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SUMMER 2012 PS Worldwide NFC: What Lies Ahead? We canvas industry opinion We increasingly talk about the connected consumer, and of convergence. One of the key drivers of this convergence – and one of the technologies that will make consumers even more connected – is NFC. We’re familiar with the many benefits that NFC contactless technology is already bringing to the consumer, propelled in the main by its integration into smartphones. And for the advertiser, NFC allows quick, simple, scalable and affordable interaction between mobiles, poster site and ultimately their brand - lots of boxes ticked. NFC goes far beyond simply serving as a proxy wallet. We can think of it as a gateway to a whole host of rich mobile content and new experiences, itself the springboard to new levels of consumer engagement. To us this suggests that NFC stands a good chance of emerging as the dominant technology in the mobile area, but it’s important to consider both the barriers and drivers which will ultimately determine its success. It’s a theme that Posterscope explored recently at the SXSW festival in Texas and here we canvas opinion from industry leaders. Miles Quitmann, Managing Director Proxama is keen to underline the variety of potential uses for the technology: “NFC has so many potential applications; voucher and coupon distribution for brands and retailers is an obvious one. Picking up a voucher in store, or, for example, at a bus shelter for redemption in a local store, drives footfall and sales.” Quittman believes that NFC for brands and retailers needs to be transactional – an opportunity to drive sales - and cites the following examples; “Enter a coffee shop, tap a poster to immediately connect to the local Wi-Fi facility without the pain of having to enter IDs and passwords, or pay for your parking by tapping a poster, connected to a payment card, or even book a hotel room over the internet and use your NFC enabled phone as the access control/room key.” However, Quitmann also warns that “Unappealing content could slow the growth of NFC as an engagement technology. NFC should be magical, more than an updated version of cumbersome QR codes. A single tap should send the consumer directly to the most engaging content and enable them to keep the content or voucher for later use.” News and opinion from Posterscope, the world’s leading Out-of-Home communications network “Hero ideas create a virtuous circle of increased interest, investment and engagement” SUMMER 2012 When questioned about “ownership” of NFC technology, Quittman adds “Things may look very different in two years’ time. I think there will be lots of posturing from the likes of Google and many network operators – these businesses have made it clear they are keen to be seen as the new wallet owners. The banks seem to be relaxed about being a standalone application or forming part of a third party wallet. It is quite possible that the largest retailers will decide to move into the wallet-owning space – a Tesco or Sainsbury’s Wallet? - these giants might well think that now is the time to move into the payment space more vigorously by launching their own closed-loop payment platforms and capitalise on the current poor bank PR. The obstacles are beginning to be dismantled – Apple is launching iWallet (barcode and QR codes based now, but NFC based in the future) and the banks are launching NFC prototypes today. The market will be fragmented in the short term, but expect to see much consolidation in the longer term.” Michael Nicholas, Chief Strategy Officer Isobar, suggests that we need to think very carefully about the consumer benefit. “The question I always ask is: do we really have a credit card problem? Are they too heavy? Do they take up too much space? Do people sit around and think “cash is such a difficult thing to use”? I don’t think that they do. To top it off there is a lot of data pointing toward people not trusting

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SUMMER 2012

PSWorldwide

NFC: What Lies Ahead?We canvas industry opinionWe increasingly talk about the connected consumer, and of convergence. One of the key drivers of this convergence – and one of the technologies that will make consumers even more connected – is NFC.

We’re familiar with the many benefits that NFC contactless technology is already bringing to the consumer, propelled in the main by its integration into smartphones. And for the advertiser, NFC allows quick, simple, scalable and affordable interaction between mobiles, poster site and ultimately their brand - lots of boxes ticked.

NFC goes far beyond simply serving as a proxy wallet. We can think of it as a gateway to a whole host of rich mobile content and new experiences, itself the springboard to new levels of consumer engagement.

To us this suggests that NFC stands a good chance of emerging as the dominant technology in the mobile area, but it’s important to consider both the barriers and drivers which will ultimately determine its success.

It’s a theme that Posterscope explored recently at the SXSW festival in Texas and here we canvas opinion from industry leaders.

