Special Issue: OOH Facts + Figures May 7, 2018

May 20, 2019

OOH Growth Continues Amid Traditional Media Declines

Strongest Quarter in 10 Years for OOH average of 2.5
The fourth quarter of 2018 produced the percent annu- OOH Ad Spend 2009 - 2018
(billions)
strongest quarterly growth for total me- ally over the next 9.0
dia ad sales in 18 years (almost +12%). five years. The 8.0 7.6 7.7
8.0

The winners in 2018 were OOH (+4.5% success of OOH 7.0 6.4
6.7 6.9 7.0
7.3

to $8 billion) and paid search (ad sales is largely due 6.0

5.9 6.1

up +23% to reach $54 billion). OOH had to innovation 5.0

its best quarter in more than a decade in technology 4.0
(+7.2%), partly due to the significant (digital units, 3.0
increase of ad spend from the technol- audience mea- 2.0

ogy sector. OOH is the only linear media surement), plus 1.0

type to experience consistent organic sales and mar- 0.0

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
revenue growth. keting efforts.
OOH has also Source: OAAA

35 Consecutive Quarters of Growth
OOH experienced increases in all four
primary formats – billboards, street fur-
niture, transit, and place-based. Among
the top revenue categories, those with
the greatest growth increase in 2018
included Government, Politics and
Organizations +14.6 percent; Insurance
and Real Estate +14.6 percent; Schools,
Camps and Seminars +13.2 percent;
Miscellaneous Local Services & Amuse-
ments +8.2; Retail +6.6 percent; and
Financial +6.2 percent.
Digital OOH is the Biggest Driver
OOH will continue to be the only tradi-
tional media format to show growth in
2019, and MAGNA expects it to rise by
+2.6 percent during the year. Digitiza-
tion is leading the growth for total OOH,
and digital OOH represented 29 percent
of the total in 2018. MAGNA projects an
been largely immune from the decline in
reach and/or consumption that affects
television, print, radio and even digital
display media to various degrees, espe-
cially among younger audiences.
Other factors impacting OOH’s future
success include:
OOH reach and audience are holding.
Contrary to all other traditional media
categories, OOH reach and audience has
not declined in the last 10 years. Cam-
paigns are viewable and they cannot be
skipped and cannot be blocked.
Audience measurement keeps improving.
In the last 10 years, audience mea-
surement has evolved from measuring
“opportunity to see” to actual impres-
sions, to qualified impressions. OOH is
providing a level of accountability that is
comparable to television and digital.
Creativity. Both static and digital OOH
media attract some of the best creative
work in advertising, and the rise of
digital has not reduced or diverted talent
from static creative.
OOH is affordable. OOH is the second
most affordable medium in the US, after
online display, according to PJ Solomon.
Digital inventory increases yield (reve-
nue per location). When an existing OOH
unit is converted to digital, the revenue
of the location is almost immediately
multiplied.
Digital attracts new categories of
advertisers. The technology sector has
dramatically increased spending in OOH,
partly due to digital offerings. Other
fast-growing categories include Direct-To-
Consumer and Cannabis.
Sources: MAGNA, Kantar Media

8.8 percent increase for digital OOH in

2019, or more than triple their projected
increase of 2.6 percent for total OOH.

Tech Brands Lead the Way

Of the top 100 OOH advertisers in 2018,
one-quarter were from the technology
sector and include the FAANG business-
es (Facebook, Amazon, Apple, Netflix,
and Google). Apple assumed the top
position for the first time.

OOH Future Looks Strong

OOH net advertising revenue (NAR) grew
by an average 4 percent in the last five
years, while all other non-digital media
categories were flat (TV, radio) or declin-
ing (print). OOH is forecast to grow an Source: MAGNA March 2019 *Excludes cyclical events such as political, Olympics
 May 20, 2019 Page 2
February
April 30, 2012 7, 2011
Page 2

