subsequent interviews to investigate grocery shoppers’ interaction with OOH media in Dublin and Cork. Amongst the key findings were that 74% of shoppers looked at posters on their way to the store and that 54% of respondents could accurately recall the messages they had seen. Although a relatively small and quite specific piece of research, it provides just one example of the power of OOH in getting timely, appropriate, and influential messages to consumers en route to and immediately before making purchases.

Through its Insight teams, Kinetic is involved in a number of other research initiatives looking to harness tools and disciplines such as Econometrics and Behavioural Economics to gain an even better understanding of consumer behaviours and mind-sets when out of the home. With OOH revenue increasing in so many of the markets covered by this report, OOH media clearly has an enduring and expanding role to play in the increasingly digital media landscape that we find across Western Europe.

As the report’s summary says; 'As a result, brands can now plan their media formats along the Path to Purchase according to the appropriate audience. In addition they can also start to use a variety of creative messages consistent with the key communication advantage of the media format, its target grocery shopper and their proximity to the grocery store. An average 52 minutes are available for brands to compel targeted engagement with the appropriate segment that are in decision-making mode while shopping.’ kineticww.com


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Roadside and Street Furniture

Environments Variations in the nature and availability of data for the range of OOH formats, environments, and display types makes it impractical to try and combine data for all of the disparate markets discussed here. However, by combining those data sets that are generally compatible, we can derive some overall market data.

OOH Environments The individual market dynamics are shown within the country-by-country section of this guide, but the most notable revenue growth across the market in recent years has been in ‘Street Furniture’. There has also been some general growth in OOH spend in Retail environments, although this remains a relatively small proportion of overall spend in most markets. The combined expenditure data for

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the major environments shown does not represent absolute total revenue as there are many ‘other’ formats in each market, representing significant additional spend in some cases.

Total spend by major common environments (Source: Kinetic local estimates & projections*)

As we’ve already illustrated DOOH still represents a relatively small proportion of overall OOH spend across Western Europe, but it is growing quite rapidly. Detailed DOOH spend figures are not available by environment in many markets, but we estimate that digital’s overall contribution to OOH spend has risen by over 70% between 2012 and 2015.

We estimate that digital’s overall contribution to OOH spend has risen by over 70%

Given the variations in data sources and the continual shift in absolute panel numbers, particularly within Transport and Retail environments where so much digital investment is being made, it is not possible to accurately track the number of physical displays available across the board.

Number of Roadside & Street Furniture panels (Source: Kinetic local offices & projections*)

However, as the chart illustrates the number of Roadside panels across a broad selection of markets is generally declining whilst the volume of Street Furniture inventory is inching up.

* Includes Belgium, France, Ireland, Italy, Netherlands, Spain, Switzerland, & UK

* Includes Belgium, France, Germany Ireland, Italy, The Netherlands & Spain

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17. Est. Vendor share of major format OOH revenue 2014 (Source: Kinetic estimates*)

Advertiser sectors

Vendors Inevitably the overall vendor landscape is populated by a vast array of media owners, but a few large players take the lion’s share of revenue within each individual market.

Although definitions and rankings also vary from country to country, there is a general consistency about the advertiser sectors that top both the all media spend charts and any ranking of OOH advertisers across most of these markets.

Getting a picture of how each vendor fits into an overall Western European pecking order is complicated by the variety of formats and environments across the continent. If we focus just on the major environments we used earlier (Roadside, Street Furniture, Transport, and Retail), we can get an overall feel for who the significantly sized vendors are across these markets combined. Inevitably the figures shown need to be treated with some caution – in the absence of any published and verified pan-European data these are Kinetic’s own best approximations. But the overall landscape they present is a realistic one. Only a few vendors can currently claim any real scale across these markets combined, but the five biggest represent over 80% of the OOH market within these most common environments.

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Individual country data is shown in more detail later in this guide, but the top spending sectors across all media overwhelmingly come from the following: Retail, Motors, Food, Finance, Entertainment & Leisure, and Media.

*Includes Belgium, France, Germany, Ireland, Italy, The Netherlands, Spain, & UK

The relative order changes from market to market but these sectors would generally populate a top five almost anywhere in Western Europe, with Retail topping most rankings as the biggest spending sector across all media combined.

