This month we welcome Mac Ma, CEO, Pilot TV Media, Taipei, Taiwan.

1. Please tell us about yourself. What is your work background and how did you get into the digital out-of-home business? How long have you been CEO?

   In college, I majored in Banking and Insurance. But, I love advertising and creativity, so, I have been in advertising business for over 23 years. I started my own advertising agency around 20 years ago. I am now CEO of both Pilot TV and Elite Ad (my own advertising agency). I am also a consultant on marketing to three companies of ChiMei Group. We started looking into LCD-TV and the Internet’s effect on marketing and advertising back in 2002.

2. I believe Pilot TV Media is part of the Chi Mei Group and Chi Lin Technology Investment Media Corp.. Is it the only media property owned by these companies? Was Pilot TV set up independently? Please tell us a little about the history of the company?

   Pilot TV (PTV) is a subsidiary of ChiLin Technology Co. (CLT). It is the only media property owned by CLT, which has continuously supported innovative industry and has put in many R&D efforts. PTV was established 2007, with the aim of building up digital signage and its commercial use.

3. In 2010, you had approximately 3,600 screens of various sizes, mainly in three major networks for FamilyMart stores, McDonald’s, and in railway transportation. What has changed since then in terms of growth and locations?

   We still operate these three networks. Although screens increase as time goes on, advertising prices can’t be reasonable without measuring tools. In 2012, we’ll install O-Viewer to each screen of our current networks and those of new networks in the future.

   Digital Signage has that marketing ‘last mile’ affect on consumers. At convenience stores, consumers decide to buy a new product; at fast food chains, they decide to go car shopping over the weekend; at the subway, consumers decide to go to the department store to buy sales items before going home.

4. You have plans to add another 1,100 locations this year. In what areas do you hope to add these? Do you have any definite commitments yet in regards to this expansion?

   PTV proved that digital signage increases purchases in convenience stores. By 2013, PTV will cover 70% of convenience stores and reach 6 million consumers a day

5. Tell us about the content of each of your networks. Who handles the creative? Do you have a deal with any public TV networks to supply content?

   We have cooperated with many content providers including cartoon animators, fashion magazines, news media and entertainment websites for a long time. Each network has different content. We also have our own in-house production team to develop innovative content modules. The differences between DOOH and TV are the viewing environment and dwell time for consumers, so our content is all less than three minutes long. Public TV networks usually use our networks promote their programs.

6. Whose software do you use behind each of your networks? And how are you using the Cloud?

   According to hardware used in the different channels, PTV current uses three different broadcasting systems, Windows Embedded, Linus Embedded, and Android. All three systems are compatible with each other to support the needs of the different broadcast channels.

   Cloud computing has been a very hot topic in the past two years. When we began our development, PTV incorporated the concept of cloud computing into our own viewer measurement system. Other then viewer measurements, cross channel and cross platform integration are both future goals of our cloud computing technology. Working with Internet providers and other Cloud Computing Service providers – Microsoft, Google, and CHT (Taiwan’s biggest telecom company) – are all parts of PTV’s plan. We hope to expand the development of the whole DOOH industry in Taiwan.

7. Who controls each network? Do store managers have any opportunity to input contents or is it all handled by a central control?

   PTV is the only one controlling the contents on each network. Store manager still need to go through PTV. It is centrally controlled.

8. Please tell us how your O-Viewer measurement system works. What role does it play in targeting your audiences?

   Viewer measurement is the focal point of all digital signage developers. Without providing reliable ROI information, we can’t convince advertisers and channel distributors to enter the digital signage industry.

   Other then providing media measurement, O-Viewer measurement system can also provide channel distributors with visitor analysis, which includes location, time, content and visitors’ statistics. With viewers’ behavior, including preference and viewing time, the O-viewer measurement system can accurately provide different statistics to advertisers and channel distributors for marketing analysis and it even becomes a standard for advertising pricing.

9. Back in 2010, there was an agreement between Pilot TV Media, Quividi in Paris and DiGital Content Technologies of Singapore (a Quividi VAR) to measure your screen networks. And prior to that, you had an extensive test in five FamilyMart stores with Quividi. Is there a connection between your O-Viewer that you now use and Quividi, or did the pilot test convince you to take another direction?

   O-Viewer measurement system was developed in the hope of creating a successful business model for the global digital signage media. Facial recognition technology is currently the most matured technology. With the development of new technologies and decreasing cost, in the future, O-viewer measurement system does not rule out the possibilities of utilizing other technologies, eg. retina recognition, expression recognition, hand-gesture recognition, and hand-sign recognition.

   Quvidi has entered its fourth years of cooperation with PTV. Quividi provides a fast and accurate result of viewer measurements. With the developments of different needs from advertisers and channel distributors, PTV looks forward to facing these challenges with Quividi, in the hope of building more successful business models for digital signage media.

   PTV also will seek other potential partners in other recognition technologies in hope of promoting cross-media marketing, recognition and interactions.

10. Do you handle all advertising sales for all networks in-house? How large a sales staff do you have? Do they specialize by national sales, local sales, or by network?

    PTV has 10 advertising sales staff in-house. Sales people contact clients directly or go through ad agencies.

11. What kind of advertising is on the screens in each main network? What is the advertising/editorial ratio? Is advertising full screen or divided with editorial content, tickers, etc.? Who are some of your biggest advertisers?

    The majority of the time slots on PTV are commercials from various clients, for example for new product launches and new product sales. We also have information content: news, weather, the recent Taiwan Presidential Election results. Government, the food industry, telecoms and Internet game industries are our main advertisers. Other than MRT’s (subway) screens, which need to show on-time MRT information, all other screens show one piece of information at a time, with a running text at the bottom.

12. How far do your networks extend: across the country? In specific cities? Outside your own country? Do you plan to expand outside your own country? When, if so, or why not?

    There are a total of 8,000 convenience stores in Taiwan. PTV can provide services to anywhere Internet can reach. However, we prefer to concentrate on Taiwan first.

13. Do you have any plans to go outside of your current retail sector to move into more specific niches such as pharmacies, hospitals, educational facilities or fashion boutiques?

    PTV will focus on convenience stores, pharmacies, rapid transit stations, and fast food chains.

14. What are your own main responsibilities, and how do you see your own future evolving in the DOOH world? Do you have time or opportunity to travel and see what is developing in other countries? Are there areas about which you’d like to learn more?