Miles Quitmann, Managing Director Proxama is keen to underline the variety of potential uses for the technology: “NFC has so many potential applications; voucher and coupon distribution for brands and retailers is an obvious one. Picking up a voucher in store,

or, for example, at a bus shelter for redemption in a local store, drives footfall and sales.” Quittman believes that NFC for brands and retailers needs to be transactional – an opportunity to drive sales - and cites the following examples;

“Enter a coffee shop, tap a poster to immediately connect to the local Wi-Fi facility without the pain of having to enter IDs and passwords, or pay for your parking by tapping a poster, connected to a payment card, or even book a hotel room

over the internet and use your NFC enabled phone as the access control/room key.”

However, Quitmann also warns that “Unappealing content could slow the growth of NFC as an engagement technology. NFC should be magical, more than an updated version of cumbersome QR codes. A single tap should send the consumer directly to the most engaging content and enable them to keep the content or voucher for later use.”

News and opinion from Posterscope, the world’s leading Out-of-Home communications network

“Hero ideas create a virtuous circle of increased interest, investment and engagement”

SUMMER 2012

When questioned about “ownership” of NFC technology, Quittman adds “Things may look very different in two years’ time. I think there will be lots of posturing from the likes of Google and many network operators – these businesses have made it clear they are keen to be seen as the new wallet owners. The banks seem to be relaxed about being a standalone application or forming part of a third party wallet. It is quite possible that the largest retailers will decide to move into the wallet-owning space – a Tesco or Sainsbury’s Wallet? - these giants might well think that now is the time to move into the payment space more vigorously by launching their own closed-loop payment platforms and capitalise on the current poor bank PR.

The obstacles are beginning to be dismantled – Apple is launching iWallet (barcode and QR codes based now, but NFC based in the future) and the banks are launching NFC prototypes today. The market will be fragmented in the short term, but expect to see much consolidation in the longer term.”

Michael Nicholas, Chief Strategy Officer Isobar, suggests that we need to think very carefully about the consumer benefit. “The question I always ask is: do we really have a credit card problem? Are they too heavy? Do they take up too much space? Do people sit around and think “cash is such a difficult thing to use”? I don’t think that they do. To top it off there is a lot of data pointing toward people not trusting

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mobile payments just yet. This is horse-before-cart in my opinion; we need to embrace the real benefits of “what you touch is what you get” in a low-risk way to ease a transition and lower the barrier of adoption. Right now this wallet push by banks and carriers seems to be more about them than about consumers.”

In order for NFC to be adopted into the mainstream, Nicholas believes that “NFC interaction should be made fun and informal first and foremost - that’s why gaming and entertainment are such nice fits. They help people to understand the ‘metaphor’ so that they ask themselves “Wouldn’t it be great if I could do this with everything?” And when they start thinking this way, there are few limitations to what the consumer will then grant us permission to do with NFC.

Furthermore our goal shouldn’t simply be to move everyone towards NFC as quickly as possible – rather it should be to deliver awesome brand experiences to people.

But ultimately it’s the tangibility of an NFC interaction that will prove one of its most compelling benefits – unlike QR codes, it’s a very natural interaction, very easy to understand, with a very low learning curve” suggests Nicholas.

Stephen Bedggood, NFC Product Manager O2 stresses the versatility of NFC. “Everyone talks about NFC being used for contactless payments, but it is far more than that. NFC has been used for Transit for many years now and this is probably the number one use case in nearly all developed countries. Here in the UK, the most well known deployment is the Oyster Card which sees over 2 million journeys made each week using the card.

NFC is also used in museums and at tourist attractions, allowing people to further interact with the world around them, for example, finding out more about an object in a museum or perhaps viewing video content about that object.”

Bedggood also emphasises the need for content to be appealing; “Simply linking to a company’s promotion on a website is not engaging and not providing that consumer with a memorable experience. An example of a positive experience might be turning the SMS-based parking experience into one where I tap a sticker which launches a location-based parking app, knows my registration and payment details and allows me to enter how long I want to stay. Or, alternatively, being able to tap a wine bottle in a shop to access recommendations of which food it best accompanies, provide other drinkers’ reviews and allowing me to review the bottle. These could be delivered via QR codes too, but so far it hasn’t been done successfully.”

