Barbara Siss Oney Proprietary & Confidential, 2006 1 The Digital Airport Initiative

Barbara Siss Oney

Proprietary & Confidential, 2006

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The Digital Airport Initiative

Barbara Siss Oney Proprietary & Confidential, 2006

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Digital Airport Initiative

The Digital Airport Initiative is a Public/Private collaboration that transforms the airport into an ultra-high tech communication venue for everything North East Ohio.


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Fueled by a first of its kind community/airport collaboration partnering the power of OneCommunity, a nonprofit, ultra-broadband network

with regional technology companies, content developers and advertising sales companies,

the airport is powering an economic boon by controlling, developing and growing one of the most important communication venues in the region.


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The Digital Airport will be:

1. A dynamic collaboration between public and private sectors across all communities in the region

2. A unique and distinctive experience that showcases our region to millions of people

3. Self-sustaining and revenue building for the airport


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Collaboration

Collaboration


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Collaboration• A team of community experts will…….

• Partner with the Airport to develop a comprehensive “Experiential” environment throughout the airport which will be

• Holistically developed to provide visitors with a comprehensive encounter with the full range NEO assets.


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Collaboration

Cleveland Hopkins International Airportthe HUB, the FRONT DOOR, the PORTAL to our region will provide a way for

our community to work together……

The airport in full collaboration with its Northeast Ohio Community


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CollaborationA central management team will coordinate the regional groups

that specialize in Ad Sales, Technology and Content.

Cleveland Hopkins Airport

Digital Airport Management:Overall coordination of all aspects between all groups

Financial oversight, collections, disbursementsSponsorship Sales and Management

Advertising Sales Content DevelopmentTechnology

Infrastructure Hardware

Maintenance

Local/Regional National

Industry Specific

Core Content Edu-tainmentAdvertising content


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Collaboration

• Regional companies and project advisors will work together to develop the scope of the initiative

• Groups and Advisors currently include:• Senator Eric Fingerhut• Michael DeAloia, City of Cleveland• David Yen, Cleveland World Trade Center• Kathy Coakley Barrie, Spy Museum, Rock and Roll Hall• Tom Sudow, Beachwood Chamber of Commerce• David Moss, Cleveland Institute of Art• Micki Byrnes, Channel 3 WKYC• Scot Roark, Mark Ansboury, OneCommunity• Randall McShepard (RPM)• Prashant Chopra, CampusEAI• Micki Tubbs, David Wallace, SchoolOne• Marcus May, IQ Digital• Michael Settoni, Broadcast Media Ideas• Colette Taddy Hart, Cleveland State University• Len Steinbach, Cleveland Museum of Art• Scott Moss, Tenth Floor


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Collaboration

• And will work with regional organizations for content ideas and sponsor prospects

(a sample of target organizations)• NorTech• Team NEO• The Cleveland Marketing Alliance• The Greater Cleveland Partnership• The Convention and Visitors Bureau of Greater Cleveland• Akron Chamber of Commerce• Akron Convention and Visitors Bureau• Magnate


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Collaboration

And to assist in coordination of efforts among the regions assets such as:• Arts and Culture Institutions• Businesses and Industries• Neighborhoods and Communities• Universities• Philanthropic Organizations


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Digital Showcase

All coming together to dynamically showcase Northeast Ohio


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Digital Showcase

ThroughExperiential Interactive Technology


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Digital ShowcaseLogically and strategically placed

throughout the entire airport


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Digital Showcase

• The visitor is introduced to what makes this region so great:

Through this venue, this front door to our region, Northeast Ohio can tell its story: Cleveland’s NASA division is not featured on TV when the shuttle launches. Our NASA designs the elements that make the rockets go higher, faster, longer


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Digital ShowcaseNorth East Ohio is not

seen as an auto manufacturing center but instead it makes all the components that make the cars better, smoother, smarter and more colorful.


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Digital Showcase

How to get the word out that we are one of only four World-Wide Digital Communities? Our story is not immediately evident because it’s what’s inside that makes North East Ohio and Cleveland Great.


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Digital ShowcaseIt is the products inside of all

the brand names, the heart the Clinic works on, the people inside our neighborhoods, the mid-west sensibility inside our traditions and culture. Its the world-level Orchestra musician and cutting-edge artist. You have to experience this to know it. It’s what’s inside that makes us great. When millions of people come into our airport – we have a chance to let them experience what makes us great.


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Digital Showcase

The Digital Airport will employ the full spectrum of cutting-edge technology to tell, interact and activate all those coming in contact with the facility. Employing Broadband Ultrahigh Speed digital technology the Digital Airport will be able to feed through flat screens, linear short-form broadcast content.


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Digital Showcase

It will also be able to transmit three-dimensional animated encounters of a NASA rocket or Cleveland Clinic Heart. There will be touch-screen content that beam to PDAs and phones or down-loads to a USB flash memory card for more information on companies or goings on in the region.


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Digital Showcase

There will be gesture-activated virtual tours of museums, neighborhoods or parks and video-gaming kiosks where you can test out the newest model being developed by the region’s new gaming community.


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Digital ShowcaseOpen wall spaces could be rethought

without considerable cost or loss of space.