    The cost of hardware will be cheaper and cheaper. My main responsibility is to make sure digital signage can make money, and the business model can be established and proven workable.

    I am a motorcycle enthusiast and have traveled to many countries around the world both for riding and for business trips. I also read lots of case studies about digital signage. Audience measurement and interactive experience (connecting with mobile or body movement) seem to be the future of DOOH and those applications will appear on PTV’s network this year.

15. Tell us your thoughts regarding the future of DOOH in Asia generally and particularly in your own country. Where is development coming from especially, and what do you see as the ‘next big thing’ in DOOH in your part of the world?

    In order for Digital Signage to have a future, it needs to make money. Digital Signage becoming a media is a must process. To be proven as a media, DS needs to have a proven efficiency measurement.

    Media will no longer monopolize; any enterprise can establish its own digital signage network. Between enterprises, digital signage can exchange and purchase time slots. IPTV and digital signage will integrate into an enterprise media. QR Codes will string together the whole service network.

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1. How long have you been with Taxi TV? Tell us a bit about your background and how you became involved? Who are the owners?

   I have always been interested in developing ideas and, from there, companies that, based on those ideas, will be profitable, help the country and their employees. I studied electronic engineering and then earned an MBA, so I have the interesting combination of engineering, technical knowledge and a business point of view.

   I worked in a company that represented foreign factories to sell their products in our country – specifically in public bids. Then I stayed for five years in a factory that produced and imported upholstery fabrics to sell and export. There, I worked under the General Manager. These two jobs gave me wide experience in almost every area of a company: import, export, sales, finance, production, marketing, human resources, strategy.

   While being in a big company, but not one of the largest in advertising buys, I realized that our media options (magazines, newspaper, TV, radio and Internet) were not what we needed. They were too expensive for us to make some noise or were too specific, with not much access to measurement and campaign reports. At the same time, I started noticing an interesting development in DOOH networks outside our country and I decided to do some research.

   After awhile, we developed the idea of Taxi TV. It is a family business, 3.5 years old.

2. Your screens seem to be suspended from the taxi ceilings as opposed to being in seat backs as in New York and London. Are they all like that? What is the reasoning behind that: government laws? Easier maintenance? Or?

   That is right. They are all like the ones on the pictures on our website. The reason came up as the result of our research. It was impossible to put them In the middle of the driver and passenger seats, because of the size of taxis in Colombia, which are VERY small. The other option, as is commonly used in other countries, was the passenger headrest.

   The problem in Colombia is that, because of the years when there was a lot of violence, taxis picked up passengers with a passenger that, in some cases, helped with the planned crime. For this reason – and also so that the passengers could see the taxis as ‘empty’ or ‘free’, the drivers started removing the headrests and bending the front passenger seat. This way, potential passengers could be sure there wasn’t anyone seated there and that the taxi was available.

   Some other features of the system are also interesting: the sound of the screen blocks the music radio of the car when a passenger is in it; the video is turned on only when the taximeter starts; the system, being manual and not Internet-based, counts the impressions and impacts – and also, if it’s stolen, it won’t work

3. Tell us about your company: how long has it been offering in-taxi screens? Does the company have any other media properties? I think I saw that you are in 10,000 taxis. Is Taxi-TV the only company offering in-taxi screens, or if not, who are your competitors?

   We founded the company 3.5 years ago with the idea of having different DOOH networks but until now we have only developed the one for taxis. The idea is to offer different kinds of options to clients: taking a different focus from the traditional DOOH networks that are based on number of impacts, we want to be based on added value. Since our launch, we have seen more than half a dozen companies that tried to compete with us in the taxi network. All of them had gone broke.

   We have 300 taxis in Bogota today but next year we will be increasing this number to 1.000 for the first stage, getting to 4.000 in less than three years.

   These new screens will be totally different. We have learned that we need to give more to all of the different stakeholders involved. In that, I mean: passenger, driver, taxi owner, taxi company, advertiser, media agency and government. For this reason, we have developed a new system that will upgrade content remotely, be interactive, will have two screens: one for the passenger and one for the driver, giving a lot of benefits to the driver and the taxi owner.

   Also, they will have a printer; the possibility of payment; GPS; and a complete security solution (cameras, communication, face recognition, car license plates, etc) for police and government.

   We are not only creating a DOOH network, we are changing the way taxi transportation is used in our country to be able to really give a good service to everyone, increase our penetration, satisfy passengers and drivers and be able to have a well-designed entertaining and advertising network.

4. Whose software is used to manage the screens? Are they all managed from one central location? Where?

   As I mentioned, today we do it manually for the 300 screens. Next year, we are planning to use BroadSign software for the new 1.000 devices. This will be controlled from a central operating location.

   At the same time, we have developed the taximeter, maps, communication, music and other applications for the driver, taxi owner, management company – and at this time we are looking for a partner for the security software that will be offered to the government and police.

5. Your screens seem to offer full screen ads but divided screens when showing entertainment, weather, a news ticker. How much of your content is advertising? How long are the ads and the advertising loop? Do you also have public service advertising? Amber alerts?

   Advertising is about 30% within a 30-minute loop. Most are regular TV 30-second ads but we are changing this idea based on feedback from clients and agencies. They are realizing the importance of context-related ads and how efficient they could be, keeping in mind the low production costs and the characteristics of our network.

   We do have public service advertising. In fact, public service make up an important part of our clients. They see the medium as a great opportunity to explain, give more information and communicate more than the one or two ideas as in a TV or printed ad.

6. In New York, taxis are now offering two channels, one an entertainment/news/advertising channel and the other, a new one dedicated specifically for the City of New York geared to events, entertainment and other tourism information. Are you offering anything similar or is there any thought to offering something like this?

   The New York taxi network is a very good one; we use it as a benchmark for our developments. I think that, in the past, they have focused too much on payments and less on content. With their recent changes, I think they will provide a better solution. Another very interesting thing about them is that a lot of people from the world travel to N.Y. and the network has managed, through the local government, to have its system in almost every taxi in Manhattan. (Stroh is referring to VeriFone which handles the advertising for both major taxi networks in New York. Ed)

   Our system uses some of these ideas, but also we have learned from taxi networks that we have seen in other U.S. cities and different part of the world. We try to unify all those concepts and be able to apply them to the culture and reality of our country. For example, Manhattan has approximately 13.000 taxis; Bogotá, our capital city, has more than 55.000. In addition, the taxis in Colombia are very small and we have to deal with some security issues – and the system of how taxi transportation works is different from most parts of the world.