Bedggood believes that the debate surrounding ownership has an upside in so much as they are forcing those parties involved to address some serious questions; “There are ongoing discussions regarding the battle for ownership – some healthier than others. The healthy battles are driving serious consideration as regards customer servicing, liability and best practice for consumer choice. If it were a free-for-all with open access to the secure keys, who would be liable for a fraudulent transaction if something went wrong? Who would they call - the internet giants, their bank, their mobile operator or the handset manufacturer? Can the internet giants provide the UK call centres to support customers in the same way that operators can? What happens if we end up with a different wallet app for every bank and every loyalty card we have today? No consumer would want to use it as they would have to switch between this app and that app to use this loyalty card with that payment card. In the end, collaboration between operators and between banks is healthy as it drives the answer to these questions and offers the consumer choice.”

Jean-Paul Edwards, Executive Director, Futures Manning Gottlieb OMD takes the view that unappealing content could seriously slow the growth of NFC. “All media runs this risk but NFC will need some hero ideas to gain traction for the channel and to illustrate techniques and value that would not have been possible previously.” He also states that “NFC needs to be open-source

with non-interoperable systems likely to stifle consumer adoption.

When asked the question about the educational challenge for NFC, Edwards responds “Like all innovation it will spread through the network of potential users. Initially we need to look after the innovators, the first 3% who will buy just because it is new; we need to deliver messages for appropriate brands in appropriate contexts. IT trade fairs will attract early adopters who will have differing needs and interests - the brands and contexts should evolve with them. Hero ideas that create real value are critical to create a virtuous circle of increased interest driving increased investment driving increased engagement.”

So, despite some common concerns, our contributors appear unanimous in their view of the positive potential of NFC, a view that we share here at Posterscope. There are undoubtedly some sizeable obstacles ahead which the market must overcome in order to offer the consumer the most user-friendly NFC experience, be they content, ownership or logistics-related. But with so many stake-holders with their eyes on the NFC prize we are confident that there is sufficient momentum to drive this through successfully, and where the curious and contented consumer goes the smart advertiser soon follows. Interest in NFC is growing fast for all of these reasons and given the technology’s natural synergy with Out-of-Home we are hopeful that the new opportunities they collectively represent will encourage new investment in the medium.

“We need to embrace the real benefits of ‘what you touch is what you get’.”

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Opinion I’ll show you mine if you show me yours

The changes that have occurred in the OOH medium over the past few years have put us in an intriguing position.

On the one hand, OOH has a rich heritage. As one of the “traditional media” - indeed, the oldest medium - we have a long and impressive track record that we can point to. Posters work. They have done for centuries.

On the other hand, the newer formats being developed in OOH, and the way they connect smartphone-carrying consumers with other media, make OOH one of the most future-facing of all media.

Those of us who work in OOH are keenly aware of this. But those who don’t deal with the industry on a day-to-day basis may not be so aware of the technological changes that have changed the face of our medium. They may more readily think of the “traditional” side of the medium, rather than the cutting-edge side of it.

So I think the OOH industry faces a big question right now: do we want to be associated with the past, or do we want to be associated with the future?

The reason this is such a big question is because industries - as we know - follow a ruthless, Darwinian trajectory. The dinosaurs die out. Very quickly. You adapt …or you’re gone.

So, although there is a lot that’s very positive about OOH’s past, and while traditional posters remain a very powerful part of any marketing armoury, I think there’s only one answer to this question. We need to be associated - in the minds of clients and media planners - with the future.

Media planners have a natural affinity with the future. They’re looking for something new and different to excite their clients. If you’re looking for new and different, you don’t go

Posterscope is the World’s leading Out-of-Home communications network.To find out more, contact:Annie Rickard President, Posterscope Worldwide [email protected] Pershin CEO, Posterscope Russia [email protected]

looking in a box marked “traditional”. If they perceive OOH as an old or traditional medium that could quickly become a problem for us. A big, Darwinian problem.

We need them to perceive OOH as new and different. Or, at least, we want them to understand that if they’re looking for something new and different, OOH would be a worthwhile place to look. So we have to associate our medium with the future.

Fortunately, I think we can do this. The groundwork has been laid by the investment in new formats. The technology exists for both new and older formats to play an integral role in influencing today’s connected consumer.

We are part of the future. But to make sure we’re perceived as such we need to take every opportunity to behave like a new medium, not like an old one.

One area where we can clearly do this is in rethinking our attitude to data and knowledge. How do new media behave in this regard? They share. They take an open-source attitude.

Traditionally we don’t share. We regard data and knowledge as something that might offer a competitive advantage. So we keep it to ourselves and guard it jealously.

