Out-of-Home Consolidation Begins? Danoo Buys IdeaCast
Out-of-home media — initially billboards and electronic signs, but now extending to the flat screen TVs at gas stations, groceries, retailers, on elevators and buses, and in fast food restaurants — is getting a big push. But many questions about the industry remain — i.e., who the key players will be, where will they be, and the industry’s real impact on advertising (destination or complement?).
At this point, the big players, in terms of money raised, rollouts and partnerships, include Ripple TV, Premier Retail Networks, Zoom Media Group, Channel M, Ad Space Digital Mall Nets and Danoo.
While some of these have formed specializations (i.e., malls), there is bound to be consolidation. And if the industry looks like it is an important component of local media, leaders may eventually be rolled up by larger media companies.
Last week, Danoo, a Kleiner Perkins project that launched in 2006, took a step toward consolidation in buying IdeaCast — effectively merging its 850 owned and operated screens with IdeaCast’s more extensive (but unowned) programming network of airplane, health club and hotel screens.
IdeaCast’s airplane network alone comprises 7,800 screens. Its health club network exceeds 1,000 screens. Under terms of the deal, IdeaCast’s seller, National CineMedia, becomes a minority shareholder in Danoo, which now has 70 employees.