   In terms of advertising sales, I would say that Colombia, is underserved: there is one important newspaper, two TV channels and not more than five main radio stations for a country of 45 million people. Because of this, the process of introducing new options in terms of advertising is very difficult and slow.

   We do have different types of content: entertainment, music, news, sports, etc. and also show the city’s activities and attractions. These are produced by media partners, but we are on our way to start producing our own branded content.

7. What kind of research do you have re dwell time, advertising impressions, ad recall?

   We have made huge efforts in research to prove to our clients that our network is a great option for their media mix.

   We have had to fight against a bad image that was formed by our competitors because their networks did not work well. They had technical and operational deficiencies that implanted big doubts in agencies and clients.

   Today. we deliver proof=of-play reports, but more importantly, we have awareness and attitude research every month. A certified research company finds the taxis and after the passengers get off, they are asked to fill a survey. The main objective is to measure awareness of the brand and products.

   With this methodology, the average brand awareness with one impression in our network is 77%, while brands like Coca Cola have even had as high as 95%. With a comparable research, Ipsos measured billboards, getting an awareness of 35%, and TV that after 500 TRP got less than 58%.

   We definitely measure our impressions and key numbers. For every taxi there are 1.200 impressions a month with a dwell time of 30 minutes and two persons per ride.

8. How much of your advertising is national compared to local? What are the differences in selling ads in taxis in Columbia compared to the U.S. or U.K.?

   Most of our ads are national.

   As mentioned earlier, there are differences between selling ads in Colombia compared to the U.S. or U.K.. In the US, DOOH networks can compete with local newspapers, TV channels and radio. In Colombia, a country with a large population, the media is monopolized by a few big groups. Agencies receive huge commissions from them when fulfilling a budget and almost every big campaign has to use those options to really be massive. Because of this, getting the agency’s attention is very difficult, so we have to go directly to the client.

   DOOH is growing and this helps, but in a developing country this takes more time. Our challenge is to develop a network that is a lot more than a screen with content and ad. That is why we are moving to a high-end technology solution, giving a great service to everyone involved. This way, we will make some noise and we will definitely be part of the marketing campaigns.

9. Are you planning to branch into any other media, eg. digital ads on the roofs of cabs, or?

   We were conceived as a DOOH company; we want to move to other types of networks. Specifically in taxis there is not much more to do because there is a lot of regulation issues regarding outdoor advertising.

   However, we can always focus on increasing the number of screens/taxis and their technology. We are planning to focus on developing TAXI TV with the additional applications that we can offer for passengers and drivers (like maps, traffic, payments, etc.) and then start other specific networks where the value offer is more than a screen; interactivity, long dwell time, printing, mobile interaction and others.

10. On your web site, a video shows people watching TV and then going outside and getting into a waiting cab, and, similarly, watching a computer screen and then getting into a cab? Is there any correlation, such as ordering your cabs online, or is this just for illustrative purposes?

    For now there is no correlation. We are developing a solution to order taxis online and via cell phones, which will then allow a specific relationship between the passengers and the ads shown on the screens. If we know who ordered the taxi, we can communicate to him directly, taking into consideration exactly who he is, what he wants and all of his demographics.

    The video on out website is for illustrative purposes, trying to show our clients how to achieve a 360 degree media mix using our network.

11. Are your screens interactive? If so, please explain. If not, do you plan to make them interactive? Have you linked to mobile screens in any way?

    For the new system that we will have initially in 1.000 taxis, screens will be interactive. This will help to give a better service to passengers so they will choose what to watch but also help us measure their response and give more creative options to our clients.

    The network will also have a printer to print information and discounts; ads related to the position of the taxi; the weather and time of day; and even some variables that we’ll take from the car itself (eg: speed, curves, breaks, temperature and more).

12. Who are your top consistent advertisers? Do you have any long-term advertiser that has been with you from the beginning?

    Yes, we have had advertisers like Procter and Gamble, Coca-Cola, local banks, political candidates, government, telecommunication companies and more. In some cases, we have been able to get into their annual plans; with others, we have had to confirm their campaign on a monthly basis.

13. I believe you operate only in Colombia. What are your plans for expansion, and in what time frame?

    We operate only in Colombia.

    We have received some offers to start franchises in neighbor countries. That’s our idea; we believe that our know-how in such a difficult environment gives us the chance to be able to apply it in South and Central America. Once we are strong enough in Colombia, we will study countries like Ecuador, Peru, Chile, Panama and Costa Rica – always keeping in mind that the cities should be ones were taxi usage is recurrent and where a long dwell time gives us the opportunity to give an added value to clients.

14. Do you have a payment system attached to your screens/taxis? Is the payment system operated by Taxi TV as well?

    We are planning to do this. We face some interesting challenges because card payment in Colombia is very regulated. Because of money laundering risks and hackers, there are some limits in how to implement this. Hopefully, we will have it next year linked to our network and screens and operated by our company as well.

15. Are you active in the ACDOOH, the DOOH Colombian Association? In what way? What are the current key issues for the ACDOOH at this time?

    In Colombia, we were one of the founders of ACDOOH (Colombian DOOH Association). We are very active and believe it’s important, mainly to educate the advertising community regarding this new media.
    Next year. we would like to have a big event with international speakers, among other continuous activities, and slowly be able to introduce DOOH to the advertising community and to become an important part of the marketing budget.

Pueden seguir a Salomon en twitter: @salomonstroh. Tambien pueden ver en nuestro archivo, todos nuestros CEO Spotlight anteriores.

You can follow @salomonstroh on twitter and you can view, in our archive, all of our previous CEO SPOTLIGHTs by clicking here.

1. You are a huge company but weren’t very visible in the digital sector until the past couple of years. There’s been a major change seen. Tell us about this and the strategy behind it.

   Pattison Outdoor has had a presence in digital Out-Of-Home for quite a number of years. A notable asset was our large digital board on the corner of Yonge and Bloor in Toronto; installed in the late 90’s for CTV and recently removed as the property was developed. As technology has progressed and digital out-of-home is becoming more reliable and affordable from those early installations in the 90’s, we have continued to invest in both large digital boards and in digital networks. In the past few years, Pattison Outdoor has had a number of significant milestones in our digital growth. These milestones have given us more media exposure than before. But it is not indicative of our ongoing involvement and commitment to this form of out-of-home.