This is an outdated attitude, it’s a traditional attitude, and it will perpetuate media planners seeing us as a traditional medium that behaves in traditional ways.

If we can start to behave more like new media companies - and throw our data out there for everyone to use - the benefits to our medium overall will surely outweigh the marginal benefits for an individual company of keeping things to themselves. Because it will firmly establish us as a forward-thinking medium in the minds

of the people who are in a position to spend more money with us.

We need to share our insights and data about how consumers behave in this new, connected economy. We need to move towards genuine real-time planning and we won’t get there by acting selfishly as individuals; but we can get there working together.

It will require a huge cultural shift to start sharing, of course. We’re used to treating all of this data as marketing collateral; but if we can make this change, and start to work together to develop the insight, the benefits will be there for all of us.

We will be giving a new generation of media planners what they want - better insight, better measurement. If we have an opportunity to make media planners’ lives easier - and we don’t take it - we’re missing a trick.

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100% recyclable.Packaged in 100% biodegradable film.

SUMMER 2012

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1 NIVEA To put a spin on NIVEA’s traditional New Year’s Eve Times Square takeover, Posterscope USA developed a convergent concept. This allowed consumers in Times Square to directly engage and interact with the brand, via a digital spectacular and prime location engagement balcony, the flagship Aeropostale store, a brand with a similar target and messaging. The balcony was turned into a ‘kissing booth’ overlooking the heart of the square, creating an unforgettable photo-memory opportunity for consumers. People in the area could get their ‘NIVEA kiss’ picture taken in the booth and afterwards see their image on the giant digital spectacular outside the store, via a live feed. Those who got their photo taken received free NIVEA lip balms and could retrieve their pictures via a dedicated Facebook page.

2 Coke Chinese New Year, The Spring Festival, is the biggest and most important festival for the Chinese, when families get together and send good wishes to their families and loved ones. In order to position Coke as the iconic CNY brand in 2012, Heartland-Posterscope created an innovative campaign, targeting Chinese youth, enabling them to send their best wishes to friends and families via OOH sites - 39 shelters in 11 markets in different tier cities and 1 mega LED. Participants sent their greetings to a mobile web site which were then downloaded in seconds onto the screens. The participants would then receive an SMS message with a web address which allowed them to download the screenshot of their text. In total around ten thousand consumer wishes were displayed.

3 Veikkaus a Finnish Lottery company, enhanced their national 6 sheet campaign with an innovative ‘talking bus stop’. The campaign, created by Posterscope Finland, was for Veikkaus to thank the Finnish people, who by playing their games, play a significant role in helping over 1,000 beneficiaries (most of the money goes to the Finnish state to finance Finish arts, sports, science and youth works by the Finnish Ministry of Education), and to communicate to the public the daily €1.1 million lottery revenue for Finnish society. The talking bus stop allowed a real-life connection between the public and a famous comedian, with the amusing interactions being filmed and placed on YouTube. Both the campaign and the talking bus stop were a huge success generating higher than normal ad recognition levels.

4 20th Century Fox Imagine waking up every morning, knowing that you have only 23 hours before your life will be in great danger. To promote the film ‘In Time’, just prior to the official premiere, Posterscope Poland created an engaging campaign in some of Warsaw’s coolest clubs. Participants were encouraged to take part in ‘the race against time’ in the Mono Bar, De Lite, Hunters, Carmel and the Capitol. Once there, guests were exposed to B2 posters, projectors showing film trailers, and life-size character ‘stands’ with the title of the film and the date of the premiere. In addition they received ultraviolet stamps on their wrists and arms and special numbered ‘race against time’ drinks with florescent ice cubes, whilst the DJ’s interspersed songs from the soundtrack with music from the evening programme.

The Work Campaigns from around the Worldwide network

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5 Nokia To launch Nokia’s new windows phone and reposition the brand to a younger audience through the Amazing Everyday Communicat ions platform, Posterscope Spain created a large, innovative and integrated campaign with activations that surprised and engaged the target in everyday situations, turning an ordinary day into an amazing day. It involved street marketing events in different universities, including converting press kiosks into DJ booths; innovative technologies in bus shelters using interactive displays; dominations in Madrid and Barcelona metro stations, tailoring the theme of the design to the station’s name; experiential marketing where Nokia paid the lunch bills of clients in selected restaurants; and shop windows branded with Nokia Lumia displays. It was a huge creative exercise and a massive challenge in terms of production, coordination and implementation. Nokia sales increased during the campaign and a lot of WOM was generated across different media.

