Market Entry Strategy Presentation on Out of Home Media Industry

1. Market Entry Strategy – OOH Advertising
Industry
December 16, 2011

2. Table of Contents
Topic Page
Market Size Estimate 3
Industry Overview 8
Competitive Mapping 14
Key Operating Strategies 21
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3. Market Size Estimate
3

4. Advertising is a non-personal presentation of an
idea or a product
Television Above the Line Advertising Broad Target Market
Difficult to
Print Media
measure
effectiveness
Radio Audio/Visual
Brand Above the Line Estimated
Internet Awareness Market - ` 247.5 size of
Mass Reach billion Indian
Outdoor Ads
Advertising
THE LINE Industry - `
Tele marketing Below the Line 450.0
Consumer billion as on
Defined Market - ` 202.5
POP/VM Induces billion 2011
Transaction
Also smell,
Direct Mail
touch & taste
Effectiveness
Road Shows measurable
Currently,
Events/In-signs ATL:BTL ratio in
Below the Line Advertising India stands at
55:45
Sales Promos
Source: India Entertainment and Media Outlook – 2011, PWC, Demand Estimation Model, ATL:BTL study report,
Internal Research 4

5. Segment-wise breakup of ATL market
OOH advertising, unlike print and television, is not a mass medium for advertising. It is a niche medium with focus on
geography, audience, type of property, location of property and various other parameters.
Market Size
Segments
(` in billion)
Television advertising 101.5
TV 42%
Print advertising 113.5
Radio advertising 10.8
BTL ATL
Internet advertising 7.7
45% 55%
Print 45% OOH advertising 14.0
Above the Line Market Size 247.5
Radio 4%
Internet 3%
OOH market
OOH 6% size - ` 14.0
billion
TV and Print Media have 87% share of ATL spends. The share of Out of Home Advertising (OOH) stands at 6% in 2011
Source: India Entertainment and Media Outlook – 2011, PWC, Demand Estimation Model
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6. Target Market for OOH Advertising - ` 10.6 billion
Others Telecom
24% 29% Segment-wise Market Size of
OOH as on 2011
Telecom 4.1
E&M BFSI 1.8
10% FMCG 1.8
BFSI
Auto 1.5
Auto 13%
FMCG E&M 1.4
11%
13% Others 3.4
Total 14.0
 Telecom, BFSI, FMCG, Automotive and Entertainment & Media were among the top OOH advertisers for 2011
contributing almost 76% revenue to OOH advertising Industry
 Real estate is another sector which is not among the biggest advertising sector on OOH but is growing fast
Source: India Entertainment and Media Outlook – 2011, PWC, Demand Estimation Model
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7. OOH advertisement is expected to growth at a
CAGR of 10.8% by 2011-2015 Figures in ` billion
Indicative
Timeline
2011E 2012F 2013F 2014F 2015F CAGR
Telecom 4.1 4.4 4.6 4.9 5.4 7.4%
BFSI 1.8 2.1 2.5 3.0 3.5 17.8%
FMCG 1.8 2.0 2.2 2.4 2.7 10.1%
Auto 1.5 1.7 1.9 2.1 2.4 11.4%
E&M 1.4 1.6 1.8 2.1 2.4 13.9%
Others 3.4 3.7 4.0 4.4 4.8 9.3%
Total 14.0 15.5 17.1 19.9 21.1 10.8%
Source: India Entertainment and Media Outlook – 2011, PWC, Demand Estimation Model
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8. Industry Overview
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9. Segments and Products in OOH Advertising
Industry
Large Format Street Furniture Alternative Media Transit Ambient
Billboards/Uni-poles Bus Shelters Arenas & Stadiums Buses Lift Branding
Wall Displays Urban Furniture Airborne (Blimp) Airports Shopping Mall
Building Wraps Gantries Marine Tram branding Multiplex Displays
Scrollers Foot Over Bridge Campuses Taxi Display Drop downs
Neon Signs Public Utility Outdoor Signages Van branding Counter branding
Standees, Floor, 3D &
Drop downs Leisure Area branding Rickshaw branding
Digital Graphics
Tri-visions Metro branding Interactive Kiosks
Billboards/Uni-poles advertising is the most common channel of OOH advertising in India
Source: Other Research
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10. Broad Value Chain of Out of Home Advertising
Industry
Outdoor Media