If we look at similar rankings for OOH spend, we find many of the same sectors populating the top five, although Retail tops far fewer of these rankings, generally ranking in 3rd or 4th place. The most notable difference is the absence of Telecoms as a major overall media advertiser, but it frequently appears within the OOH rankings. Clearly there is an inherent empathy between mobile phones and a medium that reaches consumers whilst they are on the move. Entertainment & Leisure also tends to represent a greater proportion of OOH spend than for all media, whilst Drink appears in several of the top 5s for OOH but in few of the All Media rankings. In most markets the Drink category includes non-alcoholic beverages and is not restricted to alcohol alone.

Sectors - % share of spend year to date (Source: UK, All Media, Nielson 2013)

Automotive 9.2% Industry and serv. 11.3% Entertainment 13.0% FMCG 21.3%

Media 8.9% Healthcare 7.5% Financial 6.3% Durables 5.9% Telecom 5.9% Distribution 5.4% Clothing and Access. 3.4%

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DOOH in Airports

Airports As an Out of Home environment airport advertising is worthy of separate consideration on several counts; By definition its audience and core advertiser constituency is predominantly international rather than domestic, (although this does vary in degree – e.g. Heathrow handles mainly international flights whilst London City schedules more domestic flights). Air travellers are not only subject to extended ‘dwell time’ but are often actively seeking distraction or engagement during their waiting time. Airports are retail environments in their own right.

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The number of air journeys to and from European airports is still growing – ACI data suggests numbers rose by c. 5% in the first half of 2014 alone. This places the development of further airport capacity on the agenda of so many of Europe’s major cities. The airport operators face a situation where the combined influence of growing passenger numbers, governmental policy and taxation, and rising fuel costs are all placing pressure on their margins. As a result the emphasis for airport operators for the foreseeable future will be on maximising operational efficiency, improving customer satisfaction and ultimately maximising revenues. Minimising costs through greater digital implementation may well lead to more ‘self-service’ airports. In turn

this should result in reduced dwelltime at “stress points”, and more time to shop, eat and drink. The rise of the airport as a destination in itself rather than a means to an end is a significant one too – the plans for Zurich’s airport development provide an interesting example of how this may look for the consumer. http://www. thecircle.ch/

Air travellers are not only subject to extended ‘dwell time’ but are often actively seeking distraction or engagement during their waiting time

In this more technology laden environment digital OOH finds a natural home and the pace of digitisation is accelerating. Approximately 30% of the Out of Home inventory at Heathrow is already digitised, but the fully digitised airport portfolio is already on its way in cities such as Copenhagen. Airport expenditure is included within the ‘transport’ figures in several of the individual market's information within this survey. But we can confidently expect to see an expansion in digital inventory in these important travel hubs across the continent and with it an increasing emphasis on more sophisticated audience measurement and segmentation. In short an already complex market is not only likely to grow bigger

but also to command increasingly specialised knowledge and understanding. If you would like more information or insight into the airport marketplace across Europe or the globe, Kinetic’s specialist division Aviator will be happy to help. Contact details are included on page 6.

30%

of the Out of Home inventory at Heathrow is already digitised

Airports are retail environments in their own right

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Kinetic comment We have tried to apply consistency across all of the markets covered within this section of the report, although we acknowledge that the extent and nature of the data available varies slightly from one country to another. In order to minimise repetition we have tried to keep the commentary for each market to a minimum, so there is a need to make some general observations that apply to the majority of the markets here. In all but a few markets OOH revenue is predicted to grow over the next 12 – 18 months, along with its share of the overall media pie. The exceptions to this tend to be in those countries still recovering from general economic recession and still undergoing fiscal hardships through dramatic reductions in both government and consumer spending.

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In all markets DOOH is showing significant annual growth, albeit from relatively low bases. Although we can’t always demonstrate this within the available data, anecdotally much of this digital investment is taking place in ‘enclosed’ environments and / or those with longer consumer dwell time, e.g. transport hubs, malls, and in-store.

Est Kinetic market share by country (Source: Kinetic local offices)

In most markets a few vendors tend to control significant proportions of the OOH inventory with the remainder divided up amongst a myriad of far smaller players. The top spending advertisers and client sectors also tend to represent a larger proportion of the total OOH market than they do of the overall media landscape. This indicates that in most markets OOH currently attracts a slightly narrower range of advertisers, many of whom tend to be disproportionately heavy investors in OOH in comparison to their other media activity. This Year Next Year data – The revenue figures shown are net of commission and production and so may appear lower than the gross figures quoted from other local and international sources.