6 Reebok To create high levels of awareness and ‘buzz‘ amongst existing and potential consumers of Reebok EasyTone trainers, Posterscope India created a media first, a digital Out-of-Home campaign which involved an interactive LED screen linked to an SMS gateway. The campaign was to promote the message that a woman can ‘unveil’ a great new body by using Reebok EasyTone gear. The creative showed a partially visible girl, wearing a pair of EasyTone trainers, which changed via the use of live feeds, with a bit more of the girl revealed immediately every time a person sent an SMS, so that finally the whole story falls into place. Due to the innovative nature and the premium positioning of the site, a huge LED outside Select City Walk, a leading mall in New Deli, Reebok received a great response, with over 4,500 SMS’s in the first three days.

7 MINI To engage consumers and increase the number of fans on their recently launched MINI Facebook page in Belgium and Luxemburg, Posterscope Belgium created a social spectacle combining the real and digital worlds. In the parking lot of the Brussels Motorshow, a MINI Countryman, held only by a thick rope, was placed on a 15 degree slope, while a Bunsen Burner was placed under the rope. Whenever a fan ‘liked’ the Facebook page they remotely generated a burst of flame onto the rope in real-time. The fan whose flame ultimately broke the rope won the car. A webcam broadcasted the scene around the clock.

8 Resia To raise brand awareness and engage Resia’s target audience, Posterscope Sweden created a national OOH campaign featuring almost 3,000 6 sheets and QR-codes. The campaign asked consumers to engage with the poster by participating in a competition to win €1,700, and a simple message was communicated in order to increase the awareness and engagement of the brand. To activate the outdoor sites, users simply scanned the QR code with their smartphone. In total almost 3,800 scanned the QR code and over 1,500 participated in the competition.

9 Disney To celebrate the launch of the new Avengers Assemble movie, Posterscope UK created a live art experience in London’s trendy Old Street. Over the course of four days, artists painted the eight iconic Marvel characters on to a 96 sheet poster site. The order in which the characters were painted depended upon the public vote, which was facilitated by Twitter. Fans could tweet who they wanted to see created on the billboard by tweeting a unique # tag, one of which was created for each character. The project, broadcast live online, clocked upwards of 1 million viewing minutes.

SUMMER 2012

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Q. Given your mainly creative agency background, with its upstream image, and coming into outdoor with its more traditional image as you did a few years ago, with all the changes in the medium and peoples’ lifestyles, they’re probably closer together than the reader might think. What do you think and what does the change mean to you?

Anyone who spent their formative years in a creative agency will have developed a love of the poster. It’s the purest form of advertising and the ultimate test of a great idea is whether it works on a 48-sheet. Clear Channel is, at its heart an advertising business and my background has helped me emphasise and give meaning to that, in maintaining our absolute focus on building an effective platform for advertisers.

OOH is a medium that is more alive than ever with creative possibilities. Last year, we created a campaign with the strapline ‘Outdoor is back in’ to challenge any lingering misconceptions. A perfect storm of social and consumer trends, amplified by the creative possibilities of digital technology, presents us with the opportunity to reinvent our medium.

This year, we are launching a new strapline ‘Where brands meet people’, encapsulating the real advantage of a large, diverse portfolio like ours to collaborate with advertisers on powerful OOH campaigns, drawing on our insights into location and audiences, and coming up with new ways of starting conversations with people on the move.

These advertiser connections

with people will help grow their businesses, promote the power of OOH and continue to build our world-class position.Q Given what you’ve said, do you think the creative community are fully exploiting these opportunities? Do you have a message for them?

We support the Cannes Lions as part of our commitment to championing great creativity. As a pure-play advertising medium, the quality of the creative plays a fundamental role which, when combined with context, timing and audience insight, leads to truly effective OOH campaigns.

In Cannes last year, I spoke about the creative community failing to take advantage of our medium’s true capabilities. If you look at digital as an example, television or film content is too often transferred to digital sites without thinking about the real opportunities the medium offers.

We hate to see our medium misused, or not fully exploited.Conversely, there’s nothing better than seeing boundaries expanded.

