FEPE Out of Home News 7th July 2016

FEPE Out of Home News 7th July 2016



FEPE Inspiring Out of Home Advertising

By Matthew Dearden, President FEPE International

I am proud and honoured to be your new President of FEPE, and wanted to write to you in this first newsletter since I took over.

I’ll start by thanking my predecessor Antonio Vincenti for his successful presidency. Antonio has shown vision, courage, energy and determination, and has devoted a great deal of time to ensuring the success of FEPE. I know I speak for our members when I offer him immense gratitude – thank you Antonio!

Over the last year the FEPE Board has put considerable effort into considering and refining the role of FEPE. We are here to promote out-of-home advertising, and to support our members, national associations and others in doing so. Our medium is fortunate to have many strong operators and associations; FEPE’s role is to amplify rather than duplicate their great work.

Out-of-home is an inspiring medium that connects brands with people. The purpose of FEPE is, similarly, inspiring those who work in and around out-of-home media. To celebrate this we are updating the FEPE logo to incorporate our belief that out-of-home is inspirational, and FEPE’s role in inspiring all of us: “FEPE Inspiring Out of Home Advertising”.

Our focus this year is to inspire debate and energy on four key questions facing us:

1) Confidently making our case for out-of-home media in a digital world.

2) Taking the digital revolution out of home.

3) Reclaiming our creative crown.

4) Making OoH easy to plan, buy and deliver.

The FEPE team will be working to these priorities, and will be sharing plans to address them across the year.

As we enter the next digital revolution, there has never been a more exciting time to work in our medium. I’m enthusiastic about the role FEPE can play, working with each of you, to achieve our full potential. Thank you for your membership and participation in FEPE, and entrusting me with the Presidency – together, we will enjoy success on the road ahead.

UK: Rejected remain campaign posters revealed by ad agencies

We are still emotionally engaged in campaign, says M&C Saatchi boss, who says dealing with cross-party committee structure was doomed to fail

They are the remain campaign billboards that never were. Adverts put forward by agencies working for Britain Stronger in Europe – and subsequently rejected by campaign chiefs – began to emerge on Thursday as the referendum postmortem gathered pace.

Agency chiefs criticised the remain campaign for a lack of focus and leadership. The images included work from agencies Saatchi & Saatchi and M&C Saatchi, two of the companies working for the remain campaign.

M&C Saatchi’s worldwide chief executive, Moray MacLennan, said: “We never normally release work that we produced on behalf of a client but that hasn’t run. “But this time is different.

We are still emotionally engaged, the issue is – and will remain – of vital importance and it might help to air some of these ideas,” he told Campaign.

Full article here

Spain: Clear Channel Outdoor awarded the tender to manage Barcelona’s street furniture

Barcelona’s City Council has awarded Clear Channel Outdoor the contract to manage the city’s street furniture for the next two years.

- Clear Channel’s Spanish business will manage 1,419 bus shelters, 20 digital screens, 61 toilets, 432 user information screens, and other items of street furniture in Barcelona.

- Clear Channel has also won the Catalan Parliament's tender to manage 1,500 bus shelters in 509 Catalan municipalities.

- Together with its recent successful bid to manage Madrid’s street furniture for the next 12 years, these concessions mean Clear Channel has significantly strengthened its presence in the Spanish market.

The contract covers maintenance of bus shelters, public information services, user information screens, bus platforms, municipal noticeboards, toilets, citizens’ advertising pillars and free standing totem signs. These services are funded by the advertising revenue generated by the operation of the 3,000 poster sites and 20 digital screens included in the tender. Barcelona City Council will also receive an additional annual fee of €15.5 million, a higher figure than it received from the previous contract holder.

Potentially lasting up to 4 years, the new contract includes maintenance of the different items of street furniture, as well as an annual investment of €1 million to improve them.

At least 10% of the workers employed to fulfil the contract will be people who have encountered particular difficulties in entering the labour market.

William Eccleshare, Chairman & CEO, Clear Channel International, commented on the news: “Clear Channel International continues to execute its growth strategy by investing in the great cities of the world. Spain is an important market for us, with Barcelona being one of the country’s jewels. We are delighted to have the opportunity to grow our business in this market and look forward to working with Barcelona’s city council on the modernisation of its outdoor advertising spaces.”

Bill Derrenger, Vice-Chairman of Clear Channel for Southern Europe, emphasised that: “This project shows our firm and determined commitment to Barcelona and strengthens our company’s position in the Spanish market.”