Media Planning Designing Manufacturing
Buying & Selling
Although not a part of Companies like Bright Designing Companies Manufacturing
value chain, Advertising Outdoor Media, etc. designs the layout, Companies provides
Agencies plans bids for and buys graphics, etc. for Printing and
advertising campaigns advertising rights at advertising campaign Fabrication services
which includes mix of ATL various locations from
& BTL campaigns at Government and
various locations Private parties and
earns rent by lending
these spaces to the
interested buyers
This segment is highly
competitive in nature
with large number of
organised players, with Retail Audit Implementation
large financial muscle,
operating in the Companies which Implementation
Industry. audits the advertising Companies have team
campaigns at regular of implementers
intervals and also which installs
gauge its effectiveness products at various
through research location
Source: Interview Insights, Insights from Internal members, Other Research
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11. Target Segment-wise Buying Decisions
Media Buying & Selling Design Manufacturing/Installation Retail Audit
Segment Decision Key Decision Decision Decision Decision Key Decision Decision Key Decision
Key Influencer
Making Influencer Maker Making Maker Making Influencer Maker Making Influencer Maker
Hub Advertising Hub Circle Hub
Hub Advertisin Hub Circle Circle Brand
Telecom Marketing Agencies/Inhous Marketing Head VM Brand Hub Level Marketing
Level g Agencies Level Level Manager
Manager e Creative Team Manager Manager Manager
Regional Group
Group Advertising Group Marketing Regional Regional Marcom
Centraliz Advertsing Centraliz Regional Centralize
BFSI Marcom Agencies/Inhous Marcom Team/Bra Marketing Marketing Head/Region
ed Agencies ed Level d
Head e Creative Team Head nch Manager Manager al Marketing
Managers Manager
Head Marketing
Advertising Centralize Marketing Marketing
Centraliz Advertsing Brand Centraliz Brand Regional VM/Marke Manager/
FMCG Agencies/Inhous d/Regiona Manager/Bra Manager/Bra
ed Agencies Manager ed Manager Level ting Brand
e Creative Team l Level nd Manager nd Manager
Manager Manager
Advertising Regional Regional Centralize Marketing
Centraliz Advertsing Brand Centraliz Brand Regional Brand
Auto Agencies/Inhous Marketing Marketing d/Regiona Team/Market
ed Agencies Manager ed Manager Level Manager
e Creative Team Team Manager l Level ing Manager
Advertising Regional Regional Centralize Marketing
Centraliz Advertisin Brand Centraliz Brand Regional Brand
E&M Agencies/Inhous Marketing Marketing d/Regiona Team/Market
ed g Agencies Manager ed Manager Level Manager
e Creative Team Team Manager l Level ing Manager
 Decisions related to Media Buying & Selling and Design are mostly taken at central level, except for Telecom which is taken at Hub level. Advertising Agencies are the key
influencers and brand manager is the key decision makers in most of the targeted industry. Advertising agencies generally outsource designing to specialized design house
 Most of the decisions related to manufacturing and execution are taken at regional with directives related to the brand communications coming from the centre
 Most of the decision related to related audit are centralized, which regional managers are the key influencers and brand managers are key decision makers
Source: Interview Insights, Insights from Internal members, Inputs from Primary Research already conducted, Other Research
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12. Current Trends in the Industry
Design
 Thinking out of the box and creating something memorable that makes a lasting impression for the brand
 Shocking imagery, content and visuals are used to quickly grab commuter’s attention and intrigue them to act
 When it comes to the world of outdoor — people are on the move so design considerations revolve around simplicity.
