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Posterwatch OOH Advertising Market Review Q1 2017Republic of Ireland

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Street Scape ............................................................................................................................................. 3Who's up and who's down in Q1 2017.

In the Main Frame ............................................................................................................................................. 8The low down on Digital OOH in Q1 2017.

The Big Five ............................................................................................................................................. 13The top campaigns for cycles 1 - 7 (Q1)

RE//Format ............................................................................................................................................. 16A look back on the developments on formats in Q1 2017

OOH Market ReviewQ1 2017 | Cycles 1 – 7 2nd January 2017 - 9th April 2017

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1. STREET SCAPE

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A growth level of 3% is how we estimate the Out of Home (OOH) market performed for Q1 2017. This is another encouraging statistic for the sector, considering that Q1 2016 was a particularly strong period in 2016. This growth level follows an estimated 7% growth for the entire year 2016. Growth in the market is coming from a wide array of categories and advertisers but an interesting emerging trend for the market is the formats, networks and media owners where this additional spend is being felt most markedly.

Media Owners such as DAA (airport advertising), Adtower, Orbscreen and Wide Eye Outdoor have all significantly added to their portfolio over the past twelve months. This investment has been almost entirely on new Digital OOH opportunities. Advertisers have responded positively to these new and expanded networks and media owners such as those mentioned above are certainly making inroads into a market previously much more dominated by a small group of larger media owners. It will be interesting to see how these and others develop the market further, particularly in the medium to long term. Although the relatively small market share of these media owners is growing, it’s important to also note the large majority of OOH spend is still with market leading brands such as JCDecaux, Exterion Media and Clear Channel.

On the advertiser front, its also the case that traditionally strong OOH supporters continue to make up the lion’s share of the top spending brands and products. Indeed, Diageo, McDonald’s and AIB Group are the three largest OOH advertisers in 2017 to date. Vodafone and Unilever showed large increases in spend also, compared to Q1 2016. However, perhaps the most interesting of movers among the top spending advertisers is

Premier Lotteries Ireland. Primarily because of the extent and nature of Digital OOH used in their OOH strategy. Perhaps more than any other advertiser to date, the lottery has embraced Digital formats and their potential for flexible copy change. Among the top fifteen advertisers, ten have increased their OOH investment in Q1 2017.

Finance, Food and Tourism & Travel were the top three categories of advertisers in the first three months of the year. Some of the principal advertisers driving this were AIB, Glanbia and Aer Lingus.

The largest display value for any individual campaign was for mytaxi, which rebranded from Hailo in cycle 7. The taxi app used a plethora of formats including large format 48 Sheets, 96 Sheets and Metropoles. 6 Sheets, Digital OOH and ambient choices were also part of the campaign, which registered a display value of more than €500k.

Census 2016 results show an overall population increase of almost 4% since 2011. We will be integrating the new figures into our system as more detailed data emerges over the course of 2017. Its also a big year for public transport in the capital with the launch of Luas cross city. Use of public transport is on the rise, as are numbers of car journeys. Employment figures are also going in the right direction. So, definitely some encouraging aspects in growing the OOH audience along with the ever evolving product offering from the OOH channel.

Colum Harmon, Marketing Director, PML Group

Steady growth in Q1 for OOH

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Top 15 OOH Advertisers Q1 20171 2 3 4

5 6 7 8

9 10

151413

1211

+4.5% -21.1% +73.1% +146.3%

-3.3% +908.2% -15.5% +96.8%

+4.5% +14.9% -50.0% +42.2%

+71.1% +306.4% +127.3%

SoV: 1.83%

SoV: 1.63% SoV: 1.61%

SoV: 2.18% SoV: 2.16% SoV: 2.05%

SoV: 1.88% SoV: 1.83%

SoV: 4.33% SoV: 3.38% SoV: 3.38% SoV: 2.54%

SoV: 2.26%

SoV: 1.69%

SoV: 1.68%

(% up/down display value compared to Q1 2016)

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Top 10 OOH Categories Q1 20171 2 3

4 5 6

9

10

7 8

SoV: 9.5% SoV: 7.8% SoV: 7.2%

SoV: 6.9% SoV: 6.2% SoV: 6.2%

SoV: 5.5%

SoV: 5.4%

SoV: 6.1% SoV: 5.7%

+29.9% +38.4% +31.9%

-2.9% -12.2% -2.2%

-9.3%

-15.7%

-27.0% -4.0%

(% up/down display value compared to Q1 2016)

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Top 5 Advertisers breakdown by environment Q1 2017

