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Prepared By: Insight Department

October 2012

POSTERSCOPE MEDIA DIGEST

Contents

Executive Summary

Economic Review & Forecast: 2012

Media Category Spend H1 2011 vs. H1 2012

Mobile Insight - Ofcom & Google Playbook

Insight Tools

Media Owner Insight Projects 2012

Google ‘Think Quarterly’ Article: Data Stories

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Executive Summary

- The Outdoor Media Centre announced that outdoor revenues grew 9.9% year on year in Q2 2012 to £229m (£208m in 2011).

- Figures from the Advertising Association and Warc showed an increase of 1.1% in overall ad spend during the first quarter of 2012. Expenditure is expected to improve over the year, reaching an overall growth rate of 2.5% in 2012, with forecasts of a further rise of 4.4% in 2013 (at current prices).

- The top three fastest expanding OOH sectors in H1 2012 were Retail (+17% YOY), Technology (+15% YOY), and Toiletries/Cosmetics (+15% YOY).

- The UK is currently in the midst of a double dip recession with Q2 GDP contracting by 0.4%. UK GDP growth for 2012 has been pegged at -0.3% and 1% for 2013 (independent averages / HM Treasury). This context really demonstrates how impressive the positive growth of OOH revenue is.

- Two-fifths of UK adults are now smartphone users. As expected the majority are using these when OOH and in multiple locations. More than half (57%) of smartphone users claim to have used their handset when out shopping.

- There are several new insight tools and presentations. These include new mobile research focusing particularly on NFC, information on how OOH works with TV, and new ways to analyse OOH speed of cover from Geography of Time and Touchpoints.

- Both CBS Outdoor and JCDecaux have been utilising their research panels in recent months and new category insights are highlighted. Similarly both have commissioned recent research on Mobile that compliments Posterscope’s Real World Interactors project.

- Primesight have released a large number of tools (Primelife) that they use to help better plan and evaluate OOH campaigns. Similarly Clear Channel have revamped their long running Clear Channel Research Monitor (CCRM) to incorporate the measurement of other media alongside OOH campaigns.

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Economic Review and Forecast: 2012

UK Adspend:

The Outdoor Media Centre announced that outdoor revenues grew 9.9% year on year in Quarter 2 to £229m (£208m in 2011). Major events such as the Diamond Jubilee and the Euro Championships contributed to that growth, as have the 2012 Games. This put OOH growth at 6.3% for H1 2012.

All major environments (transport, roadside, retail and leisure) were up year on year, as were all the major site types such as 6 sheets, 48 sheets, 96 sheets, buses, and taxis. Revenues in the digital sector continued to grow 27%, as media owners continued to invest, transforming sites in the best locations to digital.

Figures from the Advertising Association and Warc showed an increase of 1.1% in overall ad spend during the first quarter of 2012. Expenditure is expected to improve over the year, reaching an overall growth rate of 2.5% in 2012, with forecasts of a further rise of 4.4% in 2013 (at current prices).

Tim Lefroy, chief executive of the Advertising Association said: “In the face of global economic uncertainty, UK advertising holds a steady course. Evidence shows that advertising invigorates GDP growth, so a healthy ad market is good news for the whole economy, not just advertisers.”

Although marketing budgets have been marginally revised down since Q1 projections, the positive growth should still be recognised as an optimistic sign in light of weakening business confidence and economic difficulties.

UK, Europe & Global Growth:

The UK is currently in the midst of a double dip recession with Q2 GDP contracting by 0.4%. The agencies cited increased uncertainty regarding the likely negative impact of growth on fiscal consolidation and the risks of adverse shocks from the euro area. UK GDP growth for 2012 has been pegged at -0.3% and 1% for 2013 (independent averages/ HM Treasury).

Difficulties in fiscal consolidation were exacerbated by the banking sectors woes. The current process of bank deleveraging is adversely affecting balance sheets and could potentially trigger another credit crunch if quantitative easing fails to keep up. Anti-bank sentiment has been worsened still further due to the LIBOR fallout. Collectively these issues have damaged domestic banks’ reputations, but more crucially, their ability to lend.

Similarly, financial market sentiment has too deteriorated over the review period. Vulnerabilities associated with the indebtedness and competitiveness of several euro-area economies has continued this change. Although political developments in Italy and Greece have alleviated some worries, euro-zone tensions continue to be a concern in the near future.

