iHeartMedia 2011 Annual Report Download - page 9

Our Americas outdoor segment generates revenues from local, regional 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.
B
illboards
Our billboard inventory primarily includes bulletins and posters.
6
Year Ended December 31,
2011 2010 2009
Billboards:
Bulletins 53% 53% 51%
Posters 13% 14% 14%
Street furniture dis
p
la
y
s 7% 6% 5%
Transit dis
p
la
y
s 16% 15% 17%
Other dis
p
la
y
s 11% 12% 13%
Total 100% 100% 100%
(1) Includes s
p
ectaculars, mall dis
p
la
y
s and wallsca
p
es.
•
B
ulletins. 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. 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 among bulletins to increase the reach of the
campaign. Our client contracts for bulletins, either traditional or digital, generally have terms ranging from four weeks
to one
y
ear.
• Posters. Digital posters are available in addition to the traditional 30-sheet or 8-sheet displays. Similar to digital
bulletins, digital posters display static messages that resemble standard printed posters when viewed, and are linked
through centralized computer systems to instantaneously and simultaneously change messages throughout the course of
a day. The traditional 30-sheet posters are approximately 11 feet high by 23 feet wide, and the traditional 8-sheet posters
are approximately 5 feet high by 11 feet wide. Advertising copy for traditional 30-sheet posters is digitally printed on a
single piece of polyethylene material that is then transported and secured to the poster surfaces. Advertising copy for
traditional 8-sheet posters is printed using silk screen, lithographic or digital process to transfer the designs onto paper
that is then transported and secured to the poster surfaces. Posters generally are located in commercial areas on primary
and secondary routes near point-of-purchase locations, facilitating advertising campaigns with greater demographic
targeting than those displayed on bulletins. Our poster rates typically are less than our bulletin rates, and our client
contracts for posters generally have terms ranging from four weeks to one year. Premiere displays, which consist of
premiere panels and squares, are innovative hybrids between bulletins and posters that we developed to provide our
clients with an alternative for their targeted marketing campaigns. The premiere displays utilize one or more poster
panels, but with vinyl advertising stretched over the panels similar to bulletins. Our intent is to combine the creative
im
p
act of bulletins with the additional reach and fre
q
uenc
y
of
p
osters.
(1)