Belgium *1 2013 data *2 Poster group / Poster Conseil - Kinetic affiliate *3 Kinetic does not exist anymore in Spain, GroupM backoffice took over parts of the process (planning and admin), agencies are handling the negotiations

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23. Belgium - OOH revenue and % of all media spend

Belgium - Share of spend by major environment

Belgium - No. of panels by major environment

Belgium - Growth of DOOH revenue

(Source: GroupM TYNY)

(Source: Kinetic estimates/CIM/Nielsen)

(Source: Kinetic estimates)

(Source: Kinetic estimates/CIM/Nielsen)

Belgium - Est share of revenue by major vendor*

Belgium - Est share of Street Furniture revenue by major vendor*

Belgium - Est share of Roadside revenue by major vendor*

Belgium - Est share of Transport revenue by major vendor*

*Source: Kinetic estimates 2014

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Belgium - Est share of Retail revenue by major vendor 2014 (Source: Kinetic estimate)

Belgium - Top 10 OOH advertisers by spend 2013 (Source: Cim/Nielsen/Kinetic)

Audience measurement tools

Belgium - Top 5 advertiser sectors in OOH by spend 2013 (Source: Kinetic estimate)

Cim Traffic Affichage is the industry standard audience measurement system, produced by Pointlogic. It is updated twice a year and available to agencies and specialists. CTA is an overall campaign evaluation tool that reports coverage, frequency and

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impact data against a range of standard demographics including education and profession as well as age, class, and sex. Whilst it doesn’t incorporate any quality metrics such as angle of display or visibility it does cover 90% of all six sheets and between 65 - 100% of other major formats.

Budget Guidelines National Campaign Format type

Panel size (cm)

No. of Panels

Campaign duration

Approx. Cost

6 sheets

175 x 118

2800

1 week

€140,000

3 formats

232 x 314

750

2 weeks

€180,000

Main cities only campaign Format type

Panel size (cm)

No. of Panels

Campaign duration

Approx. Cost

6 sheets

176 x 118

1797

1 week

€110,000

96 sheets

297 x 1160

80

2 weeks

€110,000

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Kinetic comment GroupM’s TYNY predicts a 5% fall in OOH revenue following a 2.4% increase in 2013. However it also predicts a return to growth, with OOH revenues expected to grow by 2% in 2015. Although we anticipate DOOH representing c. 4% of total OOH revenue across the major environments, this will represent a three-fold increase on 2012. As in other markets the majority of DOOH development has so far been in Transport and Retail environments.

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France

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29. France - OOH revenue & % of all media spend (Source: GroupM TYNY)

France - No. of panels by major environment (Source: Kinetic estimate)

France - Share of spend by major environment (Source: Kinetic estimate)

France - Growth of DOOH revenue in major formats (Source: Kinetic estimate)

France - Share of major format revenues by major vendor 2014*

France - Est share of Transport revenue by major vendor 2014*

France - Est share of Roadside revenue by major vendor 2014*

France - Est share of Street Furniture Revenue by major vendor 2014*

*Source: Kinetic estimate

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France - Share of retail revenue by major vendor (Source: Kinetic estimate)

Budget Guidelines

France - Top 10 OOH advertisers by spend 2013 (Source: AC Nielsen)

National Campaign

Audience measurement tools APE – MOOHV (2015) Produced by Affimetrie, this is a quarterly data source that allows overall campaign evaluations but which is not site-specific. It evaluates coverage, frequency, and OTS based on 52 different audience demographic combinations.

France - Top 5 spending advertiser categories in OOH 2013* (Source: Kinetic estimate)

Available to specialist OOH agencies, it covers c. 78% of all OOH inventory and also allows evaluations against quality metrics such as visibility, lighting, angle to traffic flow, etc. *These sectors represented a little over 60% of all OOH spend in 2013 according to our estimates.

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Mobigare An annual source of site specific data covering OOH sites in railway stations, it therefore covers only c. 5% of total OOH inventory. The data is produced by Simaris. Available to specialist agencies, it provides audience data against 28 audiences and allows overall campaign evaluation of cover and frequency, but doesn’t include any quality metrics.

Simaris Malls This is another output from Simaris that covers OOH in Malls and represents c. 1% of total inventory. It provides the same level and nature of data as the Mobigare survey described above.