Although the IMF revised up slightly its forecast for 2012 world GDP growth to 3.5% in April 2012, later survey indicators pointed to a weaker outlook. US growth prospects softened towards the end of 2012 H1, although they remained stronger than in Europe. Growth prospects also weakened in some major emerging economies, such as Brazil, China and India.

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Media & Category Spend H1 2011 vs. H1 2012

Referring to Ebiquity as the source of data, the changes in advertising expenditure between H1 2011 and H1 2012 can be measured (Figure 2.0). NB. All of the data coming out of Ebiquity are only indications of real revenue and are not definitive. The difference between the NMR and OMC figures is made up of such things as direct sales, barter sales, production inclusive deals, excluded formats e.g. taxis. Official OOH billings are up 9.9% in Q2 2012.

Four out of eight media channels have seen a drop in expenditure in H1 2012, with OOH maintaining a growth (1%).

Figure 2.0: Media Spend H1 2011 vs. H1 2012

OOH’s YOY growth figure certainly flies in the face of the anecdotal evidence provided by ‘business confidence’ survey respondents. The survey showed how total marketing budgets had been revised down for the first time in a year. Almost 17% of survey respondents reported a downward revision to spend during the second quarter of 2012. This is matched with a drop in Q2 business confidence. (IPA Bellwether Report - July 2012).

Further to this, it should be recognised that OOH’s media share has grown too. Despite the increase share of TV; OOH share has improved to 6.3% (Figure 2.1).

Figure 2.1: Media Share H1 2011 vs. H1 2012

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Category Spend:

In relation to individual categories, the overall trend is not in-line with media expenditure; there has been a wide range of growths and declines among the different categories (Figure 2.2). The top three fastest expanding OOH sectors were Retail (+17% YOY), Technology (+15% YOY) and Toiletries/Cosmetics (+15% YOY).

Figure 2.2: OOH Category Spend H1 2011 vs. H1 2012

Figure 2.3: OOH Category Spend H1 2011 vs. H1 2012

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Mobile Insight - Ofcom & Google Playbook

• Two-fifths of UK adults are now smartphone users. Take-up has risen from 27% in 2011 to 39% in Q1 2012. Take-up levels are highest among younger age groups (16-24s and 25-34s) and those in ABC1 households.

• Over four in ten smartphone users say their phone is more important for accessing the internet than any other device. Smartphones are increasingly being used in different ways in consumers’ lives – to help them shop (57%), check-in on a social network (30%), tweet (23%) and watch TV/film content (22%).

• The value of UK retail sales transacted online was £2.6bn in February 2012. This represents year-on-year growth for the e-commerce sector of 30%. The high street still accounts for the majority of revenues, but its growth has been much less.

• Growth in smartphone take-up resulted in increasing use of mobile data in the year to Q1 2012. The average time spent using mobile data services was 2.1 hours a month in 2011, 25 minutes per month more than in 2010 (+25%), while the volume of data consumed more than doubled in the 18 months to January 2012.

• A third of people aged 16 to 24 live in homes where mobiles were the sole form of telephony in Q1 2012, more than twice the 15% average across all adults. The figure among 25-34 year olds was also high, with over a quarter (26%) living in a mobile-only household.

• Consumers are using their smartphones to help them shop (Figure 2.4). More than half (57%) of smartphone users claim to have used their handset in some way when out shopping. This includes simple things such as taking a photo of a product (31%), to making online price comparisons (25%), acquiring more product information by scanning bar codes (21%), reading product reviews online (19%), and researching product features (19%).

Figure 2.4: Use of Smartphones when shopping

Took a picture of the productCompared a price to a price online

Scanned a bar code to get more product info

Read product reviews onlineResearched product features online

Used phone to redeem a mobile coupon

Searched for coupons or deals online

Smartphone users (%)

Any

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Source: Ofcom omnibus research, March 2012Q: 8b Which, if any of the following activities have you ever done on your smartphone while out shopping?

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• When asked where smartphone users are accessing the internet it is clear that a significant number are using this OOH (81%) – See Figure 2.5

Figure 2.5: Location of Mobile Internet Use

• Particularly focusing on OOH, we can also see that Mobile Internet is used in multiple locations - See Figure 2.6 below.