OOH 2018 2018 Top 10 in OOH Spending

Revenue by Advertiser Parent Company
Format 1. Apple 1. AT&T Inc
The four major categories of OOH 2. McDonald’s 2. Comcast Corp
advertising and their respective share 3. Geico 3. Berkshire Hathway Inc
of 2018 revenue are: Billboards (65%), 4. Netflix 4. Apple Inc
Transit (18%), Place-based (11%), and 5. Google 5. McDonald’s Corp
Street Furniture (6%). The billboard
6. American Express 6. Deutsche Telekom AG
category continues to dominate the OOH
landscape garnering a consistent two- 7. Metro by T-Mobile 7. Walt Disney Co
thirds of total OOH spend. 8. Amazon 8. Alphabet Inc
9. M&Ms 9. Molson Coors Brewing Co
In 2018, the place-based category 10. Chevrolet 10. Amazon.com Inc
posted the greatest increase over 2017 Source: Kantar Media
with growth of 6.8 percent, followed by
street furniture +5.6 percent, billboards
+3.6 percent, and transit +1.9 percent.
2018 Top 10 OOH Account Increases by $
2018 Ad $ Increase
Advertiser
Spend (000) over 2017
2018 Total OOH Revenue:
$8 Billion Facebook $30,770.2 $27,469.4
Allstate $13,986.5 $13,163.3
Place-Based
$928.1 Billboards Metro By T-Mobile $38,217.6 $12,528.4
11.6% $5,187.2
64.9%
M&Ms $31,789.6 $11,798.1
Uber $13,530.4 $11,738.9
Transit
$1,405.9 Netflix $40,808.8 $11,647.8
17.6%
US Army National Guard $13,326.7 $11,427.5
Pfizer $12,828.2 $9,394.6
Ford $20,678.9 $9,266.0
YouTube $13,987.7 $8,795.5
Street Source: Kantar Media
Furniture
$473.9
5.9% 2018 Top 15 OOH Account Increases by %
2018 Ad Spend Increase Over
Advertiser
Note: Figures in millions. Source: OAAA
(000) 2017 (000)
State Street Global Advisors $6,059.1 605,810.0%
Oculus $8,209.2 12,848.3%
2018 Top 10 Allstate $13,986.5 1,599.0%

OOH Categories Facebook

Uber
$30,770.2
$13,530.4
832.2%
655.3%
US Army National Guard $13,326.7 601.7%
Industry Categories OOH Spend
Warner Bros $9,334.0 589.1%
Local Services & Amusements $1,862,857.8 JP Morgan $7,142.2 428.4%
Retail $823,495.1
Media & Advertising $687,578.4
Crown Imports $7,146.4 299.1%
Restaurants $551,661.8 Pfizer $12,828.2 273.6%
Public Trans., Hotels & Resorts $535,671.6
YouTube $13,987.7 169.4%
Financial $495,696.1
Government, Politics, Orgs $455,720.6 Pepsi $14,745.4 132.4%
Insurance & Real Estate $455,720.6 HCA Hospital Corp Of America $8,797.6 121.7%
Schools, Camps & Seminars $311,808.8
Automotive Dealers & Services $303,813.7 Diageo $6,752.4 100.7%

Note: Figures in thousands. Source: Kantar Media, OAAA

DirecTV $7,920.7 169.7%
Source: Kantar Media
 Outdoor Outlook
May 20, 2019 Page 3

OOH’s Solid Performance in Total Media Landscape

ADVERTISING WILL GROW +4.1% IN 2019, +3.1% IN 2020

MegaBrands 2018
MegaBrands is a comprehensive
review of the largest national advertis-
ers. The report reviews the top 100
OOH advertisers and top 100 total
1.2% media advertisers, along with their
ad spend by medium, and ad agency
relationships.