Leisure Roadside Retail Travel

Diageo

McDonald’s

AIB Group

Premier Lotteries Ireland

Mondeléz

79.0% 10.0% 10.3%

42.6% 12.2% 45.1%

76.1%

44.5% 46.9%

12.3% 11.6%

35.6% 57.0%

0% 20% 40% 60% 80% 100%

Top 5 Advertisers breakdown by location Q1 20170% 20% 40% 60% 80% 100%

DublinDublin Plus

CorkOther Main CityRest of ROI

75.9%

72.0%

6.5%6.1%

6.8%

7.8%

79.6% 7.3%

8.9% 7.8%

73.0%

61.7% 8.9% 7.6% 15.0%

9.8%

McDonald’s

AIB Group

Premier Lotteries Ireland

Mondeléz

Diageo

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2. IN THE MAIN FRAME

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Digital OOH centre

Digital Out of Home (DOOH) advertising is undoubtedly the success story of the OOH sector in recent years. Consistent growth, an expanding universe of options, and flexibility, both in display and in buying, have made it a highly desirable form of advertising. Its share of the OOH market is now almost 14%, and rising. By the end of 2017, we expect this to hit 15%.

Originally it was almost exclusively a retail proposition, with screens in shopping malls the birthplace of the channel in this country. It remains the case that most digital options are in the shopping environment (65%) but more and more are appearing in transport and leisure settings. It’s a sector of the market supplied by a diverse collection of media owners. Wide Eye Media have recently launched a division called Wide Eye Outdoor which incorporates their digital offering in cinemas, retail and pub locations. Adtower, Magmal, Visualise and Orbscreen are all offering hundreds of screens in desirable nationwide locations. The rapid pace of change in the market makes for exciting and interesting times and it’s been great to see advertisers match the enthusiasm of the media owners in investing in DOOH.

By far in Q1 2017, the biggest advertiser on DOOH formats was Premier Lotteries Ireland. The advertiser used DOOH to promote jackpot draws for the domestic lottery and the Euromillions draw. It is an ideal channel for the brand, allowing

for quick copy change to reflect days of draws and changing jackpot totals. Remarkably, Premier Lotteries invested almost three times as much as any other DOOH advertiser in Q1. Warner Bros. was the second biggest, followed by Unilever, Electric Ireland and Sky. This group of advertisers is an indication of the diversity of categories and brands utilising DOOH. Other main categories on display in Q1 were films, food and finance.

A nice addition to the Digital OOH landscape in Q1 was the introduction of the Connolly Digital Gallery, a collection of 12 70” Digital screens side by side on the platform in Connolly Station. The installation is highly impactful and offers great potential for an imaginative creative mind. Early adopters on the format include Vit-Hit, Chicago Town Pizza, Cadbury and Avonmore Protein Milk.

The largest OOH campaign of the quarter, for mytaxi, included several DOOH formats, including Green Screen, TransVision, Orbscreen and Social D.

Pat Cassidy, Digital, Innovation and

Experiential Manager, PML Group

Digital OOH on the Ascendant

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Top 10 DOOH Advertisers Q1 20171 2 3

4 5 6

9

10

7 8

SoV: 11.4% SoV: 4.1% SoV: 3.1%

SoV: 2.7% SoV: 2.7% SoV: 2.6%

SoV: 2.0%

SoV: 2.0%

SoV: 2.5% SoV: 2.1%

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Top 10 DOOH Categories Q1 20171 2 3

4 5 6

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10

7 8

SoV: 11.4% SoV: 11.3% SoV: 10.2%

SoV: 9.9% SoV: 9.3% SoV: 6.4%

SoV: 4.3%

SoV: 4.1%

SoV: 5.0% SoV: 4.7%

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Digital display value by environment Q1 2017

TRAVEL 24.0%ROADSIDE 9.1%

RETAIL 65.2%

1.6%LEISURE

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3. THE BIG FIVE

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Below are the 5 biggest campaigns in each of cycles 1 – 7, 2017 (Q1)

Irish Life Health AIB Vhi Healthcare

TV3 Group Virgin Media Virgin Media

National Lottery Bank of Ireland Avonmore Super Milk

McDonald’s Wraps Lucozade Sport Lego Batman Movie

Ford Motors Just Eat Guinness Rugby

€424,239 €375,774 €297,678

€273,000 €250,533 €204,918

€340,947 €300,004 €247,997

€166,626 €241,543 €194,301

€158,660 €221,483 €183,601

Cycle 1 Cycle 2 Cycle 3

(Based on display value at rate card)

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Cycle 4 Cycle 5 Cycle 6

Cycle 7

(Based on display value at rate card)

AIB Knorr Naturally Tasty Ulster Bank

mytaxi

Cadbury Range Diet Coke Vodafone

Tesco

An Post Cadbury Dairy Milk Oreo Carphone Warehouse

Bulmers Cider

Coors Light Kong: Skull Island Subway

McDonald’s McMÓR

Cadbury Easter

Irish Life Smithwick’s Guinness Rugby

€395,560 €225,852 €260,087

€565,013

€249,927 €204,484 €223,776

€239,701

€342,120 €220,968 €251,210

€291,550

€208,528 €202,313 €215,621

€226,493

€201,285 €193,914 €179,540

€179,540

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4. RE//FORMAT

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The ROI market consolidated in 2017 after a particularly strong Q1 last year which was up 15%. Large format billboards (48 Sheets, 96 Sheets and Metropoles) performed strongly, particularly backlit and HD displays, while roadside 6 Sheets and Bus T-Sides were down.