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Digital Showcase

The digital technology allows for expanded messaging

while at the same time increasing advertiser opportunities


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Digital ShowcaseThe Meet and Greet area could be a dynamic environment where those waiting learn about our region’s businesses, neighborhoods and all there is to do. It would be a comfortable, entertaining area dressed by products from across the region.

Examples could be:Kichler LightingMoen Water Faucet Fountain


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Digital Showcase

The Information Area could be a unique compelling array of interactive visual displays that would allow for easy traffic pass-through but compelling engagement. It could be remotely, digitally updated to speak to groups exiting the area, current happenings, transportation communications etc.


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Self-Sustaining Revenue

Revenue Generating

& Self-Sustaining


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• How will we generate revenues? Advertising and Sponsorship!

• Airport Travelers are extremely desirable consumers and attract very high media fees.

• We have a captive audience behind security

• We have a captive audience waiting in the ticketing and luggage areas.


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Airport Audience per: Arbitron 2004Upscale consumers 80% more likely to have HH income of $100,000

Avid movie goers and DVD collectors

Frequent Flyers 58% of travelers are Frequent Flyers61% of FF are males 25-54well educated, sophisticated business people

avg 18 flights/yr230% more likely to have income over $100,000Avg 2 hours before flights and additional upon arrival

Located in prime markets 39% of all Americans using airline travel in past year are concentrated in 10 DMAs 46% of FF are center in 10 markets


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Self-Sustaining RevenueConsider Cleveland Hopkins Airport:11,300,000 -passengers passed through Cleveland Hopkins Airport in 2004

941,600 -passengers per month

31,000 -passengers per day

1.5 hours -wait time between flights in terminal

HUB -for Continental Airlines

450 -daily flights

22 -carriers

140 -US domestic cities serviced

46 -daily, one-stop select hub connection to International cities

90 minutes -flight time to 70% of all US Industries and 555 of US population


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Revenue Generating & Self-Sustaining• Based on the rate card of a national outdoor advertising

company, the following illustrates the range of annual gross billings that could be produced.

San Antonio: $2.7 million (6.8 million annual passengers)

Cleveland: $__._ million (11.3 million annual passengers)

St. Louis: $29.9 million (13.4 million annual passengers)

Boston: $193.2 million (26.1 million annual passengers)


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Self-Sustaining Revenue• St. Louis• Annual Passengers: 13,384,757• Monthly Passengers: 1,115,396

• Displays:#/units Cost Cost CPM Billings• 1-2 mo. 3-12 mo. (3-12mo cost)• Dioramas full 21 $87,830 $67,480 $60.5 $17,004,960• Dioramas half 11 $46,010 $35,350 $31.69 $4,666,200• Diorama single 1 $4,920 $3780 $3.39 $45,360• Mini Spectaculars full 8 $85,680 $65,900 $59.08 $6,326,400• Mini Spectacular half 4 $42,840 $32,950 $29.54 $1,581,600• Mini Spect. single 1 $12,600 $9690 $8.69 $116,280• Spectaculars 1 $15,440 $11,870 $10.64 $142,440• Overhead Spectact. 1 $7,960 $6,120 $5.49 $73,440• Wraps: wall, soffit, Upon request• escalator, columns• Floor exhibits Upon request• Banners Upon request• Window clings Upon request

• TOTAL $29,956,680


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Cleveland has the potential to deliver up to • $25Million in gross billings annually.

• (Assuming the same number of displays as St. Louis and adjusting for slightly smaller passenger number)


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• Net Revenue Projections for airport after start-up expenses:

$2-$5 million annually(current requirement: $900,000)


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Start-up and on-going revenue sources:Start-up:

October 2006-September 2007

Foundation Sponsor/Advertiser Pledges Bank LineTechnology Sponsors product donation

Start-up Partners12-month billing

deferral

Year Two:October 2006-

September 2008

Multi-yearSponsorships

Revenue

Advertising Sales Bank LineTechnology SponsorsProduct Donation


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Financial goals/expectations:1. There will be heavy start-up costs which should plateau in year two while ad sales will

start slowly and should be reaching goal within 2-3 years. Grants, sponsorship and initial advertising will support the launch.

2. There will be multi-year Corporate sponsorships for key locations (ie concourses, meet&greet, Info. center)

3. There will be multi-year Technology sponsors. Sponsorships will primarily require partners to supply most cutting-edge products and keep them working and up-to-date

4. Net profit will be split with the airport and the Digital Airport management. The Digital Airport management intends to maintain a sufficient reserve from profits to oversee upgrades, maintenance etc. However, this should still allow a sizable upside profit to the airport starting in year 3 once the start-up costs are overcome.


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The Airport of the Future


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Airport of the Future

“The Cleveland Airport System exists to serve as an economic catalyst

for the City of Cleveland, and the entire Northeast Ohio region.” clevelandairport.com


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Experience Northeast Ohio and you’ll learn….

It’s what’s inside that makes us great…


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The airport of the future is

HERE to SEE

AT

CLE

Documents

Barbara Siss Oney Proprietary & Confidential, 2006 1 The Digital Airport Initiative