iHeartMedia 2009 Annual Report Download - page 14

Sources of Revenue
Our International Outdoor Advertising segment generated 26%, 27% and 25% of our revenue in 2009, 2008 and 2007,
respectively. International outdoor advertising revenue is derived from the sale of advertising copy placed on our display inventory.
Our international outdoor display inventory consists primarily of billboards, street furniture displays, transit displays and other out-of-
home advertising displays, such as neon displays. The following table shows the approximate percentage of revenue derived from
each inventory category of our International Outdoor Advertising segment:
Our International Outdoor Advertising segment generates revenues worldwide from local, regional and national sales.
Similar to the Americas, advertising rates generally are based on the gross ratings points of a display or group of displays. The
number of impressions delivered by a display, in some countries, is weighted to account for such factors as illumination, proximity to
other displays and the speed and viewing angle of approaching traffic.
While location, price and availability of displays are important competitive factors, we believe that providing quality
customer service and establishing strong client relationships are also critical components of sales. Our entrepreneurial culture allows
local management to operate their markets as separate profit centers, encouraging customer cultivation and service.
B
illboards
The sizes of our international billboards are not standardized. The billboards vary in both format and size across our
networks, with the majority of our international billboards being similar in size to our posters used in our Americas outdoor business
(30-sheet and 8-sheet displays). Our international billboards are sold to clients as network packages with contract terms typically
ranging from one to two weeks. Long-term client contracts are also available and typically have terms of up to one year. We lease the
majority of our billboard sites from private landowners. Billboards include our spectacular and neon displays. DEFI, our international
neon subsidiary, is a global provider of neon signs with approximately 361 displays in more than 16 countries worldwide. Client
contracts for international neon displays typically have terms of approximately five years.
Street Furniture Displays
Our international street furniture displays are substantially similar to their Americas street furniture counterparts, and
include bus shelters, freestanding units, public toilets, various types of kiosks and benches. Internationally, contracts with municipal
and transit authorities for the right to place our street furniture in the public domain and sell advertising on such street furniture
typically provide for terms ranging from 10 to 15 years. The major difference between our International and Americas street furniture
businesses is in the nature of the municipal contracts. In our international outdoor business, these contracts typically require us to
provide the municipality with a broader range of urban amenities such as bus shelters with or without advertising panels, information
kiosks and public wastebaskets, as well as space for the municipality to display maps or other public information. In exchange for
providing such urban amenities and display space, we are authorized to sell advertising space on certain sections of the structures we
erect in the public domain. Our international street furniture is typically sold to clients as network packages, with contract terms
ranging from one to two weeks. Long-term client contracts are also available and typically have terms of up to one year.
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Year Ended December 31,
2009 2008 2007
Billboards 32% 35% 39%
Street furniture displays
40% 38% 37%
Transit displays 8% 9% 8%
Other displays
20% 18% 16%
Total 100% 100% 100%
(1) Includes revenue from spectaculars and neon displays.
(2) Includes small displays.
(3) Includes advertising revenue from mall displays, other small displays, and non-advertising revenue from sales of street furniture
equipment, cleaning and maintenance services, operation of Smartbike schemes and production revenue.
(1)
(2)
(3)