iHeartMedia 2010 Annual Report Download - page 7

Our Americas outdoor assets consist of billboards, street furniture and transit displays, airport displays, mall displays, and
wallscapes and other spectaculars, which we own or operate under lease management agreements. Our Americas outdoor advertising
business is focused on urban markets with dense populations.
Strategy
We seek to capitalize on our Americas outdoor network and diversified product mix to maximize revenue. In addition, by
sharing best practices among our business segments, we believe we can quickly and effectively replicate our successes in other
markets in which we operate. Our outdoor strategy also focuses on leveraging our diversified product mix and long-standing presence
in many of our existing markets, which provides us with the platform to launch new products and test new initiatives in a reliable and
cost-effective manner.
Drive Outdoor Media Spending. Given the attractive industry fundamentals of outdoor media and our depth and breadth of
relationships with both local and national advertisers, we believe we can drive outdoor advertising’s share of total media spending by
utilizing our dedicated national sales team to highlight the value of outdoor advertising relative to other media. Outdoor advertising
only represented 3% of total dollars spent on advertising in the United States in 2009. We have made and continue to make significant
investments in research tools that enable our clients to better understand how our displays can successfully reach their target
audiences and promote their advertising campaigns. Also, we are working closely with clients, advertising agencies and other
diversified media companies to develop more sophisticated systems that will provide improved audience metrics for outdoor
advertising. For example, we have implemented the EYES ON audience measurement system which: (1) separately reports audiences
for each of the nearly 400,000 units of inventory across the industry in the United States, (2) reports those audiences using the same
demographics available and used by other media permitting reach and frequency measures, (3) provides the same audience measures
across more than 200 markets, and (4) reports which advertisement is most likely to be seen. We believe that measurement systems
such as EYES ON will further enhance the attractiveness of outdoor advertising for both existing clients and new advertisers and
further foster outdoor media spending growth.
Continue to Deploy Digital Billboards. Digital outdoor advertising provides significant advantages over traditional outdoor
media. Our electronic displays are linked through centralized computer systems to instantaneously and simultaneously change
advertising copy on a large number of displays, allowing us to sell more slots to advertisers. The ability to change copy by time of day
and quickly change messaging based on advertisers’ needs creates additional flexibility for our customers. 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. We
expect this trend to continue as we increase our quantity of digital inventory. As of December 31, 2010, we have deployed a total of
615 digital displays in 36 markets in the United States.
Sources of Revenue
Americas Outdoor Advertising generated 22%, 22% and 21% of our revenue in 2010, 2009 and 2008, respectively. Americas
Outdoor Advertising revenue is derived from the sale of advertising copy placed on our display inventory. Our display inventory
consists primarily of billboards, street furniture displays and transit displays. The margins on our billboard contracts 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 Advertising inventory:
(1) Includes digital displays.
(2) Includes spectaculars, mall displays and wallscapes.
4
Year Ended December 31,
2010 2009 2008
Billboards
Bulletins 54% 52% 51%
Posters 13% 14% 15%
Street furniture dis
p
la
y
s 6% 5% 5%
Transit dis
p
la
y
s 15% 17% 17%
Other dis
p
la
y
s 12% 12% 12%
Total 100% 100% 100%
(1)
(2)