Work is showcased by: Using fewer elements, Using larger elements, Creating simple arrangements
 Keeping the colors fully saturated to create eye-popping designs
 Use of digital media is on rise as dynamic video and high quality images tell the story
Printing
 Printing trends have pointed towards shorter production runs and schedules. On demand and the ability to manage
custom kit configurations fit the demand of the customized industry
 Production now shifts closer to the point of distribution as lower lead time/ontime delivery has become a critical success
factor
Substrates
 Flex and Vinyl are the most common and effective substrates used for static advertising and host of substrates like ACP,
Backlit, electronics, LED screens, prisms, metals, etc. are used for digital advertising campaign
Inks
 Effective graphics are much more than great design, the use of specialty inks can make any static sign more dynamic.
Currently Solvent Inks are used on static billboards and signages for low cost advertising campaign and UV and Eco-Solvent
are used for fairly higher cost of advertising campaign
Source: Interview Insights, Insights from Internal members, VJ media works, Company’s website, Other Research
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13. Future Trends
Digital is the future in Outdoor Advertising
 Digital outdoor advertising medium offers communicators an
efficient platform that allows them to more precisely target
the audience with their unique message at the most
opportune moment.
 Though digital OOH in India has grown, it is still not on par
with other developing countries, as per PWC report the share
of digital OOH in India has gone up from approximately 1% to
5% over the last four years. However, this is significantly lower
than the global average of approximately 20%.
 The growth in digital OOH through LEDs has been slow. One
of the main reasons is that advertisers are not customizing
content for this medium and are instead recycling TV
advertisements
 However, though users are slowly realising the advantages of
digital OOH, the medium still needs to be sold. Digital OOH is
expected to grow at the rate of 30% to 35% in the next few
years as to the Report published by PWC
Source: Interview Insights, Insights from Internal members, India Entertainment and Media Outlook – 2011, PWC, Other Research

14. Competitive Mapping
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15. Competitor’s Presence in Value Chain
Outdoor Media
Designing Manufacturing Implementation Retail Audit
Buying & Selling
Type 1 Competitors - Presence across entire spectrum of value chain with selective outsourcing
In-House Outsourced In-House
TDI International Pvt. Ltd.
Jagran Engage
Partly
In-House Outsourced In-House
Outsourced
Selvel Advertising
Bright Outdoor Media Pvt. Ltd.
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16. Competitor’s Presence in Value Chain
Outdoor Media
Designing Manufacturing Implementation Retail Audit
Buying & Selling
Type 2 Competitors – Owns Media and Provides Designing services only
Prakash Arts Pvt. Ltd.
Outdoor Media
Designing Manufacturing Implementation Retail Audit
Buying & Selling
Tie-up with
In-House professional Market
Research
Companies
Type 3 Competitors – Owns Media, Provides Designing and Retail audit services
Laqshya OOH Media Assets and Solutions
Times Innovative Media Ltd
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17. Competitor’s Presence in Value Chain
Outdoor Media
Designing Manufacturing Implementation Retail Audit
Buying & Selling
Type 4 Competitors – Pure Media Buying & Selling Companies
Out-of-Home Media (India) Pvt. Ltd
Times Innovative Media Ltd
Outdoor Media
Designing Manufacturing Implementation Retail Audit
Buying & Selling
Type 5 Competitors – Engaged in Media Buying & Selling, Designing and Implementation
India Outdoor Advertising Pvt. Ltd.
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18. Competitor’s Presence in Value Chain
Outdoor Media
Designing Manufacturing Implementation Retail Audit
Buying & Selling
Type 6 Competitors – Pure Manufacturing Company
Numerous unorganised players providing Printing and Fabrication services
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19. Competitive Landscape
 Fragmented Industry – Outdoor Advertising Industry, baring outdoor Media Buying & Selling segment, is highly fragmented and unorganised in nature
with large number of players catering to various industries
 Industry Dependent – Players are Industry dependent and caters to majorly Telecom, BFSI, FMCG, Automotive and Entertainment & Media (E&M)
Industry
 Ease of Entry – There are no entry exit barriers. Large number of unorganised manufacturers caters to the demand of OOH advertising regionally.
