1
Fred Seegal Vice Chairman
212.508.1626 (w) 917.992.5027 (m) [email protected]
Rich Brail Managing Director 212.508.1628 (w) 646.458.1570 (m)
Juan Mejia Director
212.508.1659 (w) 917.716.8143 (m)
Mark Boidman Director
212.508.1661 (w) 917.526.1092 (m) [email protected]
Media, Entertainment, Communications & Technology
Joe Stein Managing Director 212.508.1662 (w) 203.550.2184 (m)
Capital Markets
INVESTMENT BANKING
Report Summarizing Advertising Market
Activity
JUNE 2013
THE ADVERTISING MARKET– AT A GLANCE
www.pjsolomon.com
Economic News Overview
Economic recovery continues at a slow pace – Q1’13 GDP grew 2.4%, driven by a 3.4% increase in private consumption – GDP grew 0.4% in Q4’12, driven by a 2.1% increase in private consumption offset by declining defense
spending U.S. added 175,000 jobs in May
– Unemployment rate increased slightly to 7.6% from 7.5% as more individuals seek jobs Slight improvement in personal income (0.1% decrease in personal income in March; 1% increase in
February) Durable Orders rose 3.3% in April
– Bounced back from 5.9% decline in March May home sales rose 4.2%, highest level since November 2009
– Total housing inventory at end of May was up 3.3% – The annual sales rate rose 2.3% in April to 454,000
Housing supply is still low – Total supply at the March sales rate is 5.1 months, down from 5.2 months in April
Source: U.S. Bureau of Labor Statistics, Bloomberg, and Wall Street Research.
2
The Advertising Market – At a Glance
www.pjsolomon.com
Source: Company filings and website, Capital IQ, Bloomberg and Wall Street research.
Market Indicators
Share Price Performance
Performance% of 52 1- Day 1-Week 1-Month YTDWeek % % % %
6/21/13 High Change Change Change ChangeNasdaq Composite 3,357 96% (0.2%) (2%) (3%) 8%Dow Jones Industrial 14,799 96% 0.3% (2%) (3%) 10%S&P 500 1,592 95% 0.3% (2%) (4%) 9%
Bloomberg Economic ForecastCurrent 2Q13E 3Q13E 4Q13E 1Q14E
Real GDP 2.40 1.70 2.30 2.60 2.80Core CPI 1.70 1.40 1.50 1.50 1.70Fed Funds 0.25% 0.25% 0.25% 0.25% 0.25%3 Mo. LIBOR 0.37% 0.37% 0.48% 0.56% 0.63%10 Yr Treasury 1.85 2.13 2.21 2.38 2.57Unemployment 7.73 7.50 7.40 7.35 7.20
Stock Price 1-Week % 1 - Month % YTD % Stock Price 1-Week % 1 - Month % YTD % Out-of-Home 6/21/13 Change Change Change Radio 6/21/13 Change Change ChangeAPG|SGA CHF 219.90 0% (9%) 7% Beasley Broadcast Group $7.64 2% 2% 53%AirMedia Group $1.73 (2.3%) (11%) (15%) CC Media 5.50 (4%) 5% 62%Clear Channel Outdoor 7.40 0% (14%) 5% Cumulus Media 3.35 (1%) (9%) 26%Clear Media HK$5.70 4% -- 33% Emmis Communications 1.68 (1%) 5% (15%)JCDecaux SA €19.86 (1%) (5%) 9% Entercom Communications 9.20 (6%) (2%) 27%Lamar $42.24 (1%) (12%) 6% Radio One 2.33 2% (2%) 210%Mood Media 1.03 1% (7%) (46%) Saga Communications 46.89 1% 4% 34%National CineMedia 15.95 (6%) (7%) 5% Salem Communications 7.20 (6%) (4%) 32%RMG Networks 11.93 (0%) 7% 20% Sirius XM Radio 3.15 (4%) (11%) 4%Ströer €7.85 1% (10%) 16% Spanish Broadcasting System 3.53 (1%) (19%) 39%VisionChina Media 2.30 -- (6%) (34%)
Out-of-Home Median -- (7%) 6% Radio Median (1%) (2%) 33%Out-of-Home Mean (0%) (7%) 1% Radio Mean (2%) (3%) 47%
BroadcastingBelo $14.02 0% 25% 76% Advertising/MarketingEntravision 6.25 15% 41% 265% Dentsu ¥3,395.00 4% (10%) 47%Fisher Communications 41.08 0% (0%) 48% Havas €4.79 2% (4%) 11%Gray Television 7.16 10% 27% 213% Interpublic $14.27 (2%) (1%) 23%LIN TV 14.22 3% 20% 73% Omnicom 62.03 (1%) (0%) 21%Media General 9.36 3% 15% 110% Publicis €53.51 (2%) (6%) 16%Nexstar Broadcasting Group 33.82 10% 25% 197% WPP £10.89 (3%) (8%) 18%Sinclair Broadcast Group 28.43 4% 8% 115%
Broadcasting Median 3% 22% 112% Advertising/Marketing Median (1%) (5%) 19%Broadcasting Mean 6% 20% 137% Advertising/Marketing Mean (0%) (5%) 23%