2. You now have about 90 digital horizontal screens and spectaculars. What is the difference between them? Are they an area where we’ll see expansion?

   In 2008, we installed the first in a series of large outdoor LED screens displaying static advertisements on a multiple ad loop. Today, we have over 90 screens ranging in size from 10′ x 20′ to 14′ x 48′ in Canadian markets from Vancouver to St. Johns Newfoundland. We will continue to grow our inventory of digital posters and spectaculars in markets where municipal bylaws and market demand make these boards feasible for us to grow.

3. You recently won the rights to the Toronto Transit Commission beginning Jan.1/12. Will we see a lot of changes compared to what TTC now offers? Will this include digital screens inside or outside the vehicles? Please explain your reasoning.

   The Toronto Transit Commission request for proposal for this new contract specifically requested bidders to offer new and innovative ideas for advertising on and within TTC buses and subway cars, as well as in the TTC subway stations. Pattison Outdoor, using the expertise of Onestop Media, included a significant number of new ideas and products which we expect to role out over the course of our contract. Without a doubt, the opportunity to use digital products in our offering played a significant role in how we crafted our offer to the Toronto Transit Commission.

4. You also recently won the rights to the West Vancouver transit shelters. In some cities around the world we’re seeing digital, and even 3D without glasses in transit shelters. Are we going to see any digital in the West Vancouver or other transit shelter properties?

   We closely monitor new products and technologies in the area of digital displays for street level products such as transit shelters, street ads and even the backs of bus benches! The challenge today is finding a high resolution, quality display, capable of handling the wear and tear of accessibility at the street level, with an affordable cost that makes digital transit shelters economically viable. We expect that this will happen in the foreseeable future, and when it does we expect digital displays in transit shelters will become commonplace in Canada.

5. What does the acquisition of OneStop Media Group offer you? It has been your property since last March. Will it continue to run as a separate entity? Can it be a catalyst for further expansion? If so, how?

   We are very excited by the opportunity to be working with the team at Onestop Media Group through the acquisition that took place in March. We had worked with them on a joint venture to build a digital mall network and appreciated the depth of knowledge and vision they had about digital out-of-home, particularly in the area of place based digital networks. The Onestop Media Group brand has a very strong connotation with the Media industry in Canada for digital leadership, knowledge and quality. We want to work with them to ensure that Onestop will continue to be that “go to group” for this kind of leadership in digital in Canada. With the support and strength of the Pattison Outdoor brand behind them, we believe that Pattison/Onestop has a significant platform for growth in the world of digital Out-Of-Home.

6. I believe you now offer some kind of an interactive mapping resource in the Out-of-Home sector. Tell us about it and how it differs from others?

   We recognized a number of years ago that our website was an important portal for both existing and prospective advertisers to learn about our company and our products. Putting all of our inventory on a mapping resource and then allowing the user of our mapping resourse to “pin” retail sites, create their own lists of surrounding products, pull down site photos of individual locations, or use goggle streets to drive by a particular board, literally gives them control of our inventory. But it is really when we are in our client’s office, working on their computer screen to view our inventory across town or across the country, that the ability to view, download and create specialized location lists and maps becomes an exciting media tool for advertisers to use.

7. Your company has won all sorts of awards. Have any of them been for digital?

   Numerous awards have been presented to Pattison Outdoor and Onestop Media Group for the innovative use of digital technologies in out-of-home advertising. They are not won by us, but rather by our clients and advertisers, who develop new and exciting ideas and ways to use digital media to deliver their message.

8. Tell us about Pattison Eyewitness as a campaign management software. Is it a software developed in association with another company or developed in-house. What does it offer clients, agencies, and your own company?

   We are very proud of Eyewitness.* It was launched two years ago as an online resource centre for our clients to find all their advertising campaign information in one location. From the initial advertising proposal, contracts and contract revisions, location lists, mapping, billing schedules, invoices, as well as real time photos of every creative installation – Eyewitness puts all the information to manage a campaign in one easy spot for the Advertiser, their Media buyer, creative department, accounting and campaign audit team to get any and all the information they need to place, monitor and manage a buy at Pattison Outdoor.
   * (Eyewitness is a trademark and wholly-owned product of The Siroky Group Inc.)

9. I believe you are Canada’s largest out-of-home company. Do you have any plans to expend beyond the Canadian borders? If so, where and when?

   We believe that Canada is a very dynamic country with significant opportunity for new out-of-home product growth, including digital out-of-home. While we watch with interest the out-of-home industry elsewhere, we are very excited about the opportunities that exist in the markets we are in today.

10. What is your personal background and how you ended up in your current position?

    I started in the outdoor industry with a small outdoor company in western Canada after completing a business degree at the University of Alberta. Sortly after I joined Hook Outdoor, it became part of the Jim Pattison Group in 1981. I continued in outdoor until 2000 when I moved to Orlando, Florida and joined the Ripley Entertainment Group, also a Jim Pattison Group company. I remained with Ripley’s until 2004, after which I returned to Canada to head Pattison Outdoor Advertising.

11. What are your thoughts about social media and mobile? Is Pattison integrating these into its offerings?

    We believe that social media and mobile present a great new way for advertisers to integrate their message through out-of-home right into the hands of the consumer. The technology is changing rapidly and new opportunities present themselves daily. The challenge is to have the advertiser understand how to integrate social media into their advertising strategy and how out-of-home can help deliver that strategy to the consumer.

12. What do you think is the key to Pattison’s success?

    Pattison Outdoor and Onestop Media are made up of amazing group of very talented people, with a passion for what we do and a drive to get things done. Customer satisfaction, from a job well done, is the only measure of success that we really concern ourselves with.

13. The Jim Pattison Group is reportedly Canada’s third largest privately-held company and holds properties outside the OOH and DOOH sector including Ripley’s Believe It or Not, and various companies in the food sector in Canada and the U.S.. Are there any plans to put digital screens in any of these properties?

    Within our group of companies, we are called on to be a resource of information and understanding for digital products and digital networks. Where we can assist in helping them develop digital products, we would do so.

