Canadian Digital OOH Firms Swap Networks; Get Vertically Focused
June 9, 2015 by Dave Haynes
A pair of Canadian indoor advertising companies that have both competed for business and collaborated on projects for the last 20 years have traded network properties in a move that allows both to focus on well-defined verticals.
Montreal-based Newad is buying the restaurant/bar, campus, fashion, business, media and golf networks from Zoom Media, also from Montreal. In return, Zoom is taking over Newad’s fitness establishments.
Financial terms of the deal were not disclosed.
Marketing reports that the two companies have been in discussions since spring. It means Newad now has the largest number of indoor ad faces in the country, with a total of 45,000 digital and static boards across 5,000 locations. Zoom now “owns” the fitness space, with 5,500 digital and static boards in more than 750 gyms.
It also means media planners need one buy to get the coverage they’re after, instead of splitting between the two networks and possibly/probably forcing pricing down.
The companies told Marketing they both plan to continue investing in digital advertising at an “accelerated pace” over the next few years. Newad has almost 2,000 digital screens while Zoom has 1,500 digital screens.