Developing Business Performance Of Digital Out-OfHome Media Industry

Abstract

The market share of Digital Out-of-Home (hereinafter abbreviated DOOH) media industry in
Indonesia was dominated by two or three companies that controlled more than 30% of the entire outdoor
media business format. In addition, the decrease in sales prices lowered the level of profitability. This
condition was associated with the problems in the development of creative content, distinctive capability and
market attractiveness in the industry. This study aimed at investigating the effect of market attractiveness
and distinctive capability on the development of creative content and its implications on business
performance in the DOOH media industry. Structural Equation Modeling employed in this study required at
least 200 observations. Thus, there were 200 samples from DOOH media companies located in Jakarta,
Bandung, and Surabaya taken as respondents for the questionnaires using proportional stratified random
sampling technique. The findings revealed that creative content had stronger effect on the improvement of
business performance of DOOH media industry in Indonesia than market attractiveness and distinctive
capability. In addition, market attractiveness had stronger effect on the development of creative content than
distinctive capability.