1. I believe your company started as a production firm. How did you get into the DOOH field?

   In fact my original initiative was TV Mulher & Mãe (Woman & Mom TV), an exclusive TV channel delivered to maternity rooms in the best Brazilian hospitals. TV Mulher & Mãe later associated with SubWayLink, which has a POP digital network that includes WalMart, Magazine Luiza, American Express screens at the airports, among others. SubWayLink started activities about 20 years ago, as a video production company.

   My own career, prior to entering the world of DOOH, was in advertising agencies. I was President of Lintas Brazil and CEO of Young & Rubicam Group, first in Chile and then in Brazil.

2. You have three different networks. What are they, who does each one target, and how big are they in terms of venues, screens and audiences?

   SubwayLink has networks in some of Brazil’s largest retailers, as WalMart, Magazine Luiza (department stores), and Ri Happy.

   We also created the channel for Controlar (São Paulo city environmental inspections vehicular centers).

   TV Mulher & Mãe in hospitals and the Mulher & Mãe network is now also a Social Network, having Brazilian brand Natura as main sponsor. What we do believe is that all digital media will eventually merge with online networks and services, and we’re actively working towards this at a particularly fast pace.

3. You told me that new mothers watch your maternity channel an average of eight hours during the approximate three days from the time they enter the hospital to have a baby. What kind of content is on those screens? And how much of your screens are ‘advertising’ – although I believe it is not ads as we usually think of them?

   The average time in the maternity hospital in Brazil is about three days, and, according to the IPSOS Marplan Study, during these three days, women spend an average time of nine hours and 36 minutes watching TV Mulher & Mãe. Our content is comprised of 75% editorial, with some of the programs presented by star hosts of Brazilian TV shows.

   Regarding advertising, we usually create custom spots or adapt the advertiser’s original ad campaign or concept to specially fit TV Mulher & Mãe, so all the communication focus goes straight to the subject of motherhood, family, childcare and education. When we advertised a car, for example, we created a whole new film, where a Mom and her baby were shown using features of that model that were designed to help moms and kids feel comfortable and safe in that car. This is the kind of relevant message we recommend all advertisers adopt for our channels. We also create and adapt a lot of these ads, since our experience with the public sometimes helps advertisers in creating a stronger link with this public.

4. And how does the content and advertising differ on your other two channels?
   
   Point-of-Purchase channels need more direct, shorter messages, oriented to showing the product at the moment when the consumer is ready to shop. Different from TV Mulher & Mãe, where the audience is inside a cozy room with baby and family, in Point-of-Purchase everything tends to be fast and less-controllable. The media can sometimes be displayed in noisy spaces, and there is a lot of movement. So, to deliver messages in these conditions, we tend to display visuals that are simpler and easy to understand, with less screen movement (since everything around is already moving!).

   And sound is always a complement to the message; the message has to be completely delivered by visuals – with audio being often a complimentary aspect to the message. In some places, such as at the Environmental Inspections Vehicular Center, there is no audio at all, since the sound of motors running would cover it anyway.

   So everything is customized to the settings and surroundings. This is at the core of SubWay Link’s thinking, creating and producing DOOH.

5. When we met recently at Screen Media Expo in London, you were with Zé Luiz Tavares of PROOH who does some production for you. Do you also use other firms, or do you still do a lot of your own production?

   We do all our production of editorial content and a great proportion of the commercial spots,
   and sometimes we work with specialized professionals with complementary skills to develop some specific jobs, as is the case in our partnership with Zé Luiz Tavares, a great specialist in DOOH creative content.

   Major advertisers usually have a campaign they are running on other media too – and many times we act as consultants to advertising agencies, guiding them in the production with the objective of having a spot perfectly fitted to DOOH. Sometimes we produce it, sometimes we just create and supervise it. But we do believe that the production of specific content is one of our strengths, is part of our differential and part of what we are as a DOOH company.

6. Was Screen Media Expo the first time you have attended this event? Do you travel to other shows? Why, and what specifically interested you at this one?

   It was my first time at this event, but very often we travel to other events around the world, and this is part of thinking global. We do it as much as possible for all of our activities, and I tend to think that Brazilian professionals are quite open and eager to be up to date with trends. The communication and advertising industry in Brazil has always been much globalized. In addition, ABDOH (Brazil’s out-of-home association) frequently promotes trips that are opportunities for knowledge and exchange experiences, which we think is very relevant.

7. Are you planning to expand further in Brazil itself. And/or internationally? How? Tell us a bit about your growth strategy.

   Subway Link is an Endeavor Partner Company and adopts a global mindset. Right now I can tell you that we have expansion plans for Brazil and that we are analyzing expansion movements through Latin America.

8. When we met, you discussed a trend in Brazil towards consolidation. Tell us your thoughts on what is happening in that regard.

   Brazil´s DOOH business is somewhat more consolidated than its counterparts in United States and Europe. At first, it seemed that this consolidation would happen taking in account the locations of the networks. For example, It seemed that a group that focused on screens on buses would prefer to develop other media along the lines of transportation.

   But nowadays it does not seem to be the case. SubWayLink is strongly established in point-of-purchase networks but is rapidly expanding to points of waiting (as the association of TV Mulher & Mãe demonstrates). We believe that this consolidation will continue as a trend for the next years, with important gains of national scale – and SubWay Link will be one of the consolidators.

9. You also mentioned that Rio, Brasilia and Uberlandia are following the lead of São Paulo in banning DOOH. What are your thoughts on that?

   In São Paulo City, there is a strict regulation regarding signage at the streets – billboards or screens on the streets and public spaces. This, in fact, was an initiative largely supported by the population. At the same time, I believe that if you look at it from the perspective of the advertising industry, it brought positive effects: it enabled more quality and attention for the authorized media. Formerly, there was excessive visual pollution in our city and that distracted everyone, creating a scenario where no effort could gain much attention. And despite these restrictions, DOOH is growing stronger and with quality in São Paulo City. I think the same will be true in any other city: good quality DOOH is an important media and has a special place in great cities.

10. Are there opportunities for partnerships between Brazilian DOOH firms and North American or European companies? If so, in what areas?

    Yes, there are opportunities, especially in the development of technological solutions and innovative software that allow DOOH to measure its impact, and any resource that leads towards personalization of messages at the moment the audience receives them and the place where they are delivered.