Apple and McDonald’s retained the

top two positions for the sixth con-
secutive year, but Apple displaced
McDonald’s as the number one OOH
Source: MAGNA OOH Share of Overall Media Spend - 2018 advertiser for the first time since
OOH Newspapers 1999.
OOH SHARE OF OVERALL MEDIA
4.0% $8.0B 4.2% $8.6B
SPEND IN 2018
Magazines Of the top 100 OOH advertisers in
3.2% $6.4B 2018, 54 had increases in OOH spend
greater than the industry growth of
4.5 percent. The top 11 advertisers
included the entire suite of FAANG
Broadcast TV companies: Apple, Amazon, Facebook,
15.0% $30.5B Google and Netflix, highlighting the
value of OOH to some of the world’s
most valuable brands.
Digital
Of the top 100 OOH advertisers in
(Desktop/Mobile)
52.6% $107.0B 2018, one-quarter were from the
technology sector, and thirteen adver-
tisers more than doubled their OOH
investment in 2018. This list included
Cable TV Allstate, Crown Imports, Diageo, Face-
14.8% $30.1B book, HCA Inc., JP Morgan, Oculus,
Pepsi, Pfizer, State Street Global Advi-
Source: MAGNA, OAAA
Note - Digital media includes
sors, Uber, US Army National Guard,
search, video, social, display
Radio
and Warner Bros.
on desktop and mobile
devices 6.6% $13.4B
One-fifth of the companies appearing
in the 2018 top 100 were not in the
Source: MagnaGlobal, OAAA
Note - Digital media includes search, video, social, display on desktop and mobile devices. 2017 list including: Allstate, Crown
Imports, Diageo, DirecTV, Facebook,
HCA Inc., Hilton, Jet.com, Live Nation,
Nintendo, Oculus, Pfizer, P&G, Sales-
force, Showtime, State Street Global
Advisors, Uber, US Army National
Guard, Warner Bros, and YouTube.
Additional resources to assist with
ad spend analysis and prospecting
include:

2018 Local Ad Spend by Market and

Media Channel (top 101 markets)
2018 Product Category Ad Spend by
Month
2018 Product Category Ad Spend by
Media Channel
Outdoor Outlook
May 20, 2019 Page 4

US Ad Spend Share 2012 - 2023

Source: MAGNA
5-year Compounded Annual
5-Year Compounded Annual Growth Rate
Growth Rate Projection
Projection 2018-2023
(2018 - 2023)

15% 15%
13%

9% 9%

2% 3%

-3%
-6% -6%
-9%

-22% Source: MAGNA

-25%

OOH: Consistent, Steady Growth Through 2023

(billions)

10

1
Source: MAGNA

0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Traditional Digital Cinema

Outdoor Outlook
May 20, 2019 Page 5
Page 3
February 7, 2011

Top Ad Spend Markets

2018 Top 50 Markets 2018 Top 50 OOH Markets by 2018 Top 50 OOH Markets by
Overall Ad Spend Ad Spend OOH Share of Local Ad Spend
OOH Ad Spend OOH % of Local
Rank Market Market (000) Market Market Ad Spend

1 New York New York $762,901.8 Harrisburg 26.5

2 Los Angeles Los Angeles $508,822.4 Madison 23.5
3 Chicago Chicago $245,294.2 New York 22.9
4 Dallas San Francisco $200,221.4 Mobile 22.8
5 San Francisco Dallas $151,966.5 Flint 22.6
6 Houston Atlanta $142,763.7 Huntsville 22.2
7 Miami Miami $141,411.4 Waco 22.1
8 Washington, DC Philadelphia $140,091.1 New Orleans 21.7
9 Philadelphia Washington, DC $122,579.5 Grand Rapids 20.7
10 Boston Boston $117,990.6 Birmingham 20.3
11 Atlanta Orlando $112,637.9 Nashville 19.4
12 Phoenix Houston $111,852.5 Cedar Rapids 19.3
13 Tampa Tampa $78,132.3 Columbia, SC 19.2
14 Orlando Minneapolis $74,441.7 Johnstown 19.0
15 Detroit Phoenix $73,612.1 Wilkes Barre 18.5
16 San Diego Las Vegas $71,005.7 Spokane 18.5
17 Minneapolis Detroit $60,489.4 Jackson, MS 18.3
18 Seattle Seattle $54,222.7 Shreveport 18.1
19 Denver Salt Lake City $50,562.3 Champaign 18.0
20 Cleveland San Diego $48,392.7 Los Angeles 17.6
21 Las Vegas Denver $47,591.7 Richmond 17.5
22 St Louis Nashville $45,039.0 Orlando 17.3
23 San Antonio Sacramento $43,162.7 El Paso 17.1
24 Sacramento Pittsburgh $40,595.5 Salt Lake City 17.0
25 Indianapolis Harrisburg $39,058.2 Baton Rouge 16.5
26 Pittsburgh Hartford $38,395.7 Evansville 16.0
27 Hartford San Antonio $37,297.0 San Francisco 15.8
28 Portland, OR Indianapolis $36,342.0 Savannah 15.7
29 Cincinnati St Louis $34,412.7 Atlanta 15.4
30 Baltimore Cleveland $34,268.3 Kansas City 14.8
Source: Kantar Media. Note Kantar under-reports OOH spend by approx. 35% so figures are not actual.