Diversified MediaCBS $46.89 (2%) (9%) 19%Discovery 75.42 (1%) (5%) 15%Disney 62.73 (2%) (4%) 23%News Corp. 31.42 0% (5%) 18%Scripps 66.04 (1%) (3%) 11%Time Warner 56.81 (1%) (5%) 14%Viacom 65.72 (2%) (6%) 17%
Diversified Media Median (1%) (5%) 17%Diversified Media Mean (1%) (5%) 17%
3
The Advertising Market – At a Glance
www.pjsolomon.com
Sector News
Other Key Media, Entertainment, Tech Headlines (May-June)
Out-Of-Home Radio Broadcasting / Distribution 6/20: CBS Outdoor International
announced it has signed onto Ayuda Platform
6/7: Bus shelters in Montreal will be installed with digital displays equipped with gesture recognition technology in connection with deal between Quebecor Media and Société de transport de Montréal
6/6: IRS is forming an internal group to examine the legal status of "real estate" for REIT conversions. This new IRS group will likely impact the IRS' ability to provide a timely response to companies with similar REIT-conversion requests, including those in the billboard space
6/6: eBay announced it will launch four interactive storefronts in Manhattan which will appear on front windows of closed stores where shoppers will be able to order merchandise through a touch screen and schedule a free, one-hour delivery
5/30: ABC Regional Sports & Entertainment Sales and Branded Cities Network have signed an exclusive sales and marketing agreement to build digital out of home LED network in major cities across the country
5/29: JCDecaux unvelied its largest digital advertising sign at JFK and announced rollout of its Prestige Digital Network of 70” HD screens at Newark Liberty International Airport
5/28: oOh! Media, Australia’s largest owner of digital out-of-home advertising environments, has completed conversion of its digital signs to BroadSignX
6/26: CNN shuttered last vestige of its audio offerings, more than a year after it exited the over-the-air broadcast business
6/25: Radio spending slipped 1.7% in Q1 according to Kantar Media
6/12: Pandora Media acquires KXMZ-FM radio station to cut royalty payments
6/12: Clear Channel inks revenue-sharing deal with band Fleetwood Mac, the first of its kind between a radio station and a music act
6/10: Apple announces iTunes Radio, to be launched this fall
6/4: FCC hired new Enforcement Bureau chief
5/31: Community Broadcasters acquiring seven radio stations in New York state markets
5/15: Google announced several new software features including a new music streaming service
5/13: Woodward Communications announced the acquisition of four Bahakel’s radio stations in Cedar Falls, Iowa
5/8: New Triton Digital listening data confirmed that more than half of internet radio listening (56%) occurred on mobile devices in March
5/8: Bloomberg radio launched in Boston
5/7: Pandora stated that it was successful in capping the amount of listeners it had in March with its first trial of the 40-hour monthly listening limit
6/25: Fisher Communications has set up special shareholder meeting for August 6 to vote on sale to Sinclair
6/18: Intermountain West Communications is selling a pair of TV stations to Idaho Broadcast Partners
6/18: DirecTV is rumored to be in lead to acquire Hulu
6/13: Gannett announced it will acquire outstanding Belo shares for $1.5 billion
6/11: Time Warner Cable announced it will begin testing its cloud-based video guide in New York City, Los Angeles and Syracuse this September
6/7: Google’s Motorola Mobility Holdings settled patent-infringement dispute with TiVo for a reported $490 million
6/6: Redbox’s instant move-streaming service will be available on Roku’s platform this summer
6/6: Media General and Young Broadcasting Holding Company announced definitive agreement to combine the two companies in an all-stock merger transaction