By the end of this decade we are looking at significant adoption of digital. The question is how do we get from here to there? Answer, investment from commited media owners, but also the need for

creatives to truly embrace it so that it becomes the norm.Q. So now turning to your new position, in a global communications world the integration of Clear Channel’s US and international businesses is obviously significant. What experience will you bring to help grow the medium in the US? Where will you set your ambition?

It’s a very exciting challenge, but more importantly a great opportunity for our business to get real benefit from its global scale and talent-base. Working across more than 30 countries at Clear Channel International means I have seen first-hand the tremendous opportunities in the OOH marketplace and the value of developing and sharing expertise. But I am sensitive to the real differences that exist and opportunities to collaborate.

In my first few weeks, I’ve been quickly getting to grips with the quality of our US portfolio, operating in 19 of the top 20 US markets and reaching over 60% of the entire adult population every month – that’s 141 million consumers. Add to this scale our Times Square Spectacular sites and our airports inventory, and you can understand why I’m excited. Our digital strategy has also been

a spectacular success and we’re unquestionably leading the market in the transformation of our industry.

However, OOH has a relatively low share of ad spend compared with what I’m used to and I want to address that, working with our sales and marketing teams to bring new money into our sector, whether national, regional or local sales. This will be one of my key messages in 2012.

Overall, our two organisations, Clear Channel International and Clear Channel Outdoor Americas, have much to share and learn from each other and I will be focused on creating additional value out of the synergies between them, enhancing them with a closer partnership with our other division, Clear Channel Media & Entertainment.

In a first-of-its-kind worldwide campaign, we all worked together to help Madonna launch her new single “Gimme All Your Luvin’’. By combining our dynamic digital outdoor networks with broadcast radio, online and mobile via iHeartRadio, we reached an incredible 150 million people globally. As well as generating extensive international press coverage and social media buzz, the campaign was also credited with breaking the iTunes one day pre-order sales record to send the single to number one in 50 countries. Perhaps the most important outcome though, was that the campaign demonstrated our ability to run seamless global campaigns across our platforms. There has to be a lesson in that!Q. With Clear Channel and Decaux now two fully integrated international majors in OOH sales, can you use your

William Eccleshare

The BigInterview...

“Out-of-Home is a medium that is more alive than ever with creative possibilities.”

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combined resource and influence to drive universal, accessible and tradable audience research in all significant markets? Do you buy into the value of this?

I absolutely buy into it. We are fully committed to working with all stakeholders to develop long-term joint industry research across our network. We also want to continue to work with our partners to help advertisers fully understand the audiences we can deliver. We’ve seen examples across the world - most recently in Australia with MOVE - of how quality data can drive OOH share of market. Our commitment is absolute.Q You’ve been quoted as saying that 90% of all OOH inventory will be digital by the end of the decade. Others have been more cautious. Who’s right?

I am! What I actually said is that in certain markets and key segments 90% of OOH inventory will be digital by the end of the decade and if anything, this is an underestimate given our progress so far.

In Q4 2011, we focused on transit, launching a nationwide digital rail network in Belgium, together with a network in the Stockholm metro. Recently, we have also launched nationwide mall offerings in Norway and critically in France, where we are now the biggest digital operator.

Importantly, we’re also the only global player to have taken digital truly ‘outdoor’ - our digital billboards in the US now reach more than 50 million people per week. And now we’re focusing

on bringing digital to 6 Sheet street furniture with networks already covering London, San Francisco, Washington DC, and soon Chicago.

At the end of last year, we also launched Clear Channel Play – a sub-brand representing our dedicated digital portfolio, which is all about our digital ambition, investment and integrating new technology into our medium.Q. NFC will deliver a step-change in connecting the digital and physical worlds and truly transform the interactive capabilities of OOH. What do you think it will mean to your business as first, second and third world markets get there together?

On 28 November in London we launched Europe’s first NFC-enabled digital street furniture network delivering 10.8m impacts per week. Our business in Singapore was also the first-in-market with an island-wide network of mobile-enabled bus shelters.

Through these new networks we can transform an advertiser’s brief into a deep and engaging experience, provide a mobile platform that allows advertisers to display customised messages on mobile devices, activate a poster campaign digitally by turning each site into a launch pad to other online channels, build on consumers’ mobile content consumption behaviour and allow advertisers to mine actionable consumer data, such as number of users, uniqueness of profiles and response rates. NFC enables us to become a transactional medium and that is potentially

transformative.However, we see NFC as just one way to

create the link between outdoor and mobile devices and we can already see the differences in the technologies people adopt between different markets. It’s also not always the developed markets showing the way - in Kenya and India, for example, they are far in advance of Europe in using mobile wallets.