11. A year ago, DOOH held 17% of the total OOH advertising spend, which, I believe, was a 75% increase from a year earlier. Do you know what that percentage is now? What specifically do you think is helping the DOOH sector grow in Brazil?

    Comparing 2009-2010 numbers, the growth of investment in advertising for the total market was at 17%, and OOH growth was at 16.18%. Digital OOH growth was more than 58%, now representing approximately 20% of the whole OOH media business.

    The market is beginning to show signs of maturity with DOOH acquiring a clearer understanding of its role. I believe this growth also comes from its qualified impact and relevant messages. DOOH is reaching people closer to decision points – while the audience is actively moving with their senses fully awake – which is an attitude significantly different from ‘passive watching’.

12. What are the main issues of concern within the members of the ABDOH, the Brazilian Out-of-Home Association?

    The setting of industry standards that can make easier for the advertisers to include DOOH in their media plans; measurements of audience and impact; checking – all these are pivotal concerns for the development of the activities, and naturally, are the main concerns of ABDOH.

13. Advertising in traditional media by Brazilian companies and agencies has taken many international awards at Cannes and elsewhere. Has this creativity translated into the DOOH field? And is there something (organization/universities/lifestyle, etc.) that fosters such creativity in your opinion?

    Definitely! Creativity is a strength of Brazilian professionals in many areas, advertising being just one of the most visible of them. I sense that there are currently two different ways to look at the creative challenge of DOOH. One way is to treat it like ‘animated billboard’; and I feel this vision tends to limit the possibility of our media.

    But on the other hand lies the vision of treating DOOH as a new form of ‘television’, with the focus on content; building new means of communicating with the audience in the various places it can be found during the course of its day, week, month – and the various different moments, moods and needs that each of these moments require.

    This is the approach that I believe will get us to explore the full potential of our medium. And in this sense, there are professionals in Brazil that are truly innovative and that are pursuing this quest for a language and the formation of a style of communication that works perfectly in DOOH. Right now, this is a work in progress, everywhere, but I’m positive in my affirmation that Brazilians are and will be a driving force in the creative aspects of DOOH.

This month, we welcome Lorne Abony, chairman and CEO, Mood Media Corporation, Toronto

1. How did you personally get into this field? Tell us a bit of your own background and what propelled you in this direction.

   I founded a number of start-ups in growth industries over the years, including online pet supply business Petopia.com in 1998, and FUN Technologies in 2002, which grew to become the world’s largest provider of online casual games and fantasy sports with over 35 million registered customers.
   Mood Media Corporation is similar to them in that in-store media has huge growth potential worldwide and, as the only supplier of fully-integrated in-store media services, Mood Media Corporation is set to grow with it.

   I started my career as a corporate and securities lawyer in Toronto after graduating from the University of Windsor law school in 1994, but opted for an entrepreneurial career as I find making money for myself more compelling than guarding the securities of others!

2. You offer a mix of music, visual and even scent in 800 retail chains in more than 30 countries. What is the difference between your two divisions: In-Store Media and Retail Point-of-Purchase? Do they each have separate management, sales staff, etc. And is one division growing more than the other?

   Our in-store media division is about working with retailers to build a powerful communication media channel for their customers, this can be either an in-store TV network or a branded radio station. The Retail POP division is about physical media for sale within a retail space.
   Both businesses are complimentary in terms of media assets but offer a different business proposition. Even though both divisions have separate management and sales staff, they are completely complimentary.

3. Phone calls to Mood Media sometimes get answered under a different company name. Are you involved in several different companies? Where does Fluid Music fit into the mix?

   The headquarters of Mood Media Corporation is based in Toronto and shares an office with our Retail POP division, Somerset division, currently being renamed to Mood Entertainment. When Fluid Music purchased Mood Media Group in June, 2010, the parent company which was known as Fluid Music renamed to Mood Media Corporation.

4. You do a huge amount of traveling throughout North America, Europe, Asia and Australia. Where do you see the most growth potential for your product mix and why?

   All of these regions present huge growth potential for Mood Media Corporation, which is why they comprise our key markets. However, Asia – and the Chinese market in particular – is one of the most promising among these. While in-store media is mature and well understood in most territories around the world, it is still considered a new segment in China. This is changing quickly as Chinese retailers are starting to understand the substantial sales uplift a managed media service generates.

5. If you weren’t in this field of business, what can you see yourself having done as a career? Is it something you can or do pursue as a hobby?

   Competitive tennis is one of my favourite pastimes. I was a member of the Team Canada men’s tennis team, which competed in the 2009 Maccabiah Games in Israel and I also competed in the USTA Men’s NTRP 5.0 Florida Section, where I was ranked fourth in the state in 2010. Of course, I would love to take up full-time competitive playing but, for the time being, I try to win most of my aces on the stock market!

6. I see that you acquired Pelika Business Music and Muzak recently. Is most of your growth via acquisition or organic?

   We will grow via acquisition and organically. Pelika was bought due to its clear market leadership in the Nordic region on digital business music solutions. These combined companies have helped to create a clear leader in the in-store media market with the potential to become a globally recognized brand.

7. You have TeamCo, your own proprietary software, to manage content, but I see thatyou partner with many different companies for hardware. Why?

   We consider ourselves as media providers and will always work with the best display technology solution that fits our clients’ requirements. We have an international network of project managers, installers and audio-visual specialists who will work with the likes of NEC, Prysm and Christie where the project requires it. In these cases, we act as an integration specialist. Working with external partners to provide hardware allows us to focus on our unique consultative process, which results in innovative software and integrated in-store content. It also allows us access to a much wider pool of hardware solutions.

8. How do you deal with content, considering that you are operating in many different countries and with such a product mix? Do you have your own in-house content development team?

   We are confident we have one of the largest libraries of audio visual assets within our industry. Our consultative content development team is at the core of Mood Media’s services. We work with clients to tailor content specifically to the tastes of their customers, which can change throughout the day or geographically, depending on where each store or business is based.

   Increasingly, we create a global media channel with localized content and we can offer this as our media planners and consultants all build local libraries as well as input to our global media database. We have a stringent content screening process so that we are confident we create the most effective media channel for our clients in every market they operate.

9. You offer scent, something that has been something of a controversial topic in the media regarding the use of scent in retail settings. Do many customers use it? Where, predominantly? Is it usually used alone or in association with screens and/or music. Does it really increase sales?