UK: AA Combines Visual and Audio Advertising for Mass Audience Reach in New, Nationwide Campaign

JCDecaux, The Automobile Association (AA) and GTN UK have launched a fantastic new campaign combining Out-of-Home (OOH) and Radio to reach the right audience at the right time. The campaign delivers premium large format digital sites along key arterials that will be synced with GTN’s Network Drive package to deliver high-impact messages at a huge scale during key AM and PM commuter slots.

While driving to and from work, commuters will hear AA Radio advertising about the useful services they offer such as lost key assistance as well as using their app to help find the cheapest fuel. The message will then be reiterated using JCDecaux’s premium large format digital sites to leave a lasting impression.

The campaign, planned and booked with JCDecaux by Starcom and Posterscope, launches on 4th July for four weeks, followed by another two-week burst in August.

Part of a national campaign incorporating backlights, billboards and roadside 6-sheets - the digital element will produce over 61m impacts, of which 69% of those impacts will be car owners (persons directly responsible for breakdown cover and car care. Route data).

Mark Bucknell, Director of Product & Client Development at JCDecaux UK said: “By combining visual and audio advertising, the AA will be able to reach a vast amount of affluent commuters and family audiences travelling in and out of cities nationwide. This exciting collaboration between OOH and Radio will undoubtedly produce a heightened level of interaction and attention.”

Chris Harris, Group Marketing Director at The Automobile Association (AA), said: “We’re very excited to be working with JCDecaux and using OOH and Radio together to be able to enhance our campaign. This is a brilliant way of implementing a cross-platform strategy to reach the right audience, at the right time.”

John Quinn, Chief Operating Operator at GTN UK, said: “The combination of our Network Drive package delivering critical information across the whole UK commercial radio network & JCDecaux’s premium large format digital sites provides the ideal advertising environment that ensures The AA can deliver their messaging in a contextual environment at key commuting times. A true cross-media experience.

UK: Why add Twitter to OOH?

We like to think of Twitter as something that compliments and adds to the strengths of other media - a bridge not an island. This is particularly true for Out of Home (OOH). It enjoys a symbiotic relationship with, and has much in common with Twitter.

OOH and Twitter both attract a valuable, predominantly urban audience who are regularly on the go. They lend themselves to being consumed at speed and essentially show people what’s happening now - on the streets and in the world. Twitter’s audience is curious about what’s happening in the world and are in ‘discovery mode’ when they come to the platform.

Twitter users are effectively saying ‘look at that’ to each other throughout the day and (fuelled by the Retweet and user generosity) this helps the best, most interesting, surprising or amusing stuff get shared instantly and widely on Twitter - whatever that may be.

Full article here

UK: Digital creative contest opens for entries

The digital creative competition run by digital out-of-home specialist Ocean and Campaign opens this week, with entries from across the globe eligible for the first time.

This is the seventh year of the contest which judges digital out-of-home ad concepts yet to be made. Ocean helps realise the winning ads and showcases them on their networks in the UK - and this year, in Hong Kong and New York.

Previous winners include WCRS' "Look at me" ad for Womens Aid and MicroLoans' "Pennies for Life" by DLKW Lowe (now Mullen Lowe), which both went on to win Cannes Gold Lions. The free-to-enter competition is open until August 26.

There are two categories: the best interactive digital out-of-home concept and the best creative technique. Finalists' work will be judged by two panels of industry experts and winners will be revealed at an awards ceremony at the Imax in London on October 13. In each category, first prize is £100,000 in media space, second prize is £75,000 and third prize is £50,000.

Full story here

Switzerland: APG|SGA continues to market the public transport hotspots in the Lausanne region

The Lausanne region public transport companies (tl) have awarded three lots for commercial advertising spaces in and on vehicles and at the attractive métro m1 and m2 stations with effect from 1 January 2017. APG|SGA has won two promising lots in a demanding competitive process. From 1 January 2017, APG|SGA Traffic will be responsible for marketing all the tl’s interior analogue and digital spaces (all buses and métro).

"We are absolutely delighted to receive this vote of confidence from tl, which affirms our successful activities in the area of indoor formats", says Daniel Flück, Head of APG|SGA Traffic.

The digital TrafficMediaScreens launched last year are already well established on the market and enjoy a high level of acceptance by passengers. The successful national products with hanging displays and window banners are still available, of course.

