Garry McGuire, the new CEO of the recently merged Danoo and IdeaCast is hitting the ground running. In addition to renaming the company Reach Media Group, the digital out-of-home company announced Wednesday (Aug. 19) a reorganization of its merged assets into three audience-targeted networks to make digital out-of-home more attractive to advertisers.
Following Danoo's acquisition of IdeaCast in early July, the company grew from two to four digital OOH networks, two targeting the business traveler. The merged company will offer advertisers 15,000 screens organized into three networks: Business Traveler, which combines the former Danoo Traveler Network in 150 retail locations in 25 airports with IdeaCast's Airline TV network in 7800 airline seatbacks of JetBlue, Frontier and Continental Airlines; Health & Fitness Network, the former IdeaCast Health Club TV Network in 700 health clubs in more than 100 markets; and Urban Mobile Network, the former Danoo city network in 850 coffee houses and cafes in the top 5 markets.
"We're moving away from a technology company to a media company," said McGuire, who took over as CEO in late July, just weeks after the company acquired IdeaCast. "The primary product we offer is audience in venues with extended dwell times."
Each of the three networks will be headed by a vp/general manager, reporting to Jason Brown, president of sales. Adam Schoenberg is the vp and general manager of Business Traveler Network, and Tess Mallery is the current vp and general manager of Health & Fitness Network. Both are former directors of sales for IdeaCast. The vp and general manager for the Urban Mobile Network will be named soon.
RMG's end goal is to grow from delivering its current 30 million monthly impressions to 100 million, either by creating new, niche networks or adding to its current networks. The company is even inviting other networks to affiliate with its networks in order to increase the sales proposition for advertisers, a new trend that is emerging among out-of-home digital networks to make the fragmented medium easier to buy.
"We're looking for strategic demographic audience segments that we can aggregate to the No. 1 or No. 2 position in the market that have high value to an advertiser," McGuire said. "We're looking for defined niches."
One of the fastest-growing media, digital OOH video has suffered from rampant fragmentation. But with companies such as Danoo looking to consolidate in the space, forecasters predict spending will enjoy double-digit gains. This year, the space is expected to grow 5.8 percent to $1.5 billion, according to Veronis Suhler Stevenson.
Related: Danoo Acquires IdeaCast
Related: Danoo Names McGuire CEO