Figure 2.6 Location of Mobile Internet use when OOH

Proportion of mobile data users

Proportion of total mentions

Source: Ofcom research, Q1 2012Base: All adults aged 16+ who access the internet on their mobile phone

Source: Ofcom research, Q1 2012Base: All adults aged 16+ who use mobile broadband outside the home

• Roughly a third of all web searches have local intent. 85% of smartphone users have searched for local information and 81% have taken an action as a result. Click on the following links to access the full reports:

Ofcom Communications Market Report 2012

The Mobile Playbook (Google)

Always use outside the home, 6%

Always use in the home, 6%

Mainly use in the home, 12%

Use equally inside and outside the home, 60%

Mainly use outside the home, 15%

At someone else’s house, 17%

At work, 14%

Other, 1%

When travelling, 25%

Indoor public spaces, 22%

Outdoors, 21%

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Insight Tools

Geography of Time / IPA Touchpoints

Geography of Time (GoT) is a project of two parts. A survey of 3,500 respondents from 5 major GB conurbations to gain insight into city life. Secondly, a PDA diary which recorded 1,200 diary days of consumers’ activities. The PDA diary is similar to Touchpoints and analysing the two data sources can create some very interesting insight. Also the data from both surveys support each other, adding confidence in the results.

Figure 2.7 and 2.8 below demonstrate how media consumption for OOH & TV accumulates during the day. From an OOH perspective we see that 50% of all those who travel have done so by 9am on a weekday (GoT). However it is not until 4.30pm on a weekday that 50% of those who watch Commercial TV have done so (Touchpoints). Therefore if brand messages (particularly offers) are intended to be seen by the target consumer on a specific day, OOH is ideal for this.

Figure 2.7 – Speed of cover for OOH

Source: GoT

Source: Touchpoints 2012

Commercial TV viewing is continuous throughout the day. 50% of consumers who watch commercial TV have done so by 4.30pm on a weekday but earlier at weekends

50% of consumers who travel have done so by 9am on a weekday and 11am on a weekend

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Figure 2.8 – Speed of cover for Commercial TV

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Smartphone Real World Interactors

This was a joint UK/US research project with Clear Channel conducted in late Q1 2012. The research provides great insight into Smartphone users and their awareness, usage, perception and likely adoption of Mobile Technologies such as Mobile Bluetooth, QR Codes, Visual Search, Augmented Reality and particularly focusing on NFC.

Figure 2.9 below demonstrates that consumers are most likely to interact with posters using NFC for “functional” reasons with 92% stating they would be likely to interact for at least one functional use. The top functions were perceived as “downloading vouchers/special offers” (85%), “Getting Local Information/Directions” (84%) and “Price Comparisons” (77%).

Figure 2.9 – Reasons consumers would interact with a poster using NFC

A full presentation can be found on the following link: Smartphone Real World Interactors

LINKING TO GAMING CONTENT 34%

EASILY ACCESSING CONTENT/WEB PAGES 76%

INTERACTING JUST FOR FUN 67%

LIKING/FOLLOWING A BRAND 45%

SHARING CONTENT WITH SOMEONE 59%

CHECKING IN 52%

ENTERING A COMPETITION 57%

BUYING SOMETHING 57%

ADDING EVENTS TO YOUR CALENDAR 66%

DOWNLOADING AN APP 69%

CAPTURING CONTACT DETAILS 66%

ACT AS A SHORTCUT 69%

COMPARING PRICES 77%

GETTING LOCATION INFORMATION/DIRECTIONS 84%

DOWNLOADING VOUCHERS/SPECIAL OFFERS 85%

69%PLAYFUL

72%SOCIAL

92%FUNCTIONAL

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We are often asked how OOH can support other media. Using Touchpoints data, along with a collection of case studies and other research sources, we can help demonstrate the benefits of using OOH with other media.

Click on the following link for a presentation on how OOH and TV complement each other:

OOH & TV: Complementary Media

Role of OOH in the Media Mix

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Media Owner Insight Projects 2012

CBS Outdoor have been running their new online research panel named work, shop, play over the last few months. During this time they have gained insight on various product categories including Motors, Gaming, Alcohol and Beauty. They have also created a “State of the Nation” report on consumers’ perceptions on the economy from mid 2012. For example below is a breakdown of what consumers’ state they are spending their income on.