6/5: Vubiquity and TiVo have inked a deal to integrate Vubiquity’s AnyVU streaming service with TiVO broadband-connected DVRs
6/5: Sinclair Broadcast acquires four TV stations owned by TTBS for $115 million
6/4: Liberty Global named Dana Strong as COO of Virgin Media
6/3: CBS announced it will acquire remaining 50% stake in TV Guide Digital from Lionsgate
5/20: Liberty Global has put Chellomedia television-channel business up for sale
Google earned more than half of the $8.8 billion advertisers worldwide spent on mobile internet ads in 2012, according to eMarketer Yahoo! Announced it is acquiring Rondee, a conference calling service, and Ghostbird Software, a photo app maker for Apple’s iOS Google announced that it is acquiring mobile satellite navigation startup Waze for $1.1 billion Koch Industries hired services of a financial adviser to explore profitable media investments Tremor Video files for IPO worth $86.25 million
4
The Advertising Market – At a Glance
www.pjsolomon.com
“We initiate coverage on Lamar with a Buy rating and a $45 target (20% upside potential) based on a view that Lamar converts to a REIT. We expect Lamar’s recent outperformance to continue as the current valuation does not appear to price in the full upside from conversion to a REIT, which we view as likely in 2014, including the digital displays business. While uncertainties remain regarding timing and qualification of income, we see attractive probability weighted upside/downside risk.” – October 3, 2012
“CBS announced two initiatives for its Outdoor division that we believe will unlock significant value for shareholders…REIT conversion would imply significant upside to the implicit valuation for Outdoor…we are raising our valuation for CBS outdoor from $4bn to $6-7bn.” – January 17, 2013
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
$20.00
$25.00
$30.00
$35.00
$40.00
$45.00
$50.00
$55.00
Jun-12 Sep-12 Dec-12 Mar-13 Jun-13
Lamar CBS
Up until June 6 announcement regarding “Working Group,” markets had responded favorably to REIT conversion announcements
Source: Wall Street Research.
Stock Price Performance and Volume
Analyst Perspectives at Announcement
Lamar and CBS Outdoor REIT Conversion Update
Analyst Perspectives Today
“Formation of IRS “Working Group” adds some uncertainty to REIT process with IRS. LAMR indicated it has no reason to conclude that it will not be in a position to complete REIT conversion by Jan 1, 2014.”
“IRM is not an outdoor advertising business, read-across to LAMR/CBS is unclear. While this working group may suggest greater scrutiny of REIT applications, we do not interpret the “tentatively adverse” view of IRM’s PLR as relevant to either LAMR or CBS Outdoor.”
“LAMR - $3 down, $12 up: In the event of an adverse opinion, we see non-REIT support for OW rated LAMR shares around $39 (~10% downside from after market trading level), or 10x fwd EBITDA. If ultimately its application is approved we continue to view our $54 price target as realistic (and have a $63 bull case if the local ad market improves).” – June 7, 2013
8/8/2012: LAMR Conversion
Announcement
CBS: 35mm Volume spike
1/16/2013: CBS Conversion
Announcement
6/6/13: Formation of IRS “Working Group”
Summary Stats - Conversion AnnouncementsLAMR CBS
Avg. Daily Volume 3 Months Prior 742,880 6,385,553Daily Volume Spike - Announcement 7,319,295 35,081,5001-Day Performance - Announcement 9.2% 7.9%
Summary Stats - IRS "Working Group" Formation (a)LAMR CBS
Avg. Daily Volume 3 Months Prior 837,770 6,139,669Daily Volume Spike - Announcement 7,696,900 10,329,5101-Day Performance - Announcement (4.2%) (1.7%)
5
The Advertising Market – At a Glance
www.pjsolomon.com
Companies like Walmart and eBay are using DOOH to reshape how consumers think about mobile shopping
Source: News articles.
