Consolidation in the Place-Based Media Segment

Picture 26Digital out of home has been a growing media segment. It’s interesting to me also because it’s “place-based,” meaning the screens where you see the media and advertising are in particular locations, although in most instances the ads and content are only nominally local. Yesterday two of the more visible players in the category, Danoo and IdeaCast, announced they were combining:

Danoo, a leading digital location-based media network with interactive video screens in popular retail locations, has acquired IdeaCast, the leading provider of advertising in the rapidly expanding captive television category. This combination creates one of the largest and most advanced media platforms in the location-based media space. As part of the transaction, National CineMedia, LLC (NCM), operator of the largest digital cinema network in North America for cinema advertising, alternative entertainment and events, and Kleiner Perkins Caufield & Byers (KPCB), a leading venture capital firm with a rich history of building entrepreneurial investments into successful enterprises, will each hold a minority interest in the new company. The assets acquired by Danoo had been previously acquired by NCM from the original IdeaCast entity. The new Danoo corporate entity will continue to operate and sell advertising across its digital media networks under the Danoo and IdeaCast brands.

Danoo and IdeaCast have exclusive contracts to present content and advertising in thousands of high traffic and extended dwell time venues, including top-tier health clubs, airport newsstands, seatback TVs on JetBlue, Frontier and Continental Airlines, and a dense concentration of coffeehouses, upscale delis and cafes in the top U.S. media markets. The arrangement unites the best location-based media opportunities with leading technology, such as transparent ad insertion, IP-based geo-targeting, mobile interactivity, digital content distribution and dynamic content localization. The new entity provides advertisers and marketers an unprecedented platform to reach the elusive upscale mobile professional underserved by traditional media such as television.

This combination will give the new company much more leverage and clout with advertisers, as well as reach with consumers (it’s all about reach). Existing local sales channels haven’t really tapped into Digital OOH as a distribution medium to date. RippleTV offered (I don’t know if it still does) a unique self-service ad capability.

One of the more recent developments in the space, Danoo (in its earlier incarnation) added mobile marketing as an extension of what it was doing. This mobile-traditional media (although Digital OOH isn’t really traditional) combination is going to be more and more prevalent.

2 Responses to “Consolidation in the Place-Based Media Segment”

  1. Mike Mehlmann Says:

    In response to your article on Danoo acquiring Ideacast, we have some recent experiences to share relating to your comment in the article…

    “Existing local sales channels haven’t really tapped into Digital OOH as a distribution medium to date. RippleTV offered (I don’t know
    if it still does) a unique self-service.”

    Ripple found that the self-service model brought in very little lasting long-term ad revenue. But, Ripple has proven that with the right management team, systems, people and focus, lasting local ad revenues can be sold. Since January of this year, On The Go Media Network has been successfully selling local (single market) advertising for Ripple using unique DOOH specific methodologies.

    Most DOOH companies have strong expertise in operations, technology, finance and national ad sales. And, those that do not, are outsourcing these areas as the industry has plenty of suppliers capable of meeting their needs.

    When it comes to local sales, what we have found in the industry is that the wrong attitude (with local as an after thought…or worse as the ever elusive “long-tail”) has produced poor results. Many companies think that finding a few good reps is the answer. All of these we have heard of have failed, or are failing in local because there is no infrastructure, success models or the consistent daily leadership needed to drive long-term scalable local ad revenue.

  2. Greg Sterling Says:

    Very interesting. Would be interested to talk “offline” Mike about your experience.

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