neo advertising - ise dooh presentation
DESCRIPTION
Presentation from Christian Vaglio-Giors, CEO of Neo Media Group, during the ISE 2009TRANSCRIPT
Neo AdvertisingChristian Vaglio-Giors, CEO
February 2nd 2009
The Net without FrontiersAn opportunity for DOOH consolidation
The Net without Frontiers
• Swiss DOOH Group founded in 2003
• End to end DOOH solution
• POS focus
• Europe, North America and Asia
• Privately funded
• 100’000 screens in inventory
• EUR 25m turnover
• Aggressive development strategy
• More at www.neomediagroup.com
Neo Advertising
The Net without Frontiers
The Net without Frontiers
• DOOH is among the fastest growing ad-supported media– Double digit growth
– USD 1bn in ad revenues in 2008
• Benefits from media fragmentation– OOH the only true mass media left
• Benefits from new lifestyle– Medium engaging consumer
• Strong POS vertical (vs. POW and POT)– In-store media grows faster than the Internet
• Measurable– From impression-based to impact-based
• Non-intrusive and effective
DOOH market - Overview
The Net without Frontiers
DOOH market – Forecasts
• CAGR of 18% to 2013 (NSR, eMarketers)
• Retail networks dominate
• Europe and Asia grow faster
The Net without Frontiers
• In North America– Acquisition of Captivate by Gannett (03/2004)– Acquisition of PRN by Thomson (07/2005)– Acquisition of DAN Media by Neo (10/2006)– Acquisition of SignStorey by CBS (09/2007)– Acquisition of ClubCom by Zoom Media (09/2008)– Acquisition of AccentHealth by M/C Venture Partners and Bank of America Capital (09/2008)
• In Asia– Acquisition of Target Media by Focus Media (01/2006)– Acquisition of CGEN by Focus Media (12/2007)– Acquisition of Focus Media DOOH by Sina Co (12/2008)
• In Europe– Acquisition of Librium by Dutch Telegraf (09/2005)– Acquisition of POSTV by Neo (10/2007)– Acquisition of Avanti by Neo (07/2008)– Acquisition of Mediapixel by Futuramedia (07/2008)– Acquisition of Q-Vision by Neo (09/2008)– Merger of SubTV and Gym Screen Media (01/2009)
Major M&A deals to date
The Net without Frontiers
• Media habits have changed
• Growing penetration but too fragmented
• Increasing ROE as technology prices drop
• Need to digitalize media offer, to offer more flexibility
• Digital media convergence
• POS or the last Eldorado
• Strong synergies & economies of scale
Consolidation signals
The Net without Frontiers
• Overall DOOH industry still destroys value
• Impact of a general economic downturn
• DOOH is still in its infancy
• Market size
• Heterogeneous channels
• Loss + Loss = Profit ?
Consolidation limits
The Net without Frontiers
• Operators level - National level first, international then– Synergies
– Need for critical mass and scale
– Too diversified
– International campaigns
• Marketing & Sales level - Must happen– Easier media buy
– Heterogeneous offer
Consolidation – Overview
The Net without Frontiers
Consolidation candidates• Mainstream media
– Television
• Alternative media– Outdoor (traditional, alternative)
– Online
• Agencies– Advertising
– Media
• Financial institutions
• Others– Telco Co
– CE
The Net without Frontiers
Consolidation – when will it happen• 2009 - Lots of pioneer players quit DOOH
• 2009 - North America and Europe intensify DOOH consolidation
• 2009 - China terminates DOOH consolidation
• 2010 - First major cross borders deals
• 2011 - Few global players dominate DOOH market
• 2012 – DOOH represents 50% of the OOH market
The Net without Frontiers
Conclusions• DOOH is under the spotlights
• Significant synergies and economies of scale
• Established global media groups must enter DOOH
• Traditional OOH players will be challenged in their backyards
• Television best positioned to lead the consolidation
• Online best positioned to dominate DOOH Sales & Marketing
The Net without Frontiers
Thank you