31 Salt Lake City Charlotte $31,572.2 Las Vegas 14.7

32 Charlotte Milwaukee $31,387.9 Toledo 14.7
33 Milwaukee New Orleans $30,758.9 Knoxville 14.0
34 Providence Kansas City $29,252.2 Albuquerque 13.8
35 Austin Grand Rapids $29,090.7 Springfield, MO 13.8
36 Raleigh Austin $27,069.3 Youngstown 13.3
37 Nashville Greenville, SC $26,473.2 Roanoke 13.1
38 West Palm Beach Jacksonville $25,514.6 Greenville, SC 12.9
39 Jacksonville Birmingham $25,431.0 Minneapolis 12.6
40 Greenville, SC Mobile $25,123.2 Boston 12.5
41 Columbus, OH Columbus, OH $21,711.0 Philadelphia 12.4
42 Oklahoma City Richmond $21,056.9 Jacksonville 12.4
43 Kansas City Oklahoma City $19,978.3 Tucson 12.4
44 Norfolk Madison $19,244.0 Syracuse 12.4
45 Louisville Cincinnati $18,751.5 Miami 12.3
46 Memphis Louisville $18,687.5 Milwaukee 12.3
47 Omaha Wilkes Barre $18,226.6 Lexington 12.2
Source: Kantar Media
Source: Kantar Media

48 Buffalo Knoxville $18,133.4 Chicago 12.1

49 Albany, NY Memphis $18,042.0 Fresno 12.1
50 Harrisburg Portland, OR $18,031.4 Green Bay 12.0
Outdoor Outlook
May 20, 2019 Page 6
Page 3
General Ad Market Trends
February 7, 2011

For 2019, MAGNA predicts ad revenues to

grow for a 10th consecutive year (2010-
2019) to reach $217 billion. The rate of
growth will slow down, however, to just +1.9
percent (or +4.1% excluding cyclical events),
as the economic environment starts to cool
down. Real GDP will grow by +2.4 percent, a
slowdown compared to 2018 (+2.9%).

OOH will grow by +2.8 percent as new digital

screens will again attract brands from sec-
tors like Technology, Luxury and Travel.

The Finance, Insurance, Pharma and Tech

verticals are the principal growth drivers.
The Tech “FAANG” giants are growing ad
budgets, especially with linear media (OOH
Source: MAGNA
and TV). MAGNA expects more 2019 growth
from Tech: cloud services, smart home devices, launch of 5G by wireless operators, and the introduction of new subscription
VOD services from Disney and Apple, are all expected to drive competition and ad spend. Many “Direct-to-Consumer” brands
reached scale and started running branding campaigns in traditional media in 2018, in addition to digital media and eCom-
merce environments, and will contribute to 2019 ad spend growth.

According to Vincent Letang, EVP, global market intelligence at MAGNA, “One of the drivers of the historically long and historically
strong era of growth the US market is experiencing, lies in the technology sector introducing mass consumer products and ser-
vices. While doing so, internet giants ironically discover what CPG marketers knew all along: the power of traditional media (OOH
and TV, in particular) to build mass brand awareness.”

Competitive Media:
Digital Sales Still Not
Offsetting Offline Losses
Digital ad sales will grow double-digits again
in 2019 (+12% to $124 billion) while linear
ad sales will decrease by -5 percent to $92
billion. Digital media now accounts for more
than 50 percent of advertising spending (30%
for national consumer brands), and the fastest
growing digital formats will be Social (+23%),

Source: MAGNA
Video (+19%), and Search (+13%).

Audio net ad revenues will decrease by -3

percent to $15.6 billion (linear radio -5%, digital
audio +4%). Broadcast radio suffers from stag-
nating pricing, music streaming shifts towards
ad-free premium business models and podcasts,
though exploding in terms of usage and sponsor-
ship opportunities, remain hard to monetize for
publishers. Magazine and newspaper publishers
will also face declining ad revenues: -10 percent
at $20.3 billion as digital/mobile sales (+7% at
$8 billion) do not offset the erosion of national
and local ad sales (-18% at $12 billion).

Competitive Media:
Source: MAGNA

Mobile, Social and Video

Lead the Growth
Following usage trends, desktop-based ad sales
are no longer growing as mobile impressions
capture the entire growth.