A range of digital formats stood out including Commuter dPods (including the Connelly Station 12 screen gallery) and new and expanded screen offerings across retail, leisure and travel environments including:

• Clear Channel - Adshel Live units in Westend Shopping Park and Manor West Shopping Centre with rollout continuing in Q2.

• Wide Eye Outdoor – Retail Ds in Swan and Ilac Centres and revamped Social D in-bar offering.

• Adtower – expanded network of Digi and DigiXtowers across convenience multiples

• DAA – Aerpods in Dublin Airport’s T1 and T2.

James Byrne, Marketing Manager, PML Group

Format Developments Q1 2017

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Market breakdown by formatThe chart below shows the breakdown of the entire OOH market by format type, based on display value in Q1 2017

Small34.8%

Bus Shelter 18.1%

Other 6 Sheets 12.5%

Other Small Formats 4.1%

Large31.5%

48 Sheets 20.5%

Metropole/Commuter Square 5.8%

Other Large Formats 5.2%

Transport14.6%

Digital13.6%

Ambient & Airport

4.4%

Other1.1%

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Top 15 Advertiser format breakdown

Diageo

McDonald's

AIB Group

Premier Lotteries Ireland

Mondeléz

Vodafone

Heineken Ireland

Unilever

Warner Bros.

Mars Ireland

Sky

Aer Lingus

Volkswagen

Irish Life Group

Lucozade Ribena Suntory

0% 20% 40% 60% 80% 100%

AVERAGE

29.1% 53.3% 10.8%

35.6% 11.0% 44.3%

44.0% 38.5% 6.9% 10.5%

20.7% 8.5% 61.2%

49.4% 25.0% 19.9%

78.3% 9.0%

51.3% 23.0% 12.1% 15.1%

16.9% 27.2% 23.6% 29.8%

31.2% 38.3% 12.0% 14.7%

45.3% 26.6% 7.9% 20.2%

7.0% 69.1% 10.1%

38.1% 30.4% 14.6% 16.3%

52.6% 17.2% 10.5% 15.1%

8.9% 73.1% 9.8%

11.7% 68.8% 8.0%

52.5% 24.1% 7.1% 15.0%

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Top 10 Categories format breakdown

0% 20% 40% 60% 80% 100%

36.5% 36.4% 14.3% 11.3%

56.3% 14.3% 8.5% 16.3%

23.7% 39.0% 14.9% 12.1% 8.3%

43.2% 17.1% 33.8%

27.8% 51.7% 9.7% 8.7%

22.5% 60.1%

28.3% 33.8% 18.3% 11.5%

55.1% 19.2% 9.3% 12.6%

33.9% 34.2% 15.6% 11.4%

27.9% 44.3% 10.6% 11.6%

17.4% 26.3% 28.3% 25.9%

Finance

Food

Tourism & Travel

QSRs

Telecoms

Beers & Ciders

Films

Retail Outlets

Confectionery & Snacking

Media

AVERAGE

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Top three Small Format Advertisers Q1 20171

AIB Group McDonald’s

Diageo

2

3

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Top three Large Format Advertisers Q1 20171

Diageo Heineken Group

Vodafone

2

3

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Top three Transport Format Advertisers Q1 20171

McDonald’s Diageo

Vhi

2

3

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Contact DetailsFor further details on this report or Posterwatch in general please contact: James Byrne james@pmlgroup.ie, Colum Harmon colum@pmlgroup.ie.

About PML Group

About Posterwatch

Established thirty five years ago, PML Group is the largest and longest established Out of Home communications specialist in Ireland. PML Group is engaged in all aspects of the planning and buying of Out of Home media on behalf of Ireland’s leading media agencies, media independents, advertising agencies and advertisers.

The group consists of Poster Management, Source out of home, AmbientPlus, Poster Audit Bureau, Digital Out of Home centre and Design+, all specialising in the various aspects of OOH advertising. We have offices in both Dublin and Belfast, serving the entire island of Ireland.

PML Group is part of the Posterscope Worldwide Network.

Posterwatch is PML Group’s market intelligence service, providing the most comprehensive information and design library in the Out of Home market in Northern Ireland and the Republic of Ireland. It measures the formats, weights, value and timing of every Out of Home campaign in every cycle.

Our Posterwatch information stretches back over 20 years and information on a cycle is available in the week following the end of the cycle. All Out of Home advertising is covered by Posterwatch, from billboards and bus shelters, to buses, ambient media and Digital OOH formats.

Posterwatch is the quickest as well as the most complete source of OOH advertising data in the country.

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