iHeartMedia 2012 Annual Report Download - page 11

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8
December 31, 2012, 2011 and 2010, respectively. As of December 31, 2012, we owned or operated more than 650,000 displays
across 28 countries.
Our International outdoor assets consist of street furniture and transit displays, billboards, mall displays, Smartbike programs,
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 business, we believe our International outdoor advertising business 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 and Latin America 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 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. We had more than 3,400 digital displays in 13 countries across Europe, Asia and Latin America as of
December 31, 2012.
Sources of Revenue
Our International outdoor segment generated 27%, 28% and 27% of our revenue in 2012, 2011 and 2010, 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. The following table shows the
approximate percentage of revenue derived from each inventory category of our International outdoor segment:
Year Ended December 31,
Street furniture displays
Billboards (1)
Transit displays
Other (2)
Total
(1) Includes revenue from posters and neon displays. We sold our neon business during the third quarter of 2012.
(2) 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 programs and production revenue.