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6
Although digital displays require more capital to construct compared to traditional bulletins, the advantages of digital allow us to
penetrate new accounts and categories of advertisers, as well as serve a broader set of needs for existing advertisers. Digital displays
allow for high-frequency, 24-hour advertising changes in high-traffic locations and allow us to offer our clients optimal flexibility,
distribution, circulation and visibility. We expect this trend to continue as we increase our quantity of digital inventory. As of
December 31, 2014, we have deployed more than 1,100 digital billboards in 37 markets in the United States.
Sources of Revenue
Americas outdoor generated 20%, 21% and 20% of our revenue in 2014, 2013 and 2012, respectively. Americas outdoor
revenue is derived from the sale of advertising copy placed on our traditional and digital displays. Our display inventory consists
primarily of billboards, street furniture displays and transit displays. The margins on our billboard contracts, including those related to
digital billboards, tend to be higher than those on contracts for other displays, due to their greater size, impact and location along
major roadways that are highly trafficked. Billboards comprise approximately two-thirds of our display revenues. The following
table shows the approximate percentage of revenue derived from each category for our Americas outdoor inventory:
Year Ended December 31,
Billboards:
Bulletins
Posters
Street furniture displays
Transit displays
Other displays (1)
Total
(1) Includes spectaculars and wallscapes.
Our Americas outdoor segment generates revenues from local and national sales. Our advertising rates are based on a
number of different factors including location, competition, size of display, illumination, market and gross ratings points. Gross
ratings points are the total number of impressions delivered, expressed as a percentage of a market population, of a display or group of
displays. The number of impressions delivered by a display is measured by the number of people passing the site during a defined
period of time. For all of our billboards in the United States, we use independent, third-party auditing companies to verify the number
of impressions delivered by a display. “Reach” is the percent of a target audience exposed to an advertising message at least once
during a specified period of time, typically during a period of four weeks. “Frequency” is the average number of exposures an
individual has to an advertising message during a specified period of time. Out-of-home frequency is typically measured over a four-
week period.
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. In addition, we have long-standing
relationships with a diversified group of advertising brands and agencies that allow us to diversify client accounts and establish
continuing revenue streams.
Billboards
Our billboard inventory primarily includes bulletins and posters.
Bulletins. Bulletins vary in size, with the most common size being 14 feet high by 48 feet wide. Digital bulletins display
static messages that resemble standard printed bulletins when viewed, but also allow advertisers to change messages
throughout the course of a day, and may display advertisements for multiple customers. Our electronic displays are
linked through centralized computer systems to instantaneously and simultaneously change advertising copy as needed.
Because of their greater size, impact, high-frequency and 24-hour advertising changes, we typically receive our highest
rates for digital bulletins. Almost all of the advertising copy displayed on traditional bulletins is computer printed on
vinyl and transported to the bulletin where it is secured to the display surface. Bulletins generally are located along
major expressways, primary commuting routes and main intersections that are highly visible and heavily trafficked. Our
clients may contract for individual bulletins or a network of bulletins, meaning the clients’ advertisements are rotated