Full story here

UK: Marketers put the brakes on ad spend in wake of Brexit vote

Marketers are either pulling or pausing advertising spend just a week after the Brexit vote as they look to insulate themselves from the growing uncertainty about the future. That incertitude is sucking confidence out of brands and it’s difficult for them to keep calm. Marketers know how to mitigate risk in the wake of 2008’s financial crisis but have been stunned by a Brexit they thought was impossible.

Their biggest concern now is for the economy and agencies are already getting twitchy that their clients will use the immediate economical and political uncertainties to slash spend in the medium to long-term.

Fear preys on fear

What’s driving that fear from brands is the threat of a recession. A third of Brits plan to cut back on big purchases, while half will increase their savings following the landmark decision[CC1] , both of which could quicken a recession and consequently years of soggy growth for brands. It amounts to a confidence game with the economy that companies find themselves in, unsure (yet) whether to stick or twist when it comes to protecting their brands.

Full article here

Ireland: JCDecaux Celebrates 15 years in Ireland

JCDecaux is celebrating its 15th anniversary in Ireland, having first entered the Irish outdoor marketplace in 1999 with the acquisition of the billboard company David Allen. Already a well-established brand in the rest of Europe, JCDecaux had a reputation for quality and was recognised as the inventor of the ‘advertising in exchange for public service’ model when it introduced the first bus shelters incorporating advertising in 1964.

The JCDecaux brand began appearing on-street across the 32 counties in 2001 with the rebranding and upgrading of their billboard portfolio with modern Norman Foster-designed mouldings. The business in Ireland has changed significantly since 2001 and in 2004 JCDecaux won the first LUAS advertising contract and retained it in 2007 and 2015. In 2008 Dublin City Council appointed the company to provide amenities for the city, including the successful Coca-Cola Zero dublinbikes scheme in return for advertising displays.

This bike share model evolved directly from the advertising in exchange for public service model first developed by JCDecaux in 1964. With over 15 million journeys since launch Coca-Cola Zero dublinbikes is recognised as one of the most successful bike share schemes world-wide.

Full story here


USA: Digital displays bring neighborhood-specific apartment listings to New York City

StreetEasy, a New York City real estate marketplace, recently launched its first real estate advertising campaign on LinkNYC. Its objective is to bring neighborhood-specific apartment listings that are currently for rent on StreetEasy directly to New York City's streets and the thousands of New Yorkers who are searching for apartments during the peak summer season.

Different listings rotate each day, and StreetEasy will update apartment listings via LinkNYC's location and context-aware capabilities and API, aligning apartment locations with individual Links. The deployment is being paid for entirely through advertising. Intersection is the company behind LinkNYC.

It creates digital interfaces for transit, museums, retail, workplaces and cities. The company is owned by a group of investors led by Sidewalk Labs, an Alphabet (Google) company. Intersection is the managing partner of CityBridge, the joint venture that created LinkNYC.

Full story here

USA: Oliverio says outdoor values are 9-12X cashflow

Insider talked with Gabe Oliverio of outdoor investment banking firm Johnsen Fretty about outdoor values. Sounds to Insider like now is a good time to sell your company.

Insider is seeing values of 5-6 times run rate revenue and 8-12 times run rate cashflow in the outdoor advertising market. What’s your view?

Very generally speaking, revenue multiples seem about right, though I’m always very hesitant to think of valuation in terms of revenue multiples. A great billboard in Indy might have an 18% lease cost, while a great billboard in New York might have 55% cost. Should their revenue multiples be comparable? Billboard cash flow multiples for premier inventory/plants gravitate toward the 9-12x range. Again, this a very general comment. Often times when we represent a seller, we position metrics so they take into account things like digital conversions and/or future revenue bookings. Things like that can change a cash flow metric dramatically.

Any trends in acquisitions during the second quarter?

It is still a very active market for acquisitions, which we see continuing for the foreseeable future. In any spot in the U.S. buyers are very aggressive for quality assets.



Australia: Out-of-Home juggernaut continues with Q2 revenue growth

Once again, the Out-of-Home industry has exceeded previous year’s results with Q2 2016 posting an increase of 18% on net revenue year-on-year with $184.4 million, up from $156.2 million* for the same time last year. These results reflect a continuous growth trend in 2016, following on from the all-time high revenue growth at the end of 2015, when revenue increased by 17%* over 2014.