Format type

Panel size

No. of Panels

Campaign duration

Approx. Cost

CLP

2m2

14,814

1 week

€835,450

CLB

8m2

7,607

1 week

€796,322

Billboards

12m2

6,955

1 week

€487,141

Mix

2m2 & 8m2

6,300

1 week

€641,912

54 cities > 100,000 population Format type

Panel size

No. of Panels

Campaign duration

Approx. Cost

CLP

2m2

6,930

1 week

€486,243

CLB

8m2

2810

1 week

€267,787

Billboards

12m2

5014

1 week

€462,225

Mix

2m2 & 8m2

5,735

1 week

€581,350

Format

Panel size

No. of Panels

Campaign duration

Approx Cost

CLP

2

2m

500

1 week

€151,549

CLB

8m2

350

1 week

€109,729

Billboards

12m2

825

1 weeks

€130,010

Mix

2m2 & 8m2

308

1 week

€92,281

Greater Paris only

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Kinetic comment After showing a contraction of 1.6% in 2013, OOH revenue is predicted to remain static for 2014 but to show 0.5% growth next year, according to GroupM’s TYNY. However, OOH is a significant medium in France, accounting for more than 10% of all media spend every year since 2008 and predicted to account for 10.7% in 2015. As in so many markets spend on DOOH has more than doubled since 2012 and is predicted to exceed ₏100,000,000 next year, when it is anticipated there will be approaching 3,500 digital panels in transport and retail locations alone.

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Germany

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Germany - OOH revenue and share of all media spend (Source: GroupM TYNY)

Germany - Share of spend by major environment 2014 (Source: Plakativ Daten & Fakten)

Germany - No. of panels by major environment 2014 (Source: Plakativ Daten & Fakten)

Street Furniture is not identified as a format whilst spend in Retail environments is recorded at below 0.1% of the total.

Germany - Share of major environment revenues by vendor 2014 (Source: Kinetic estimate)

Germany - Top advertisers by OOH spend 2013 €m (Source: AC Nielsen Gmbh)

Germany - Top 5 spending advertiser categories in OOH 2013 €m (Source: AC Nielsen Gmbh)

No panel number data is available for either Street Furniture or Retail, and these figures exclude any digital inventory. No digital expenditure is available for anything but Transport environments, where 2014 spend is likely to total €96.5m, rising to c. €115m next year. No data is available for vendor volume or share by environment for Germany

These five categories represented c. 48% of all OOH spend in major formats during 2013.

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Audience measurement tools maPlakat Published by Arbeitsgemeinschaft Media Analyse (agma), this twice yearly data is available to agma members (agencies, advertisers, and vendors). Covering c. 94% of all OOH inventory maPlakat allows both site specific and overall campaign evaluation. It provides both quantatitive analysis (reach, frequency, GRPs, etc.) and quality measurements such as lighting, environment, and angle to the road. It does not yet include digital signage.

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Ambient Media Analyse (AMA) Published with varying frequency by Fachverband Ambient Media, AMA is available only to its membership of vendors and specialist OOH agencies. It captures only major vendor’s inventory and the last update was in 2013. Like maPlakat it provides both individual site evaluation as well as overall campaign delivery estimates of cover, frequency, and GRPs but does not include any qualitative data.

Budget Guidelines National Campaign – top 112 cities based on coverage

Main Cities – Top 15 cities only

Option 1

Option 1

Format type

Panel size (cm)

No. of Panels

Campaign duration

Approx. Cost

Format type (cm)

Panel size

No. of Panels

Campaign duration

Approx. Cost

Mega light

18/1

2,863

1 week

€1,100,000

Mega light

18/1

1,675

1 week

€800,000

Billboard

18/1

2,396

10/11 days

€470,000

Billboard

18/1

952

10/11 days

€200,000

Option 2

Option 2 Format type

Panel size (cm)

No. of Panels

Campaign duration

Approx. Cost

Format type (cm)

Panel size

No. of Panels

Campaign duration

Approx. Cost

CLP

4/1

21,216

1 week

€1,950,00

CLP

4/1

9,393

1 week

€1,287,000

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Kinetic comment According to GroupM’s TYNY data Germany saw a spectacular annual increase in OOH spend of 16.6% in 2013 and is predicted to achieve a further 35% growth in 2014 and 1.5% in 2015. As in most other markets OOH revenue growth has come at a time when press spend is diminishing; in Germany TYNY data predicts consumer print revenues contracting by over 20% between 2012 and the end of 2015.

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Ireland

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41. Ireland - OOH revenue and % of all media spend (Source: GroupM TYNY)

Ireland - Share of spend by major environment (Source: Kinetic estimate)

(Source: Kinetic estimate)

Ireland - Growth of DOOH revenue in major formats (â‚Źm)

Ireland - Est revenue share by vendor 2014

Ireland - Est share of Roadside revenue by vendor 2014

Ireland - Est share of Street Furniture revenue by vendor 2014

Ireland - Est share of Transport revenue by vendor 2014

(Source: Kinetic estimate)

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Ireland - No of panels by major environment

Source: Kinetic estimates

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43. Ireland - Est share of Retail revenue by vendor 2014 (Source: Kinetic estimate)

Budget Guidelines

Ireland - Top 10 OOH advertisers by spend 2013 (€m) (Source: AC Nielsen)

Audience measurement tools JNOR / CAFAS

Ireland - Top 5 advertisers sectors in OOH by spend 2013 (€m) (Source: AC Nielsen)

The top five advertiser sectors represent over 70% of the total OOH spend within Ireland.