Developments in DOOH-Based m-Commerce
With the help of DOOH, advertising is being transformed into a full, end-to-end shopping experience
– Purchase, payment and delivery are a fully-closed loop
Walmart and Proctor & Gamble launched 50 “mobile stores” inside various Toronto bus shelters starting the week of June 6, 2013
– Consumers can scan QR codes from mobile devices in order to purchase advertised items, including Pampers diapers, Tide detergent and Crest toothpaste
– Products are then delivered to their homes free-of-charge
On June 5, eBay and retailer Kate Spade announced a similar plan to launch four interactive storefronts in Manhattan
– 24-hour “Window Shops” will appear on the front windows of Kate Spade stores, even when the brick-and-mortar stores are closed
– Shoppers will be able to order merchandise through a touch screen
– Purchases will be delivered to customers’ doors within one hour, and payment will be made through mobile PayPal service at the point of delivery
– Could be a model for companies with large brick-and-mortar store fleets to successfully integrate m-commerce into their retailing strategy
Digital-Out-Of-Home is Facilitating the Shift from e-Commerce to m-Commerce
Illustrative Interactive Advertisements
6
The Advertising Market – At a Glance
www.pjsolomon.com
Source: Wall Street Research
Provides contextually relevant content to the time and location New technology provides interactivity and flexibility to installations
– More flexible and dynamic than traditional OOH – Faster launch times and streaming content – Rich engagement – Mobile wallet
Digital-Out-Of-Home Network Categories
Digital-Out-Of-Home Growth Opportunities
Digital place-based
networks
Both digital networks and/or digital
signage
Network Category
Locations Leading Providers
Cinema Movie screens
Office Elevators, lobbies and convention halls
Fitness / personal care
Fitness centers, salons and spas
Healthcare
Doctor and dentist offices, hospitals and pharmacies
Hospitality
Hotels, resorts, restaurants, clubs and tourist attractions
Transit
Airports, bus and train stations, taxis and gas stations
Entertainment
Casinos, stadiums concert halls and restaurants
Retail
Malls, groceries, food courts, convenience halls and restaurants
Technology
QSR, malls, office buildings, other
7
The Advertising Market – At a Glance
www.pjsolomon.com
12.6 x 11.9 x 10.3 x 10.1 x 9.4 x 9.2 x 9.0 x
--
5.0 x
10.0 x
15.0 x
Discovery Scripps Walt Disney News Corp. Time Warner Viacom CBS
19.1 x 11.5 x 11.4 x
9.3 x 9.2 x 9.0 x 8.7 x 8.6 x
--
8.0 x
16.0 x
24.0 x
Sirius Nexstar CC Media Cumulus Belo Salem LIN TV Entercom
11.5 x 10.4 x 7.5 x 6.2 x
--
5.0 x
10.0 x
15.0 x
Lamar Clear Channel Outdoor JCDecaux Stroer
$5.7B
Out-of-Home Sector Recent Trading Performance
Source: Capital IQ and Wall Street Research. * Broadcasting 2013E is 2012-2013E.
EV / 2013E EBITDA
Market Cap Enterprise Value
Out-of-Home
$4.0B $6.1B
$2.7B $7.3B
$5.8B $0.5B $0.9B
Diversified Media
Market Cap Enterprise Value
$26.5B $30.5B
$9.7B $11.1B
$72.9B $83.9B
$53.0B $69.9B
$113.0B $128.0B
$29.8B $35.9B
$31.9B $39.8B
Market Cap Enterprise Value
$20.1B $22.3B
$0.5B $20.5B
$0.2B $0.5B
$0.7B $1.7B
$1.0B $1.9B
$0.6B $3.3B
$0.3B $0.9B
Radio and Broadcasting
2%
(23%)
(4%)
65%
49%
$1.5B $2.2B
Relative Stock Price PerformanceClear Channel
NCMI Outdoor JCDecaux Lamar S&P 5001 Month (4%) (13%) (3%) (13%) (3%)3 Month 6% (1%) (4%) (12%) 2%6 Month 19% 7% 15% 12% 14%1 Year 18% 22% 23% 58% 21%3 Year (4%) (23%) 2% 65% 49%
(60%)
(40%)
(20%)
0%
20%
40%
60%
80%
100%
Jun-10 Oct-10 Feb-11 Jun-11 Oct-11 Feb-12 Jun-12 Oct-12 Feb-13
NCMI CCO JC Decaux Lamar S&P 500
8
The Advertising Market – At a Glance
www.pjsolomon.com
Source: Capital IQ. * Broadcasting 2013E is 2012-2013E and 2014 is 2013E -2014 E.