   Scent is a small part of our overall in-store media business and is mainly focused on the retail sector. The benefits of scent solutions are manifold: a range of studies have shown that they can influence customer buying decisions, compel them to stay in-store for longer, raise a company’s brand profile and increase employee productivity.

   Our in-store scents are fully compliant with IFRA and the technology we recommend ensures our diffusion is completely safe. We find fashion and hospitality brands show the most interest in scent and want to look at it in conjunction with audio and visual media solutions.

10. Describe the content on your screens. How much is advertising? What kind of advertisers do you have?

    The content on our screens is completed in consultation with our clients and is dependent on their aims. This is why our in-store visuals are so effective and innovative: we aim to engage, inform and entertain customers with relevant content, not make them switch off by bombarding with streams of messaging that is irrelevant to that shopping environment – it’s always got to make sense and work in conjunction with the brands communication channels.

11. What is Mood Media’s growth strategy over the next five years?

    We plan to consolidate our position in our key markets in Europe, the US and Australia, while expanding into and gaining traction in the huge growth markets of Asia, which represent someof the world’s fastest moving economies.

    For example, two of our recent announcements truly create the scale we want to achieve in Western-markets and set the stage for expansion in the East. On March 15, 2011, Mood Media announced it was determined on expanding into China and was in talks with partners to build operations in-market. On March 25, Mood Media announced its intention to acquire Muzak, the largest and most recognized in-store media brand in the United States.

12. You sell music and PC games. Is this though in-store kiosks or via mobile or? Do you have deals with music or game producers?

    Our PC gaming and compilation music offerings are sold through innovative, interactive in-store kiosks, which allow customers to experience the product they are interested in buying prior to purchase. We work with leading games producers such as Mumbo Jumbo and Big Fish Games; we also produce and distribute the work of critically acclaimed artists such as Multi-Grammy nominee Jim Brickman, Loreena McKennitt and Jewel.

13. You are a public company. What was Mood Media’s revenue and profit last year? How were you affected by the recession?

    We had a strong performance in 2010. Revenue was $145 million and Ebitda $29 million. All our results are available on our web site. We always ensure our media solutions drive growth and achieve our client’s goals, so we find that during a downturn our solutions are often given more priority and further investment is made in promoting key messages at the point of purchase.

14. Give us your thoughts on the use of things like interactivity, 3D, QR codes, augmented reality in relation to your offerings, now or future.

    Integration of all these technologies is key and ensuring they compliment the retailer’s core objectives. For Mood Media, we ensure whatever the technology, the content is right for the display technology and is actually doing something of benefit.

1. Your company has an interesting name. Why was it chosen? Do you find it a strong brand name and why?

   Our company name is very interesting and always generates an inquiry from people to learn more. Our name is derived from the broadcasting business and although we are specifically a narrowcaster, our screens are for people that are mobile or on the ‘go’, hence the name GoGo Cast.

2. You’ve been in business for close to 20 years, starting several companies before GoGo Cast. What did you learn from these, both the successes and failures, that you now apply to sustain GoGo Cast?

   Being a serial entrepreneur, or for lack of a better word, a ‘start-up junkie’, I have learned a great deal about the pitfalls of start-ups and how to best avoid those for a greater chance of success. Where most start-ups fail is in the planning, capitalization, branding and marketing of their products. Most inventors can create a good product, even a unique product, but bringing it to market and making it a success is a very different animal.

   What I have learned is to have a good business plan and road map that details the company’s need for capital and its ability to scale as the demand for the product grows. Being undercapitalized is almost always a recipe for failure. Having a fantastic management team in place and creating a strong brand with effective marketing for the company and the product will drive demand and create scale, which in turn drives success.

3. You are currently focused on two specific areas: convenience stores and pharmacies. Are you limiting GoGo Cast to these two sectors? Tell use about each of these and your expectations for growth in each.

   After several years of research and development of industry specific content and tools, we have found that the convenience and pharmacy spaces were the most underserved, and that has created the most opportunity. In an average week, a convenience store will see roughly 5,000 visitors. Our traffic is significantly higher since we only put screens in stores with 7,000 or more visitors weekly. One of our convenience stores averages 30k in weekly visitors.

   Whereas the web measures exposure per click or impression, our CPM is based on foot traffic. We monetize according to the people going into the stores. Today’s traffic is on the go, and we have the platform to capture the attention of those on-the-go movers out there.

4. You bought a company called Digital in Motion in October, 2010. What did this give you? Can you tell us how much you paid, or how you priced the transaction?

   The terms of that transaction are confidential but I can say the purchase was a combination of cash and stock. Digital Media was able to secure an exclusive contract for the independent pharmacy association, but did not have the adequate resources to fulfill the agreement, which made it a natural acquisition target. GoGo Cast was among several companies looking at this transaction, and was successful in putting together a package that made sense for both parties. We have already begun deploying in independent pharmacies in New York, New Jersey, and Pennsylvania, and will continue to execute on the agreement throughout 2011 and beyond.

5. Some (or all?) of your screens show news, weather and sports. Do either the convenience store or the pharmacy sectors also have any original content? If so, what, and who provides same? If not, why not? And what percentage of a loop is advertising vs content?

   We use all the standard protocols the web supports, so any website content or rss/mrss data can be easily shown on our screens. We even offer ‘MyGoGoCast’, where individual screen location owners can post their own unique content relevant to their store and their community.

   New technology takes time to become accepted, and our model allows new location owners to move at their own pace, layering in GoGo Cast features as they are ready, and as their customers request it.

   And what percentage of a loop is advertising vs content? It changes depending on the ad inventory sold but generally it is a 70-30 split, ads to content.

6. I notice that you offer stores the ability to blacklist content, filtering out products or services that they consider inappropriate or preventing rivals from infiltrating their stores with competing advertising. Is this something that you found necessary to put into practice? Why – and how often is it actually used?

   Absolutely. Our platform gives the ability for each brand to control what is shown on the screen, hence making their brand the superior brand. We use it all the time. It is built into our data model through keywords and content tagging.

7. Much of your business is in the eastern U.S.. What are your plans for expansion nationally and internationally?

   As the need arises we will evaluate each opportunity as it applies to our business’ growth.

8. Who sells advertising for you? Do you also use aggregators?

   We started off with aggregators, but what it really comes down to is who buys the ad slots on our network. Lately, the national advertisers have stepped up and are currently purchasing inventory wholesale.