Monthly results have continued to exceed expectations with the industry posting an increase of 12.1% for April and 20.9% for May year-on-year. June figures show an increase of 20.6% year-on-year, with net revenue of $65.3 million. These increases continue to reflect across all categories: roadside billboards; roadside other (street furniture and transit); transport (airports) and retail/lifestyle/other. Digital revenue is sitting at 37.3% of total net revenue year-to-date, which is an increase over the recorded 23.1% for the same period last year. “OOH audiences continue to grow in a time when other traditional media channel audiences decline, as consumers increasingly demand to be served advertising on their terms. Research shows that people are more alert when outside of the home and therefore more primed to receive advertising messages. This is something that advertisers are embracing – OOH’s ability to reach their audiences,” said Charmaine Moldrich, CEO of the Outdoor Media Association.

“There is no question that OOH is the channel to watch for the foreseeable future. Technology is enhancing the medium in ways that give it an edge over other media channels, such as short lead times, day parting, location based targeting, social amplification, multiple sequential messaging, thermal/weather triggers and countdown mechanics,” Moldrich continued.

“But what makes OOH most powerful, is the combination of these attributes together with the bold creative canvas and scalability of the medium using traditional faces,” she concluded.

Category figures second quarter 2016

• Roadside Billboards (over and under 25 square metres) $69.4 million

• Roadside Other (street furniture, bus/tram externals, small format) $53.3 million

• Transport (including airports) $32.0 million

• Retail, Lifestyle and Other^ $29.7 million

Category figures second quarter 2015

• Roadside Billboards (over and under 25 square metres) $53.0 million

• Roadside Other (street furniture, taxis, bus/tram externals, small format) $46.8 million

• Transport (including airports) $29.3million

• Retail, Lifestyle and Other^ $27.2 million

*Previous years figures have been adjusted to reflect changes in OMA membership to allow for direct comparisons in revenue year-on-year.

^Reported in this category are: shopping centre panels, as well as all place-based digital signs including office media – covering signs in lifts and office buildings, cafe panels, and digital screens in doctors surgeries and medical centres.

Note: Figures may not add to total due to rounding.


Nigeria: Lona installs biggest billboard in Africa

An outdoor advertising firm in Nigeria, Lona Global Resources made history by installing the biggest outdoor advertising billboard in Africa in Abuja. Located in the ever-busy Abuja Airport Road by Lugbe interchange, the board measures 30 by 90 meters, the Managing Director of the company, Idoko Kingsley Ilonah, has said.

Also at the site, Lona is providing a park where people can enjoy Wi-Fi services in collaboration with MTN Nigeria Communications Limited at discounted rate amongst other recreational services.

This idea, Ilonah said, is to go beyond business and give immediate social benefits to the community as part of their Corporate Social Responsibility. “Apart from our Bill Board, the beautification of the site with a park is adding value to the Federal Capital Territory scenery,” he said.

Full story here


India: Gionee appoints Rapport as its OOH partner

Gionee, a leading global manufacturer of mobile devices has consolidated its entire out-of-home (OOH) mandate with Rapport India, which is the OOH arm of media agency conglomerate IPG Mediabrands. Rapport India is a full service Out-Of-Home (OOH) agency and has the OOH AOR (agency on record) mandate for Hindustan Unilever, Amazon, Samsonite, Tata Docomo and another 23 other marquee clients.

Nomit Joshi, AGM, Gionee, said, “We are extremely happy to announce our OOH partnership with Rapport. We were impressed with the science that Rapport brought to the medium through strategy and planning, transparency, monitoring and measurement. We are confident that our association with Rapport will be productive especially with the proprietary tools they own that will go on to heighten the impact of the brand creatives.”

Full story here

South Korea: Korea to Get Times Square-Style Billboards

Korea has given the green light to massive digital billboards like the ones in New York's Times Square and Piccadilly Circus in London.

The government has eased regulations on digital advertising and permitted the designation of downtown spots where anything goes, according to the Interior Ministry on Monday. It hopes the spots can serve as landmarks and tourism attractions. Times Square attracts 50 million tourists a year who stare transfixed at its massive LED billboards. A few seconds of advertising cost millions of dollars. Regional governments can submit their nominated spots to the ministry for review.

Candidate sites are major commercial areas such as Myeong-dong and the COEX building in Samseong-dong in Seoul and the Centum City shopping mall in Busan. The ministry expects that the billboard market will generate economic benefits worth W8.1 trillion and added value worth W3.6 trillion, and create some 59,000 new jobs over the next five years (US$1=W1,148).