We have taken a significant step in understanding how people want to interact with mobile technology by working with Posterscope on a study conducted in the UK and USA, consisting of almost 1,000 online interviews with smartphone owners. This looked at a number of technologies on their devices including: Quick Reader (QR) codes, Mobile Bluetooth, Barcode Scanner, Augmented Reality, Visual Search, NFC and Mobile payments.

For NFC in particular, 54% of respondents stated that using NFC technology to interact with posters would be useful, but what is clear is that we’re still in an early adoption phase.

If brands want to meet people out-of-home they don’t want to waste their time – we all need to remember the key principles of understanding who the target audiences are, what they are doing on the move, how they feel and how and when they want to start a conversation. Then we can apply the right technology to ensure we make the most of the transformational opportunity mobile provides for our medium.

SUMMER 2012

After graduating from Cambridge, William has spent his career in advertising. He has been CEO of JWT in London and Amsterdam, Lintas UK, and Chairman/CEO of Y&R and BBDO in Europe. He also spent three years as a Partner at McKinsey, leading the firm’s European Branding Practice. In 2009 he became President and CEO of Clear Channel International, and in January 2012 was named CEO of Clear Chanel Outdoor with responsibility for the company’s OOH assets globally.

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FocusThe Out-of-Home market in Russia

on Posterscope Russia

SUMMER 2012

According to AKAR research, advertising market spend in Russia increased by 15% in 2011 versus 2010, up to RUB 38 billion (including printing expenditures). Out-of-Home’s market share is 12% of this total. Roadside facilities dominate with 82% of the total OOH spend (within this the most popular format is the 6x3 billboard at 57%); 8% is subway and transit advertising; 7% indoor; and 3% digital Out-of-Home. Moscow is still the main market.

Moscow’s OOH advertising market dominates, with a 49% share of total Out-of-Home sites. However, commentators have discussed the projected decrease in the Moscow market that will be caused by a 20% inventory reduction during the next year, restrictions on the placement in city central areas, and new rules on the market, etc. The Moscow government has a plan to reduce the volume of OOH advertising by 40% in the city centre by 2016. Placement price is growing

In general, the period of extensive market growth is ending, and the value of the OOH market will grow as a result of OOH prices rising by around 10%. Amendments to the Federal Law on Advertising, regional legislation initiatives (e.g. five-year contracts with OOH contractors), will also hold back market development. The most extensive Digital OOH developments in Russia are concentrated in the big cities – in Moscow the number of digital screens increased by 13% in 2011. Advertisers are looking for a medium that is flexible, provides quality and engages the consumer.

Digital OOH may well be the answer to this in many circumstances, and has huge potential to expand in Russia.Advertisers may change their expenditure ranking positions

Out-of-Home is one of the key media channels for retail, financial, banking, mobile and realty sectors. According to a Posterscope Russia forecast, in 2013 Telecom and Travel will see minor growth but will still have significant share, whilst Retail, Banks and Real Estate will be the major growth drivers in 2013. The introduction of the prohibition of beer advertising using OOH, commencing July 2012, will unfortunately force brewers to relocate their media budgets.

A fragmented marketThe Russian OOH market is

very fragmented, with over 1,000 contractors. The main contractors’ shares have, however remained the same – 37% Russ Outdoor (the rebranded News Outdoor), Gallery, BigBoard/JCDecaux, VERA Olymp, etc. At the same time, we are discussing opportunities of starting a DOOH survey in Moscow and other main regions. This project was carried out in collaboration with industrial community, and together with key market trends, will be top of the agenda at the ‘Outdoor Day’ conference we are holding this Autumn.Posterscope Russia activities

Posterscope Russia is the leading

OOH expert in the market. It boasts an enviable track record, combining local expertise and strong client service delivery, with global capabilities and tools, including the world-class OCS - Posterscope’s OOH Consumer Survey, based on a representative sample of over 2,600 adults in Russia, focusing on their out of home activities, and attitudes, and opinions of advertising in different environments. And, most importantly, their moods and mindsets in these different environments.

Currently, we are developing the Posterscope Worldwide tools, Prism Plan and Prism Effect, for launch in our market, taking into account the characteristics of the market.