CBS Buys SignStorey

NEW YORK CBS has entered into an agreement to acquire SignStorey, a distributor of in-store advertising and video networks, for $71.5 million, the network has confirmed.

CBS said that upon completion of the deal, expected in the fourth quarter, it would rename the in-store specialist CBS Outernet. The name is derived from the network’s self-described “outernet strategy” that has relied increasingly on out-of-home venues such as retail and placed-based outlets to promote its programming to consumers.

“CBS Outernet will offer our advertisers a tremendous, broad new platform to reach consumers out of their homes,” said Leslie Moonves, president and CEO, CBS Corp., in a statement. “This acquisition is highly complementary with many of CBS’ content and advertising sales relationships.”

With digital video displays in more than 1,400 grocery stores in markets across the U.S., SignStorey offers advertisers the ability to reach consumers with targeted content that can be customized by region and by daypart.

SignStorey has exclusive contracts with SuperValu (Acme, Albertsons, Jewel and Shaw’s), Pathmark, ShopRite and Price Chopper, among others, and is currently installed in six of the top 10 markets in the U.S., with traffic of more than 72 million monthly consumers, CBS said. Johnson & Johnson, Colgate, General Mills and Dannon are among the company’s packaged-goods advertisers.

CBS has partnered with SignStorey in the past as part of its program promotion strategy. “Out-of-home digital media has become a crucial means by which we and advertisers can gain invaluable impressions in this crowded media landscape,” said George Schweitzer, president of the CBS Marketing Group.

In addition to SignStorey, CBS has agreements with American Airlines, Royal Caribbean and Starwood Hotels, among others, to promote its programming in various out-of-home sites.