Produced by Outdoor Media Association (Ireland) each quarter and covering c. 98% of all OOH inventory. Available to vendors, agencies and specialists. Providing campaign coverage and frequency estimates against a range of major demographics. Includes quality metrics such as lighting, angle to traffic, visibility, clutter etc., plus average audience flow per week

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FIT

Bespoke in-house tool unique to Kinetic Ireland providing recommended frequency level for campaigns. Data is analysed on a campaign by campaign basis taking account of the market, the message and other specifically relevant media factors.

RESEARCHER

Post campaign research conducted on-street throughout the year measuring campaign recall (unprompted & prompted), liking, message delivery and call to action.

National Campaign

*T Sides only available in Dublin

Format type

Panel size

No. of Panels

Campaign duration

Approx. Cost

Billboards

48 sheets

150

2 weeks

€90,000

Bus Shelters

6 sheets

275

2 weeks

€78,375

PoS

6 Sheets

150

2 weeks

€24,000

Transport

Bus T Sides*

75

2 weeks

€28,500

Main cities only

*T Sides only available in Dublin

Format type (cm)

Panel size

No. of Panels

Campaign duration

Approx. Cost

Billboards

48 sheets

50

2 weeks

€47,500

Bus Shelters

6 sheets

125

2 weeks

€35,625

PoS

6 Sheets

75

2 weeks

€12,000

Transport

Bus T Sides*

75

2 weeks

€28,500

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Kinetic comment OOH recorded an 8.1% increase in annualised revenue in 2013 and TYNY currently predicts 3.% growth in 2014 and 1.7% in 2015. As elsewhere DOOH is currently a relatively small and geographically concentrated part of the overall OOH market, but has already shown rapid growth from a low starting base. By the end of 2015 we would expect DOOH to represent in excess of 10% of all OOH revenue in Ireland.

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Italy

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47. Italy - OOH revenue and % of all media spend (Source: GroupM TYNY)

Italy - No of panels by major environment*2 (Source: Kinetic and Vendor estimates)

Italy - Share of spend by major environment*1 (Source: Kinetic and Vendor estimates)

*1The mega sites included are usually banners erected on scaffolding around

Italy - Growth of DOOH revenue in Roadside, Transport & Retail (â‚Źm)

Italy - Est share of major environment revenues by vendor 2014

Italy - Est share of Street Furniture revenue by major vendor 2014

Italy - Est share of Roadside revenue by major vendor 2014

(Source: Kinetic estimates/CIM/Nielsen)

construction sites or building renovations; some of the apparent decline in Roadside spend may therefore be partially accounted for by the growth in Mega Site spend. *2We do not have reliable data for Retail or Mega Site panel numbers, but their absence from this chart partially explains the apparent decline in the overall

(Source: Kinetic & vendor estimates)

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49.

Italy - Est share of Transport revenue by major vendor 2014 (Source: Kinetic & Vendor estimates)

Budget Guidelines

Italy - Top 5 OOH advertiser sectors 2013 (€m) (Source: AC Nielsen)

Audience measurement tools AudiOutdoor

Italy - Est share of 2014 Mega Sites revenue by major vendor (Source: Kinetic & Vendor estimates)

Italy - Top OOH advertisers by spend 2013 (€m) (Source: AC Nielsen)

Syndicated and available to specialists and agencies, AudiOutdoor covers c. 20% of established (non-digital) OOH, allowing overall campaign evaluation of these elements rather than individual site analysis. Updated on a quarterly basis it provides quantitative data, (reach, frequency, and GRPs), but no qualitative metrics.

Towards research Audience Measurement TRAM is an ad hoc piece of research produced by IGP Decaux and covers only bus and underground inventory,

Shaping the moving world

although 95% of the available signage in these environments is included. The last updated data was released in 2013. Available to agencies and specialists it provides overall campaign evaluation metrics against adults, men, and women plus 6 age ranges.

Kinetic Integrated Evaluating System (Kinetic IES) A bespoke Kinetic system only available to Kinetic offices, the data is ad hoc but last updated in 2014. It provides estimates covering 100% of all traditional OOH in most environments and 95% of bus and underground inventory.