To find out more about work.shop.play please give your Posterscope contact a call or email Russell Smither directly at russell.smither@posterscope.com

Interactive Europe

CBS Outdoor recently released the results of a major pan European quantitative and qualitative study of 9,000 Europeans across 6 markets. This explored digital interactivity in the context of OOH whilst understanding both current and future behaviours.

Please click on the following link to the full presentation: CBS Outdoor Interactive Europe

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29% Mortgage/Rent

24% Household Bills 19% Groceries

5% Savings

-£ ?7% Debts 9% Leisure 7% Other

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Clear Channel Research Monitor (CCRM) has evolved. In a multi-media world, advertisers need to understand the role played by each media as part of their campaign. CCRM now encompasses all media running alongside an OOH campaign, so it will provide insights into OOH within the context of other media. Clear Channel will collaborate with advertisers and their agency to provide insights which evaluate OOH as part of the multi-media campaign, whilst still demonstrating OOH’s contribution and unique reach in delivering a valuable and desirable audience as part of the communications mix.

If you or your client is interested in finding out more about CCRM, please give your Posterscope contact a call or email Russell Smither directly at russell.smither@posterscope.com

Primesight have released a large number of tools (Primelife) that they use to help better plan and evaluate OOH campaigns.

These tools include “Primeresponse” which provides insightful evaluation on measurements such as EPOS data, and uplifts in web traffic using Experian Hitwise data. Other tools include “Primemobile” which evaluates consumers’ awareness and attitudes towards OOH campaigns using Smartphone mobile research, and “Primedesign” which is a creative testing tool.

For more information on these tools amongst others please give your Posterscope contact a call or email Russell Smither directly at russell.smither@posterscope.com

You can also visit Primesight’s website at http://www.primesight.co.uk/tools

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Connected Commuter Panel

JCDecaux’s mobile panel of 1,500 rail commuters from London/South East has continued to generate Insight across a wide number of categories. These include presentations on Finance, Motors, Travel, Fashion, Cosmetics, Impulse, Airlines, Home Entertainment and Insurance.

To find out more about JCDecaux’s Connected Commuter panel, please give your Posterscope contact a call or email Russell Smither directly at russell.smither@posterscope.com

NFC/QR Code Reading Test

JCDecaux recently completed a 6 sheet mobile test in Reading with 13 advertisers. This generated insight on actual interactions with NFC/QR codes as well as consumer perceptions towards interacting with OOH using NFC.

In total over the 4 week test there were 6,000 Interactions by over 3,000 individual consumers. The proportion of these being by NFC was 10% over the full 4 week period but grew to 15% in the final 4th week. There are also interesting insights on the time of day and location of interactions. Interactions peaked during the evening commuter period, as well as most interactions taking place in the town centre. There are also learnings about consumer perceptions towards NFC which are very positive and promising for the future.

To access the full presentation please click on the following link: JCDecaux NFC and QR Code Reading Test

This insight also supports and complements our own Smartphone Real World Interactors research, which provides a broader context for NFC and mobile technologies.

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POSTERSCOPE MEDIA DIGEST - October 2012 15

Data Stories

Google’s Cole Nussbaumer offers a primer on creative data visualization, the merger of brains and beauty that has taken the marketing world by storm.

WORDS BY Cole Nussbaumer

I have a goal in life: To rid the world of bad PowerPoint slides. We’ve all sat through meetings, struggling to stay awake during presentations filled with cheesy stock images, confusing bar graphs, and pie chart after pie chart. This needn’t be so. Even the driest content can come to life – if it’s presented creatively.

At Google, I teach everyone from marketers to engineers some basic principles of data visualization that help them turn numbers into compelling visual stories.

Presenting data creatively can make numbers seem more human and turn statistics into stories. By ‘humanizing’ data we can make those numbers – and hence the people and companies behind them – more transparent.

Here are a few of the most resonant lessons that I teach in ‘Data Visualization 101’ at Google. Consider this your cheat sheet to becoming a more creative data storyteller:

http://www.thinkwithgoogle.co.uk/quarterly/creativity/data-stories.html

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