9. You offer both a variety of screen sizes and kiosks. Where are each used? What do your kiosks offer? And whose management software backs your networks?

   We are mostly focused on delivering 42” screens to convenience and pharmacy locations. Our engineering staff is made up of the some of the same engineers that developed the Netscape Client and Server software. The majority of our development team is based out of Silicon Valley. We use our own commercial software to control and deliver content to the screens. We developed our own web.

10. What do you think about 3D, couponing, mobile interactivity, other new technological offerings?

    3D isn’t at the level where consumers on the go will use it. There are some creative 3D effects today but I don’t see advertisers paying a premium for them yet.

    We invested a significant amount of capital in mobile technology. In the coming months we will be bringing to market the most advanced integrated solution to the digital signage space to date. We will be incorporating social media, geo-fencing couponing and full vendor portal campaign management for manufacturers, convenience store and pharmacy chains.

11. Tell us about the research and analysis that you provide for advertisers.

    We give them weekly traffic counts, play counts, audience demographics and total sales.

12. Are you interested in a) raising venture capital in the near future; and b) acquiring further companies – or being acquired?

    We are a very well capitalized company and do not have a current need for new equity. We do, though, have several large deals in the pipeline that, should they close, would require additional capital. We are always looking for business combinations that make sense, whether we are the acquirer or to be acquired at the appropriate time for a meaningful valuation.

1. Give us a little on the history of Panel Media Group, including who founded it and when, how it evolved from its initial plan, and who owns it now.

   Panel Media was founded in 2005 by a group of entrepreneurs looking to capitalize on the emerging trends in the media and advertising space. The genesis for the business was to offer advertisers a better way to reach the desirable 21-35 year old demographic in the out-of=home arena.

   Being one of the first companies to embrace digital out-of-home, we have had the benefit of being around while the industry was just getting started so we’ve learned quite a bit over the years.

   The company is majority owned by Crown Media, LLC, a media holding company with investments in outdoor advertising, digital out of home and mobile advertising.

2. Digital screens targeting the young and affluent nightlife crowd in bars and restaurants are only part of your product line. You also have many other below-the-line offerings and guerilla marketing. What percentage of your business involves digital screens, what sizes are they and where are they located?

   Our primary goal is to deliver maximum results to our clients. We listen to their needs and react quickly by providing them with a media campaign that meets their criteria. Having developed good relationships with our network of locations, we are able to execute all sorts of campaigns including Backlit Billboards, Restroom ads, Street Teams and Mobile Proximity Marketing. About 80% of our offerings are digital, using 42” screens.The backbone of our network is in New York, Los Angeles, Chicago, Miami and Boston,—and we’re continuing to grow.

3. Since your founding, have you been involved in any acquisitions? Are you interested in making acquisitions or developing partnerships in the U.S. or internationally? Or, of course, being acquired?

   We are always looking for opportunities to add value to our business and have been approached by many companies in our space regarding potential partnership or acquisition opportunities. In fact, we are working on a very large partnership that I can’t speak about right now. Our owners are happy with the way our business is developing so I don’t see us selling. We’ve looked at acquisitions but they haven’t made a whole lot of sense for us at this time.

4. What are your priorities in 2011?

   Innovation, growth and delivering for our clients.

5. What made you decide to target the young and affluent market? Does this limit your possibilities for growth? Is the restaurant/bar market becoming saturated with a lot of competition?

   Our network targets young adults 21-35 because they are trendsetters living in dynamic urban markets such as New York City and they are receptive to our products and our clients’ messages. This does not limit us at all as not surprisingly most advertisers seek this demographic. As far as competition is concerned, we are confident that we offer advertisers the best locations in each of the markets that we serve. We want to be in the best locations that are high traffic and well- known venues. We believe strongly in focusing on and growing our own business.

6. What are your plans for expansion? Are you interested in growth in certain cities? International growth? Or into new venues and target markets?

   We are focused for now on the bar and nightlife venues—we still see massive opportunities for growth in that market and we feel it’s among the best locations for advertisers to consider in the out of home space. We have an expertise in this market that has taken time to develop.

   In terms of international growth, we’re always open to the possibility but we’ll take it one step at a time.

7. Do you have clients that only use your digital screens or do most of your clients use a mix of your services? Please elaborate a bit.

   While the majority of our campaigns have digital, we also offer a compelling list of additional services to our clients and are even willing to take-on something special or unique should they want it. A great example of this occurred recently when a major wireless company that has been a consistent client of ours on the digital network engaged us for a cling campaign outside of the bar and nightlife network as well. Other examples include a major beer company that recently bought our digital network along with Mobile Proximity, and a popular online dating site engaged us for digital and guerilla marketing services.

8. Who is your oldest client, since when, and how does it use the Panel Media Group’s offerings?

   Universal Music is our oldest client. They run a lot of their new release artists through us. They show a 30-second clip of the music video stating that the release is now available. I actually have a funny story about this advertiser. One of their artists, Ryan Leslie was eating at Dallas BBQ in Times Square and saw his ad running during his meal! He was very happy!

9. Do you use a partner for software or have you developed your own proprietary offering? Why, in either case?

   We use a partner for software. I can’t reveal the name at this time. We aren’t a technology company. We’re a media and marketing company. We have to focus on our strengths.

10. What do you see as the most important current influence or technical development affecting the DOOH world? Is it affecting your company at this point in time, and, if so, how?

    As with any business that incorporates technology, there are always new offerings that can change the landscape. One of the most recent technological developments for us has been the introduction of 3D screens into our network. We believe that new technologies such as the 3D screens will only serve to bring more advertisers to the DOOH world as they see it not only offers clients a more targeted campaign but also better consumer interaction.

11. I believe you offer creative services through an agency called Gotham Network. Is this a company owned in part or in whole by Panel Media? Does it work only for your clients?

    We do offer creative services. (We dropped the Gotham name a few years ago).

12. Are there any new offerings you’d like to add to your digital platform in the next two years? What is your strategy for growth going forward?

    As I mentioned earlier, we are currently the first digital advertising company to release 3D ads on our network. We’ve licensed a proprietary technology that allows 3D without glasses! The reaction so far has been tremendously positive. We are running a test campaign for a major brand in NYC with plans to roll this offering out nationally this year. Very exciting stuff!!!