National Campaign (60 cities) Format type

Panel size (cm)

No. of Panels

Campaign duration

Approx. Cost

Billboards

600 & 400 x 300

2,350

2 weeks

€1,177,000

Main cities (10 cities) Format type

Panel size (cm)

No. of Panels

Campaign duration

Approx. Cost

Street furniture

120 x 140 & 180 x 200

2,451

2 weeks

€847,000

Main cities (4 cities) Format type (cm)

Panel size

No. of Panels

Campaign duration

Approx. Cost

Stree furniture

120 x 140 & 180 x 200

1,127

2 weeks

€567,000

Transit

300 x 70

960

2 weeks

€204,000

Digital

Various

129

2 weeks

€302,000

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Kinetic comment Although OOH spend in Italy has declined significantly over recent years, this has to be viewed in the context of declines of 12% and 10% respectively in overall media spend in 2012 and 2013 as the Italian economy struggled to emerge from the recession created by the 2008 financial crisis. GroupM’s TYNY predicted a 6.5% decline in OOH spend in 2014, against a predicted decline in overall media spend of 2.1%. In itself this overall figure would be far worse were it not for an estimated 6.1% increase in interaction spending. 2015 is predicted to see a return to revenue growth in OOH of 1.4%.

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As in so many of these markets DOOH spend has grown consistently over recent years and within the major environments discussed within this document is predicted to reach â‚Ź28m in 2015, and increase of over 28% since 2012.

Spain

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53. Spain - OOH revenue and % of all media spend (Source: GroupM TYNY)

Spain - Growth of DOOH revenue in major formats (â‚Źm) (Source: Kinetic estimates)

Spain - Est. share of OOH spend by vendor (Source: Kinetic estimates)

Spain - Share of OOH spend by major environments (Source: Kinetic estimates)

The Spanish economy has undergone extreme difficulties resulting from a severe squeeze on public expenditure and high unemployment. Spend across all media declined by almost 16% during 2012 whilst OOH share of spend was (and remains) higher than in most other markets and has also suffered, although a return to growth is predicted for both this year and next.

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Only around 50% of sites are audited within the audience measurement systems so that panel numbers are not available for all formats. However, the number of both Roadside and Street Furniture panels that are audited has remained fairly constant over recent years at 40,000 and 80,000 sites respectively.

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Spain - Top 5 spending advertiser categories in OOH 2013 It is not possible to break this data down into shares of each of the major environments separately for Spain. Details of overall sector spend are not available either, but the top five spending categories in order of size are as follows:

Telecoms & Internet Motors

Retail & Restaurants Culture, Education, and Media Communications Beauty & Hygiene Spend estimates are available at individual advertiser level.

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55.

Spain - Top 10 OOH advertisers by spend 2013 (€m) (Source: Kinetic)

Audience measurement tools Geomex

Produced by Cuende Infometrics this survey is available to media agencies, specialists, and vendors and some of the data is updated as frequently as weekly. It covers between 50%-60% of all OOH sites, but these represent c. 80% of all OOH spend. It is used mainly for campaign evaluation but also provides some individual site scoring. It reports on both quantitive metrics, (cover & frequency), as well as some qualitative metrics such as angle to traffic.

Estudio General de Medios

A general media resource reporting across media types it is produced in 3 waves each year by Asociación de Investigación Medios de Comunicación and is available to media owners and media agencies. It reports on overall coverage by medium and environment and so is very generic and provides no detail for OOH campaign delivery and only few quality metrics concerning the environment.

Budget Guidelines National campaign Format type

Panel size (cm)

No. of Panels

Campaign duration

Approx. Cost**

Street furniture

120 x 176

3,300

1 week

€270,000

Airports

120 x 176 scrollers

225

1 month

€140,000

Billboards

800 x 300

1,000

2 weeks

€110,000

Backlits

800 x 300

250

1 month

€190,000

Digital Network* (general)

Various

4,400

2 weeks

€130,000

Digital Network* (malls)

Various

800

2 weeks

€100,000

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56. Main cities (Top 5 – Madrid, Barcelona, Valencia, Seville, Zaragoza) Format type

Panel size (cm)

No. of Panels

Campaign duration

Approx. Cost**

Street furniture

120 x 176

2,000

1 week

€230,000

Subway (Madrid & Barcelona)

120 x 176

410

1 week

€50,000

Airports

Various

100

1 month

€120,000

Billboards

800 x 300

500

2 weeks

€70,000

Backlits

800 x 300

180

1 month

€130,000

Digital Network* (general)

