Looking to increase the scale of its network of web-connected video screens in retail locations across the United States, Danoo has purchased IdeaCast, which has its own digital network targeted at “captive” audiences on planes and health clubs. Financial terms of the deal were not disclosed. IdeaCast’s previous owner, National CineMedia, which has its own network in movie theaters across North America, and Kleiner Perkins Caufield & Byers, a Danoo backer, will each have minority stakes in the combined company.
Danoo says that the new company will not only provide media buyers with greater reach but will also allow them to better target their messages to specific geographic locations. Last month, Danoo also said it had begun to roll out a new offering that would expand its network to mobile phones, by encouraging viewers of Danoo screens to download advertising content like ringtones onto their phones.
Both Danoo and IdeaCast said that one reason for the merger was that the out-of-home media market was in need of consolidation. National CineMedia CEO Kurt Hall described the market in a statement as “still overly fragmented” and said that the “combination is an important step in our effort to bring greater national reach and more standardized buying metrics to the media community.” In an interview with VentureBeat, Danoo CEO Aileen Lee made a similar point, adding that ad agencies themselves are becoming bigger. She also tells MediaPost that the company could continue to go shopping since it is “well-capitalized.”
VentureBeat points out that even prior to the deal there were signs that the market was starting to consolidate, including the recent joint venture between Outcast and Adtek Media, which have their own networks in gas stations. Release.