However, in Media Buying & Selling space, there are large organised players like Bright Outdoor Media Limited (Mumbai), Times OOH (Mumbai &
Delhi), OOH Media (Presence in 18 cities), TDI International India Pvt. Ltd, etc. which makes it difficult for new companies to penetrate that segment.
 Segmental Focus – Few players in Media Buying & Selling Space, although caters to various segments, are focused on specific segments, eg., Bright
Outdoor Media are specialized in Bus advertising in Mumbai, TDI International India Pvt. Ltd. are specialized in Airport Advertising, Times OOH Media
are specialized in Bus Shelters advertising and so on
 One Stop Shop Concept – Few players are serving as “One Stop Shop” with selective outsourcing of manufacturing and implementation services
 Product Specific Presence – Few players like OOH media, deals only in buying and selling OOH TV screens. It has installed over 4500 screen in more
than 18 cities
 Presence across all segments - Times Innovative Media Ltd. (TIML) is a subsidiary of Bennett, Coleman and Co. Ltd (BCCL) has presence in all media
segments, i.e. Street Furniture, Transit, Large Formats & Digital Screens
 Locational Presence – Majority companies have bought advertising rights in premium locations of Metros. However, infrastructure growth in India has
opened up many new spaces for OOH advertising including Tier 2 and Tier 3 cities. Few companies like India Outdoor Advertising Pvt. Ltd. provides
installation services on Pan-India basis
 Other Services – Apart from catering Outdoor Advertising Industry, few companies like also deals in other products like Media and Celebrity
Management, PR, Location for Shootings, Satellite and Cable TV Advertising, etc.
 Pure Media Trading – Few players like Out of Home Media Pvt. Ltd., Times Innovative, etc are pure Media traders. These Companies buys media from
government or private parties and sells it to the interested buyers. Media Buying & Selling is influenced by various factors such as geography, audience,
locations, type of property, etc
Source: Company’s websites
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20. OOH Advertising Industry – Key Takeaways
 Lack of quality OOH properties - The quality of OOH properties in India is not up to the same standards as in the
western countries. In India, most billboards need to be changed manually and cannot be controlled. The west has
digital signages which are dynamic and can be adjusted with the ambience. They give more control to the advertisers
and help them evolve with the customer need
 One Stop Shop – The concept of “One Stop Shop” is gaining importance among customers. One Stop Shop means
presence across the entire value chain, right from Media Buying & Selling to Designing to Implementation
 Pain Points of customers – Lack of on-time Implementation and Retail Audit are the main area of pain points to the
customers in this Industry
 Presence in major cities – Outdoor advertising Industry is most popular in Metro cities. However, Infrastructure growth
in India has opened up many new spaces for OOH advertising including Tier 2 and Tier 3 cities
 Decision Making – Decisions regarding OOH advertising largely happens centrally and Brand Manager is a key decision
maker. However, in few sectors like Telecom decision regarding OOH advertising at taken at a circle level. Decisions
regarding manufacturing are decentralized
 Digitalization - Digital OOH is the next growth medium for the industry in India. According to PWC analysis, digital OOH
is expected to grow at the rate of 30 to 35% in the next few years
 Substrates, Inks & Product Preference – At an overall level, Flex and Vinyl seems to be the most preferred substrates
for manufacturing of OOH advertising products. Billboards advertising is the most common channel of OOH
advertising. However, with the increase in digitalization, usage of ACP, Backlite, etc. for manufacturing are expected to
increase. Also, Solvent Inks are most commonly used, however with the increasing environmental concerns, many
advertisers have started recommending the usage of UV and Eco-Solvent Inks in static advertising mediums.
