The out-of-home space is facing a shake-out as smaller companies get bought up by larger players and the space becomes more consolidated. This is good news for the industry, historically dominated by a few large players with hundreds – if not thousands – of others scattered across the country, making it difficult to make ad buys that reach scale.
New formats also become available almost daily, giving advertisers increased opportunities to reach their target markets in innovative ways.
With all this in mind, Mediaweek put together its Out-of-Home Hot List to help media buyers and advertisers pinpoint the top out-of-home media companies. The winners were based on answers to a few questions: does the company have staying power? Is the business helping to grow or evolve the medium? Is it helping consolidate the space?
The top 10 list, in descending order:
1. National CineMedia
This is the larger of the two cinema advertising companies, with 16,800 screens, and has been expanding its offerings with interactive lobby displays. It ran its first 3D ad in April, and its three largest chains are adding 3D systems in an additional 14,000 theaters. Revenue grew 1.5% in 2009, while national ad revenue was up 6.1%.
2. Zoom Media and Marketing
Zoom made six acquisitions last year, building out its social, fitness and family networks across 10,000 venues. The company has run digital ad programs for more than 100 clients in the last year, including campaigns for AT&T, CBS, Coca-Cola, HBO, Johnson & Johnson, NBC, Paramount Pictures, Showtime, Turner Networks, Walt Disney, Verizon and Wal-Mart. Zoom says revenue has grown at a compound rate of 35% annually.
JiWire reaches Wi-Fi users when they access hot spots, and, with exclusive relationships with about 40 Wi-Fi operators to reach more than 30,000 hot spots, has no competition. The company doubled its ad impressions last year and forecasts 200% growth in 2010. Revenue jumped 150% in Q110 over the same quarter last year.
4. Captivate Network
Captivate dominates the space in elevator screen advertising, with networks in 20 markets – 15 of which are in the top 20 DMAs. Advertisers include Sprint, General Motors, ESPN, FedEx and Amtrak. Estimated revenue in 2009 was around $30 million, and the company expects double-digit revenue growth for the first half of this year.
This is the second-largest cinema rep firm and reaches across 2,500 theaters. The company recently ran its first 3D ad (for Wrigley’s), its first live ad (for Daffy’s, in New York’s Ziegfeld Theatre), and the first use of interactive, on-screen polling, for Sprint. It is also offering interactive polling stations in lobbies of more than 500 theaters, and other new formats across some of its other theater lobbies. 3D screen capabilities are now in 1,500 theaters. Revenue grew 4% in 2009, and 2010 is pacing at 25% higher than last year.
6. RMG Networks
RMG, previously Danoo, operates 60,000 interactive screens reaching 25 million viewers a month. It offers advertisers networks in healthclubs in 100 markets, an in-flight net in JetBlue, Frontier, Continental, and Delta, and a network in ShopRite pharmacies, among other venues. The company says it grew 1,000% in the last year (much of that growth due to acquisitions).
7. Monster Media
Monster offers large-format, gesture-based interactive technology in spaces like malls, airports, storefronts, subway tunnels and kiosks, while CBS Outdoor, JCDecaux, and Clear Channel Outdoor use Monster Media’s interactive technology exclusively. Revenue in 2009 was up 40%, with profit up almost 1,000%, the company says.
8. CBS Outdoor
CBS Outdoor has been expanding in the realm of small digital screens, nabbing nearly 8,000 digital displays, 4,300 in GameStops stores, for a total reach of 24 million each month. CBS Outdoor Americas saw revenue in 2009 slip 15% to $1.11 billion.
9. Clear Channel Outdoor
CCO, the largest traditional outdoor company, has added 472 digital billboards in 33 of the nation’s largest markets in recent years, with 120 added in the last year alone. Digital led the company’s revenue growth in 2009; total revenue was down 13%. CCO added 156 new digital clients in Q1.
The company operates a restaurant entertainment network in some of the country’s biggest chains, including Wendy’s, Denny’s, Arby’s, Hardee’s and McDonald’s. It increased distribution from 244 restaurants to 1,074 in 2009, and will add another 7,000 over the next four years per existing contracts. The company says 2010 ad revenue will be 16 times what it was last year. The network reaches 14.1 million each month.
The Mediaweek article includes more details about each company here.