NEW YORK Investors may have soured on traditional media, but not on digital out-of-home.
Zoom Media & Marketing, one of the largest DOOH companies, today said it has raised $30 million by selling a minority stake to ABS Capital Partners. Cash in hand, Zoom plans over the next 18 months to expand its place-based digital networks and acquire others.
Dennis Roche, president of Zoom's U.S. operations, said the deal with ABS cements the firm's standing as a leader "in the fitness, bowling, family entertainment and nightlife industries."
Zoom currently operates digital networks in more than 2,500 venues concentrated in the top 90 DMAs. It also handles static indoor advertising at more than 8,000 locations.
"The company's digital approach enables Zoom to address the rapidly increasing number of advertisers who, dissatisfied with their returns on other traditional media, embrace their targeting abilities within their high dwell environments," said Deric Emry, general partner at ABS.
Highly fragmented and served by hundreds of media companies, the emerging DOOH industry is ripe for consolidation. In 2008, the largest portion of capital invested in out-of-home (more than 60 percent) was in the digital sector, according to Peachtree Media Advisors, which is forecasting a repeat performance this year.
DOOH generated more than $2 billion in advertising last year, per PQ Media, and most pundits predict growth for the sector, even in a down economy.