Valuation Metrics 96.762829 Valuation Multiples Growth
Stock Price 52-Week 52-Week Equity Enterprise EV / Revenue EV / EBITDA '12A - '14E CAGROut-of-Home 6/21/13 Low High Value Value 2013 E 2014E 2013E 2014E Revenue EBITDAClear Channel Outdoor USD $7.40 4.48 8.75 2,648 7,285 2.4 x 2.4 x 10.4 x 9.7 x 1% 4%JCDecaux SA EUR €19.86 15.75 22.20 4,412 4,341 1.6 x 1.5 x 7.5 x 6.9 x 2% 6%Lamar USD $42.24 26.21 49.61 3,983 6,062 4.9 x 4.7 x 11.5 x 10.9 x 3% 4%National CineMedia USD 15.95 13.06 19.00 1,543 2,443 5.3 x 5.0 x 10.7 x 10.0 x 3% 7%Global / U.S. Median 3.7 x 3.5 x 10.5 x 9.8 x 3% 5%Global / U.S. Mean 3.5 x 3.4 x 10.0 x 9.4 x 2% 5%
APG|SGA CHF $219.90 161.00 242.50 647 565 1.7 x 1.7 x 7.2 x 6.9 x 2% (15%)Ströer EUR €7.85 6.36 9.71 384 696 1.2 x 1.1 x 6.2 x 5.6 x 6% 11%Europe Median 1.4 x 1.4 x 6.7 x 6.2 x 4% (1%)Europe Mean 1.4 x 1.4 x 6.7 x 6.2 x 4% (1%)
AirMedia Group USD $1.73 1.33 2.77 105 (10) NM NM NM NM 2% 4%Clear Media HKD HK$5.70 3.82 5.90 3,015 1,828 NA NA NA NA NA NAVisionChina Media USD 2.30 2.00 19.40 12 (2) NM NM NM NM (7%) NMChina Median NM NM NM NM (3%) 4%China Mean NM NM NM NM (3%) 4%
Mood Media USD $1.03 0.90 3.19 177 736 1.3 x 1.3 x 6.3 x 5.5 x 9% 7%
Total Out-of-Home Advertising Median 1.7 x 1.7 x 7.4 x 6.9 x 3% 5%Total Out-of-Home Advertising Mean 2.6 x 2.5 x 8.5 x 7.9 x 2% 4%
RadioBeasley Broadcast Group USD $7.64 3.53 9.14 175 276 NA NA NA NA NA NACC Media USD 5.80 1.20 6.98 476 20,527 3.3 x 3.2 x 11.4 x 10.5 x 1% 1%Cumulus Media USD 3.35 2.09 3.89 589 3,278 3.0 x 2.9 x 9.3 x 8.2 x 2% 4%Emmis Communications USD 1.68 1.43 2.57 69 251 NA NA NA NA NA NAEntercom Communications USD 9.20 5.25 10.13 342 898 2.3 x 2.3 x 8.6 x 7.7 x 1% 2%Radio One USD 2.33 0.68 2.66 115 1,104 NA NA NA NA NA NASaga Communications USD 46.89 25.31 51.61 266 300 2.4 x 2.3 x 8.4 x 7.7 x 1% 0%Salem Communications USD 7.20 4.62 10.14 178 484 2.1 x 2.0 x 9.0 x 8.3 x 2% 5%Sirius XM Radio USD 3.15 1.80 3.63 20,104 22,285 5.9 x 5.4 x 19.1 x 15.6 x 7% 8%Spanish Broadcasting System USD 3.53 2.02 4.97 26 361 NA NA NA NA NA NA
Radio Median 2.7 x 2.6 x 9.1 x 8.3 x 1% 3%Radio Mean 3.2 x 3.0 x 10.9 x 9.7 x 2% 3%
