This month, we welcome Jeremy Male, CEO, CBS Outdoor [1], New York.
[2]
- What is your background?
In 1994, I was in the coffee business in Germany and stumbled upon an ad for a managing director position in the Out-of-Home industry in London. London Transport had just privatized its advertising business, and TDI, which was a U.S.-only company at the time, was awarded the contract and in need of leadership.
Bill Apfelbaum, who was the principal owner of TDI then, took a chance on me and we subsequently built TDI into a U.K. wide OOH company and added media in seven European countries. I joined the board of JCDecaux in 2000 to run the U.K. and Northern European businesses and was proud to be part of their successful IPO in 2001. Last September, I joined CBS Outdoor as the CEO of the Americas and here I am… in New York City.
- You were formerly CEO for JCDecaux in the U.K. and Northern Europe. Have you been in the U.S. long enough now to give U.S. an idea of the differences you have seen?
There are a few fundamental differences. One is that the European market is more pedestrian and destination-focused with most of the ‘display to audience’ interaction happening on the street, in rail stations, malls and the like. The U.S. market is more roadside or billboard focused with large highway structures. Also, the U.S. market skews more local than, say, the U.K., and the total sector ad share is under 5% compared to nearly 10%.
There also seems, for now, to be more rigidity in the buying cycle. In the U.K., the typical national buy would be 2,000 boards for two weeks, and in the States, the standard is lighter weight with a four-week minimum. The big opportunity is to get U.S. national advertisers to think differently about how OOH can work within their media strategy.
- Can you tell U.S. how CBS enticed a Brit to the U.S.? It wasn’t the New York winters!
No, it was definitely not the winters, although everyone here assures me that last winter was a one off. We’ll see. To leave JCDecaux, a company that I have enormous respect for, was a tough decision, but the offer to lead CBS Outdoor – especially with the opportunity to take it public – was one that I could not pass u
- Why do you think CBS Outdoor did so well with its initial IPO offer in March?
Firstly, because it’s a great business. We have a compelling story that combines great assets, a disciplined plan for growth and the best team in the industry. Secondly, I think the financial markets understand how well OOH is placed, particularly in the U.S., to benefit from the changing media landscape.
- When you joined CBS Outdoor, did CBS make you aware that it would spin off the company? Were you brought in to help make that happen, or was it a shock to you?
No shock. CBS announced its plan to split off the business in January, 2013, and that was a big piece of what made the opportunity so exciting.
- CBS Outdoor, along with rival Clear Channel Outdoor, has had a more than the usual lot of problems with government rules in California, and especially in Los Angeles, with getting digital signage accepted. LA is one of the U.S. largest cities. Do you think it should be – or will ever be – more open to digital signage? Explain your thoughts, please.
LA is currently considering a new digital sign ordinance and we remain hopeful that digital signage will be back sometime soon.
- CBS, along with others, is now faced with a 6% commercial rent tax on billboard advertisers in Times Square by the City of New York. The city only recently applied that although it is a long-standing tax that Times Square advertisers evaded. What are your views on this? What is the Times Square Alliance, of which CBS Outdoor is a member, doing about it?
We understand from published news sources that the city is looking into this, and we continue to monitor the issue.
- Earlier this year, you launched large format digital screens in New York subway stations. How has that worked? Will you be expanding beyond the original 10 stations? Why or why not? Are they interactive? How have advertisers reacted to them so far? How have consumers reacted?
We launched large format displays in the rotunda of Grand Central and also in Penn Station. Additionally, we have placed 10 screens in high profile stations for Turner Broadcasting in partnership with our friends at Mediavest. The displays take live feeds directly from the Turner studios and the content is all theirs. They launched in March as the U.S. big collegiate basketball competition known as the NCAA was getting underway. Riders literally set up chairs in front of the screens to watch! And yes, with the success to date, we are considering expanding the program.
- You are responsible for CBS Outdoor in both North America and South America. I believe that you are in four countries in S.A. now. How is business growth for digital signage there? Where can you best see possible expansion there? And with what type of products?
Our main focus for digital expansion has been in the U.S. market. With that said, we have added some strategic units in Mexico, Chile and Canada.
- Besides digital billboards in the U.S., you have a digital rail network, a digital platform network, digital urban panels at subway entrances, and networks in Grand Central Station and in Penn Station. What do you offer in Canada? And in Mexico? Tell U.S. how you foresee expansion in each of these countries and with what type of digital products.
The U.S. is clearly our focus as it’s far and away our largest market generating around 90% of our annual revenue. And you are right, in addition to digital billboards in iconic and high profile roadside locations, we have deployed some great digital networks. In New York, we have the urban panels, which is a 110 unit network at subway entrances. These were 100% Manhattan focus until recently when we added 10 to the ‘Barclay arena’ vicinity in Brooklyn. In Canada and Mexico, we are adding large format digital screens in locations that are additive to our market leading networks.
- Overall, where do you foresee the most potential for CBS Outdoor Americas’ digital expansion? Why?
Our approach has been very strategic and has been focused on converting high demand locations. The potential is extremely exciting. In our lifetime we have gone from paint, to paper, to vinyl, and now to the beginnings of robust digital networks. It’s really game-changing for the industry and advertisers.
- You use Traffic Audit Bureau ratings. What other forms of measurement do you use?
Currently the TAB OOH Ratings are the industry standard in the U.S.. Increasingly, other data sets will be layered onto the TAB data to enrich audience insight.
- Are you seeing advertisers using your screens in association with social media more often these days? Can you give U.S. a couple of examples, please?
We have seen a number of advertisers use social media to extend their OOH message. Some examples are Seinfeld, the long running NY-based sitcom promoted its new syndication time on wrapped subway cars and created a micro site dedicated to the campaign that encouraged riders to upload their ‘Seinfeld Train Selfies’ using #SeinfeldSubway.
Kenneth Cole’s new Mankind fragrance campaign challenged consumers to complete 21 good deeds in 21 days. Participants were asked to snap pictures of themselves completing tasks for a chance to win prizes. Ben & Jerry’s ice cream ran a social campaign that encouraged fans to share ‘euphoric’ Instagram photos with the hashtag #captureeuphoria. The 20 best fan photos from around the world were featured on Out-of-Home ads in their own neighborhoods. Those are a couple of recent top-of-mind examples. There are many more.
- I notice that you offer ‘mycbsoutdoor’ on your website which allows your advertising partners to see and pay invoices, renew contracts and share files related to campaigns. Is this new? How often is it used, and mainly why? I don’t see anything similar on your Canadian website. Is it only available for advertisers in the U.S.?
Yes, currently MYCBS, is U.S. only and has been a very valuable tool, mostly for the local marketplace.
- Do you see digital cannibalizing other products offered by CBS Outdoor? If so, which sector? And is it happening quickly?
We have a very disciplined approach to our digital expansion and have only converted units where the demand exceeds the supply. And we are aggressive in adding new advertisers, non-traditional OOH U.S.ers, to the medium. But your question is a valid one; our approach from both the conversion perspective and how we sell the inventory, minimizes cannibalization.
- Where do you foresee CBS Outdoor Americas by the end of 2015? What is your goal?
We see ourselves as leading the industry. Last week’s news of our pending Van Wagner acquisition is demonstrative of our top U.S. DMA growth strategy.
- Why do you think CBS Outdoor did so well with its initial IPO offer in March?