Various

4,200

2 weeks

€125,000

Digital Network* (malls)

Various

500

2 weeks

€70,000

Kinetic comment Shaping the moving world

As we have already observed the Spanish economy is still struggling to find its way back to pre-2008 levels and as a consequence has seen a fall in both OOH and overall media spend over recent years (overall media spend downsized 58% vs. 2007). However, the latest TYNY projections predict 2% growth in OOH spend in

*The digital network is for GroupM/Kinetic clients exclusively **The costs are not rate card prices, but approx. negotiation costs

Spain in 2014 and a further year-on-year uplift of 3% in 2015.

Switzerland

DOOH spend has shown uninterrupted growth since 2012 and represents a higher proportion of OOH overall spend than almost all other markets covered within this report. Our own estimates suggest it could represent c. 9.5% of total OOH spend in Spain by the end of 2015.

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59.

Switzerland - OOH revenue & share of all media spend (Source: GroupM TYNY)

Switzerland - Est share of 2014 revenue by major vendor (Source: Kinetic estimate)

Switzerland - Growth of DOOH revenue (€m) (Source: Mediafocus)

Switzerland - Top 5 advertiser sectors in OOH by spend 2013 (€m) (Source: Mediafocus) These top 5 advertiser sectors represent just under 50% of the total OOH spend

Switzerland - Top 10 advertisers by OOH spend 2013 (€m) (Source: Mediafocus)

OOH’s share of all media spend is far higher in Switzerland than in any of the other markets we have examined in this guide. However, there are no reliable data available as to how this spend is split across the major environments we have used elsewhere, or how this splits by major vendor. The share of all OOH revenue accounted for by the major vendors is as shown above.

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Audience measurement tools SPR+

Produced by licensed agencies APG & CCS in addition to the OOH specialists, SPR+ provides high level, overall campaign evaluation but does not include any quality metrics in its reporting.

Providing standard quantitive data, i.e. reach, frequency, and GRPs against a range of demographics but the data is updated infrequently – some site data is only updated every 2 -3 years.

Kinetic comment Shaping the moving world

National Campaign ‘Big26’ cities / ‘Couronne Cities’ / ‘Big 10’ Format type

Panel size (cm)

No. of Panels

Campaign duration

F12

268.5 x 128

2,160 (F12 & F200L)

14 days

F200L

119 x 170

7 days

Main Cities Only (‘Big 5 Couronne Cities’) Format type

Panel size (cm)

No. of Panels

Campaign duration

F12

268.5 x 128

2,160 (F12 & F200L)

14 days

F200L

119 x 170

7 days

The Netherlands

that OOH revenues are already at a far higher GroupM’s data predicts a fall in OOH spend in Switzerland in 2014 of 8.65% but level in terms of share than in any other market in a return to growth with a 4.5% increase in Western Europe. 2015. These figures have to be put into the broader context of declining spend on all media channels except for TV and Internet this year, plus the fact

As elsewhere, DOOH continues to grow but is expected to represent only c. 4% of all OOH spend by the end of 2015.

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63.

The Netherlands - OOH revenue and % of all media spend (Source: GroupM TYNY)

The Netherlands - No. of panels by major environment (Source: Kinetic estimates)

The Netherlands - Share of spend by major environment (Source: Nielson/CAFAS)

The Netherlands - Growth of DOOH revenue (â‚Źm) (Source: Nielson/CAFAS)

The Netherlands - Est share of OOH spend by vendor*

The Netherlands - Est share of Street Furniture revenue by vendor*

The Netherlands - Est share of Roadside revenue by Vendor*

The Netherlands - Est share Transport revenue by Vendor*

(Source: Nielsen)

(Source: Kinetic estimates)

(Source: Kinetic estimates)

(Source: Kinetic estimates)

*2014

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65.

The Netherlands - Est share of Retail revenue by vendor 2014 (Source: Kinetic estimates)

The Netherlands - Est share of other format revenue by vendor 2014 (Source: Kinetic estimates)

The Netherlands - Top 5 advertiser sectors in OOH by spend 2013 (â‚Źm) The Netherlands - Top 10 OOH advertisers by spend 2013 (â‚Źm) (Source: Nielson)

(Source: Nielsen)

The top five advertiser sectors represent over 65% of the total OOH spend

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Budget Guidelines

Audience measurement tools CAFAS

Produced by Simon Cooper and available to agencies and specialists, individual site data is updated on a quarterly basis (although other data has not been updated in the last 3 years). Some individual sites can be separately evaluated but its main function is to provide overall campaign evaluations.