BroadcastingBelo USD $14.02 5.88 14.24 1,455 2,169 3.2 x 2.9 x 9.2 x 9.2 x 2% 1%Entravision USD 6.25 1.10 6.25 542 850 3.9 x 3.6 x 12.1 x 12.0 x 2% 1%Fisher Communications USD 41.08 22.76 41.82 364 345 2.2 x 1.9 x 12.8 x 11.6 x 3% 8%Gray Television USD 7.16 1.35 7.42 412 1,224 3.6 x 3.0 x 9.2 x 9.4 x 1% (2%)LIN TV USD 14.22 2.82 15.29 770 1,702 2.6 x 2.2 x 8.7 x 7.8 x 11% 9%Media General USD 9.36 3.70 10.17 261 796 2.4 x 2.1 x 8.0 x 8.0 x 2% 0%Nexstar Broadcasting Group USD 33.82 6.00 34.43 993 1,898 3.7 x 2.9 x 11.5 x 8.4 x 21% 23%Sinclair Broadcast Group USD 28.43 8.26 29.67 2,839 5,092 3.7 x 2.8 x 11.3 x 9.0 x 19% 17%
Broadcasting Median 3.4 x 2.8 x 10.2 x 9.1 x 2.8% 4.5%Broadcasting Mean 3.2 x 2.7 x 10.4 x 9.4 x 7.6% 7.2%
Advertising/MarketingHavas EUR €4.79 3.48 5.26 1,862 2,135 1.2 x 1.1 x 7.4 x 7.0 x 2% 3%WPP GBP £10.89 7.39 11.92 15,053 18,123 1.6 x 1.6 x 9.6 x 8.9 x 4% 5%Publicis EUR €53.51 35.11 57.64 11,238 11,080 1.6 x 1.5 x 8.6 x 8.0 x 4% 3%Interpublic USD $14.27 9.04 14.99 6,114 7,186 1.0 x 1.0 x 7.8 x 7.1 x 2% 7%Omnicom USD 62.03 45.11 64.29 16,040 19,084 1.3 x 1.2 x 8.9 x 8.4 x 3% 3%Dentsu JPY ¥3,395.00 1,747.00 3,920.00 845,861 877,379 NA NA NA NA NA NA
Advertising/Marketing Median 1.3 x 1.2 x 8.6 x 8.0 x 2.7% 3.2%Advertising/Marketing Mean 1.3 x 1.3 x 8.5 x 7.9 x 2.9% 4.1%
9
The Advertising Market – At a Glance
www.pjsolomon.com
63 71
18
33 3
12
14
15
19
13
13
9
15
16
7
9 23
14 $177 $175 $182 $184
$194 $196
--
$40
$80
$120
$160
$200
2012E 2013E 2014E 2015E 2016E 2017E
$6.7 $6.9 $7.3
$7.7 $8.1
$8.6
--
$2
$4
$6
$8
$10
2012E 2013E 2014E 2015E 2016E 2017E
Emerging OOH Traditional OOH
Source: MagnaGlobal.
U.S. Out-of-Home Media Forecast
U.S. Advertising Spending Forecast
(Amounts in billions)
(Amounts in billions)
Directories / Direct Mail
Television Paid Search Online Video Mobile
Display Internet Newspapers Magazines Radio
Out-of-Home
10
The Advertising Market – At a Glance
www.pjsolomon.com
Source: Capital IQ and Wall Street Research.
Out-of-Home Valuation Trends (EV/LTM EBITDA)
Historical Out-of-Home EBITDA
(Amounts in millions)
6.9 x
12.9 x
10.6 x
7.4 x 7.3 x 6.7 x
12.0 x 11.1 x
8.7 x 10.0 x
7.7 x
9.9 x
11.6 x
9.8 x 10.0 x
--
2.0 x
4.0 x
6.0 x
8.0 x
10.0 x
12.0 x
14.0 x
2008 2009 2010 2011 2012
JCDecaux Clear Channel Outdoor Lamar
$481
$187
$289
$380 $378
$746
$536
$647
$745 $697
$521
$448 $465 $487 $514
--
$100
$200
$300
$400
$500
$600
$700
$800
2008 2009 2010 2011 2012
CBS Outdoor Clear Channel Outdoor Lamar
11
The Advertising Market – At a Glance
www.pjsolomon.com
Source: Wall Street Research and SNL Kagan.
