iHeartMedia 2011 Annual Report Download - page 11

Download and view the complete annual report

Please find page 11 of the 2011 iHeartMedia annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 144

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144

Outdoor advertising companies compete primarily based on ability to reach consumers, which is driven by location of the
display.
International Outdoor Advertising
Our International outdoor business segment includes our operations in Asia, Australia and Europe, with approximately
34%, 37% and 39% of our revenue in this segment derived from France and the United Kingdom for the years ended December 31,
2011, 2010 and 2009, respectively. As of December 31, 2011, we owned or operated more than 630,000 displays across 30 countries.
Our International outdoor assets consist of street furniture and transit displays, billboards, mall displays, Smartbike
schemes, wallscapes and other spectaculars, which we own or operate under lease agreements. Our International business is focused
on metropolitan areas with dense populations.
Strategy
Similar to our Americas outdoor advertising, we believe International outdoor advertising has attractive industry
fundamentals including a broad audience reach and a highly cost effective media for advertisers as measured by cost per thousand
persons reached compared to other traditional media. Our International business focuses on the following strategies:
Promote Overall Outdoor Media Spending. Our strategy is to promote growth in outdoor advertising’s share of total media
spending by leveraging our international scale and local reach. We are focusing on developing and implementing better and improved
outdoor audience delivery measurement systems to provide advertisers with tools to determine how effectively their message is
reaching the desired audience.
Capitalize on Product and Geographic Opportunities. We are also focused on growing our business internationally by
working closely with our advertising customers and agencies in meeting their needs, and through new product offerings, optimization
of our current display portfolio and selective investments targeting promising growth markets. We have continued to innovate and
introduce new products in international markets based on local demands. Our core business is our street furniture business and that is
where we plan to focus much of our investment. We plan to continue to evaluate municipal contracts that may come up for bid and
will make prudent investments where we believe we can receive attractive returns. We will also continue to invest in markets such as
China, Turkey and Poland, where we believe there is high growth potential.
Continue to Deploy Digital Display Networks. Internationally, digital out-of-home displays are a dynamic medium which
enables our customers to engage in real-time, tactical, topical and flexible advertising. We will continue our focused and dedicated
digital strategy as we remain committed to the digital development of out-of-home communication solutions internationally. Through
our new international digital brand, Clear Channel Play, we are able to offer networks of digital displays in multiple formats and
multiple environments including bus shelters, airports, transit, malls and flagship locations. We seek to achieve greater consumer
engagement and flexibility by delivering powerful, flexible and interactive campaigns that open up new possibilities for advertisers to
engage with their target audiences. With digital network launches in Sweden, Belgium and the U.K. accelerating our expansion
program during 2011, we had more than 2,900 digital displays in twelve countries across Europe and Asia as of December 31, 2011.
Sources of Revenue
Our International outdoor segment generated 27%, 25% and 26% of our revenue in 2011, 2010 and 2009, respectively.
International outdoor advertising revenue is derived from the sale of traditional advertising copy placed on our display inventory and
electronic displays which are part of our network of digital displays. Our International outdoor display inventory consists primarily of
street furniture displays, billboards, 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 segment:
8