Source: Interview Insights, Insights from Internal members, Company’s website, India Entertainment and Media Outlook – 2011, PWC
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21. Key Operating Strategies
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22. Critical Success Factors
Ability to fulfill “Order Ability to attract and
On-time today deliver maintain wide range of
Skills
Delivery tomorrow” type of skill sets through
orders on time effective HR policies
Ability to provide latest Quality at Value engineering –
Tech-
technological support optimum Modular costing and
support
to clients for retail audit Price Pricing system
Ability to influence Presence in entire
Solutions advertising agencies at spectrum of value chain
Services
concept level and ability to provide
customize service
Ability to Manage
outsourced capacities Media Ability to identify and
Sites
at different locations Buying & bid for the right
and define right mix Selling locations and right price
Appropriate
organizational structure Having partnership
Structure model with one
meeting dynamic Strategy
customer needs “Anchor Client” for
sustainability
Source: Internal Analysis
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23. Strategic Theme – Market Positioning
Innovate
Designs and
One stop Shop Solutions
Pan India
Presence for Shorter lead
effective time
installation
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24. Sales Org Structure Option Evaluation
Parameter Industry Based Size Based Region Based
Ease in Target Setting &
Tracking   
Client Serviceability   
Customer Knowledge   
Target Market Alignment   
Number of People Required   
Critical Mass in Each Sub-
Segment   
The Company should structure its sales organisation as per industry
segments thereby giving a proper focus in targeting the shortlisted
industries. Also, there should be regional industry sales team in order to
have close contact with the customers for repeat business
 Good  OK  Bad
Source: Internal Analysis
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25. Build Market Intelligence
Building up to date market intelligence will enable the Company to capture big clients and
larger share of business
Pre Sales Customer Intelligence Pre Sales Market Intelligence
• Organisation and brand structure of the target client • Identification of new players / brands in the segment
• Contact database of buyer, decision marker and • Research on trends and seasonality in OOH advertising
influencer spending in the segment
• Detailed pre-sales brief on the brand covering • Benchmarking of OOH advertising spend of the players
in the segment
• Brand sales, key challenges faced, current OOH
Enter
advertising supplier, recent OOH advertising • Successful case studies
activities, etc.
Market Intelligence
Post Sales Customer Intelligence Post Sales Market Intelligence
• Movement of key personnel • Creation of industry specific news letter
• Recent / upcoming events in the company / brand Penetrate • Updates on introduction of new products / technology
impacting OOH advertising purchases / designs at global level
• Entry of competition • New best practices
• Any challenges / issues faced by the company • Key challenges / issues facing the market
• Change in market position of the company
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26. Build Strong Brand
Branding Strategy
Website Public Relations Promotional Activities
 Website must be easily accessible  Build a database of media houses and  Participate in Exhibitions to showcase
their Point of contact and keep them our range of offerings
 Website must clearly define the updated
Company’s Products and Services  Sponsor Exhibitions and have road
 Build a relationship with Editors and shows
 Website must be interactive rather Producers of Print and Television
than a information provider (e.g. Chat media  Have regular Vendor Management
programme to connect with our staff) meets
 Should have the bandwidth of a PR
 Must have an online Vendor and Client company to carry out promotional  Have Advertising agencies/ Brand
portal activities Managers/Marketing Managers meets
to make them aware of new
 Must have some blogs  Must keep the website updated developments in our Core
regularly competencies
 Comments regarding the Website in
blogs across the Internet space must  Invite our clients to our offices and  Send regular feeders on the Ongoing
be monitored and acted upon factories developments in our Service offerings
to Influencers and Key decision makers
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27. Following Details are pending due to lack of time
 A Detailed Competitors profiling is required covering Products and
Services Offered, Segmental Presence, Client Base and Locational
Presence.
 Regulations related to Outdoor Advertising like Tobacco billboard ads
are not allowed, etc.
 Information on Pricing through primary research
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28. THANK YOU
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