Changing Composition of TV Station Revenues
Radio Station Ad Revenue Growth Projections by Region (2011A-2016E CAGR)
Pacific 3.98%
Mountain 2.94%
Upper Midwest
2.44%
Great Lakes 1.78%
Central Gulf
3.49%
Central South 2.27%
South Atlantic 2.74%
Mid Atlantic 3.59%
New England
2.71%
Ad Revenue 84%
Online7%
Retrans9%
Ad Revenue 74%
Online7%
Retrans19%
2006A 2013E 2018E
Ad Revenue 97%
Online2%
Retrans1%
12
The Advertising Market – At a Glance
www.pjsolomon.com
Upcoming Events
Dates Name Location Description
June 25-26, 2013 The TV of Tomorrow Show 2013 San Francisco, CA
Conference for pay-TV operators, consumer electronics manufacturers and technologists to engage in interactive and productive exchange of ideas
June 25-27, 2013 European Sign Expo London, United Kingdom
Demonstration of latest developments in visual communications channels including conventional signage, digital signage and out-of-home media
July 14-16, 2013 ANA Digital & Social Media Conference
Dana Point, CA Conference about social media, content marketing and “big data”
July 17-18, 2013 Ad:tech Melbourne Melbourne, Australia
Interactive advertising and technology conference and exhibition
July 22, 2013 CMO Strategy Summit Chicago, IL Exploration of innovative and creative tactics that allow marketers to get the most out of their budgets
September 4-6, 2013
Shanghai International Digital Signage & Touch Technology Show
Shanghai, China Platform of showcasing, networking, idea sharing and market trend understanding of digital signage world
September 9-12, 2013
Content Marketing World 2013 Cleveland, OH Focus on managing content marketing and ROI of content marketing
September 11-12, 2013
Ad:tech London London, United Kingdom
Interactive advertising and technology conference and exhibition
September 18-20, 2013
RadioShow Orlando, FL Conference organized by National Association of Broadcasters and Radio Advertising Bureau about radio’s future and new technologies affecting radio industry
September 18-19, 2013
7th Sigital Signage Conference 2013 Munich, Germany
Exploring various outdoor signage installations
September 23-27, 2013
Advertising Week New York, NY Over 200 distinct events that gather the world’s premier marketing and communications leaders
September 24-26, 2013
Outdoor Writers Association of America Conference
Lake Placid, NY Networking and informative event for outdoor communicators and outdoor groups
September 25-27, 2013
PNA Advertising Conference Seven Springs, PA
Information sessions concerning optimal online sales efficiency and incorporating social media into advertising plan
13
The Advertising Market – At a Glance
www.pjsolomon.com
Upcoming Events (cont’d)
Dates Name Location Description
September 26-28, 2013
NAB Small Market Television Exchange
Phoenix, AZ Leadership and sales training strategies for television industry
October 3-6, 2013
ANA Masters of Marketing Annual Conference
Phoenix, AZ Conference focused on learning and engaging with leaders of the marketing community
October 21, 2013 Billboards Unplugged New York, NY Conversation regarding future of billboards
October 22-25, 2013
Online Marketing Summit Silicon Valley, CA
Direct, hands-on training workshops about online marketing
October 23-24, 2013
DailyDOOH Investor Conference New York, NY Showcase of key technologies that are enabling new markets and impacting global display ecosystem
November 4, 2013
Ad Operations: IAB Summit New York, NY Conference exploring challenges and solutions in a multiscreen world
November 4-7, 2013
SES Chicago Chicago, IL Expo providing marketing professionals, brand advertisers, agencies and business leaders with knowledge and tools to deal with dynamic digital landscape
November 6-7, 2013
Ad:tech New York New York, NY Interactive advertising and technology conference and exhibition
If you wish to subscribe/unsubscribe to The Advertising Market – At a Glance, please contact: Jason Liao
Analyst 646.708.8460 [email protected]
14
PJSC Overview
www.pjsolomon.com
Providing Sound, Unbiased Advice to Clients for 25 Years
Focused advisory business, providing high-quality advice and execution, free from conflicts of interest
Founded in 1989, Peter J. Solomon Company (PJSC) is one of the original independent investment banks and financial advisory firms with approximately 75 professionals
PJSC is a trusted advisor to chief executives, principal shareholders, Boards of Directors and Special Committees
PJSC develops long-term client relationships based on trust and independent advice
Our senior bankers bring knowledge and experience to each client matter and are involved in each engagement
PJSC is at the forefront of media, technology and retailing, with a focus on distribution of
goods and services, via both traditional and online channels
PJSC has completed over $175 billion of M&A,
restructuring and financing advisory assignments
PJSC is a truly independent advisor and does not
underwrite or trade securities, publish research, manage or
invest capital
PJSC focuses on a diverse set of industry verticals including
Media / Technology, Retail / Distribution, Consumer
products and Healthcare
Mergers & Acquisitions
Financial Opinion Practice
Restructuring / Recapitalization
Financing and Capitalization
Advisory
Special Committee
Practice
Family Business Advice
PJSC