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Cafas reports against quantitative metrics such as cover and average frequency, both nationally and for 30 separate regions and can report on almost 250 demographic target groups. It also incorporates some qualitative scoring, e.g. visibility, lighting, angle of display, etc.

National Campaign Format type

Panel size (ft)

No. of Panels

Campaign duration

Approx. Cost

CLP

118.5 x 175

5,700

1 week

€290,000

CLP

118.5 x 175

4,025

1 week

€200,000

Billboard

332 x 236

485

2 weeks

€160,000

CLP

118.5 x 175

4,650

1 week

€340,000

CLP

118.5 x 175

4,579

1 week

€290,000

§Main Cities Only Format type

Panel size (ft)

No. of Panels

Campaign duration

Approx. Cost

CLP

118.5 x 175

450

1 week

€40,000

CLP + Spectacular

118.5 x 175

400

1 week

€40,000

96 sheets

118.5 x 175

469

1 week

€35,000

Bus T sides

118.5 x 175

1,291

1 week

€70,000

Bus supersides

118.5 x 175

200

2 weeks

€45,800

Kinetic comment GroupM TYNY reports a 4.9% annual dip in OOH spend during 2013 but predicts 1.9% revenue growth for in 2014 and an increase of 2.5% for 2015 in The Netherlands. DOOH is still in its relative infancy but shows rapid growth – it is predicted to reach c. €15m this year, an increase of over 300% on 2012 levels which takes its share of overall OOH revenue to around 3% of the total. Vendors however predict 2015 will see stabilisation and possibly a decline.

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69.

United Kingdom

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71. UK - OOH revenue and % of all media spend

UK - Share of spend by major environment

UK - Est share of format revenue by major vendor

UK - Est share of Street Furniture revenue by major vendor

UK - No. of panels by major environment

UK - Growth of DOOH revenue in major formats (â‚Źm)

UK - Est share of Roadside revenue by major vendor

UK - Est share of Transport revenue by major vendor

(Source: GroupM TYNY)

(Source: Kinetic estimates)

(Source: Kinetic estimates)

(Source: Kinetic estimates)

(Source: Kinetic estimates 2014)

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73. UK - Est share of Retail revenue by vendor 2014 (Source: Kinetic estimates)

Budget Guidelines

UK - Top 10 OOH advertisers by spend 2013 (€m) (Source: Nielsen)

Audience measurement tools ROUTE

UK - Top 5 spending advertiser sectors in OOH by spend 2013 (Source: Nielson)

Funded by vendors and most specialist OOH agencies, Route is a comprehensive GPS based survey that covers c. 95% of existing OOH inventory. It uses individual frame ID’s, audience count data and travel survey data based on GPS. It is added to quarterly and updated annually.

Both quantitative and qualitative metrics are included in the data, which is primarily used for campaign evaluation (coverage, frequency, GRPs) against a huge range of target audiences based on demographic combinations.

National Campaign Format type

Panel size (ft)

6 sheets

No. of Panels

Campaign duration

Approx. Cost

5,000

2 weeks

€720,000

48 sheets

20 x 10

2,000

2 weeks

€696,000

96 sheets

40 x 10

400

2 weeks

€384,000

Bus T sides

2,345

2 weeks

€600,000

Bus supersides

4,100

2 weeks

€442,800

No. of Panels

Campaign duration

Approx. Cost

5,000

2 weeks

€720,000

Main Cities Only Format type

Panel size (ft)

6 sheets 48 sheets

20 x 10

2,000

2 weeks

€696,000

96 sheets

40 x 10

400

2 weeks

€384,000

Bus T sides

2,345

2 weeks

€600,000

Bus supersides

4,100

2 weeks

€442,800

These top five advertiser sectors represented almost 60% of the total UK OOH spend in 2013.

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75.

Kinetic comment OOH received a huge boost from the London 2012 Olympics, enjoying almost 10% revenue growth that year. Subsequent growth is therefore coming off a relatively high annualised base but is still expected to achieve 2.4% growth in 2014 and 4% in 2015. The UK is certainly one of the most developed OOH markets in terms of DOOH and 2015 is expected to see these revenues record more than 50% growth from 2012. DOOH represents a far higher share of the total OOH pie than in most other global markets, projected to represent 24% of all revenue in 2014 and 27% in 2015.

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European Guide to Out of Home 24-28 Bloomsbury Way London WC1A 2SL 0207 150 6000 @kineticwwUK


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