Zoom Media & Marketing announced today that it has signed a definitive agreement to acquire Alloy's Insite Advertising business which consists of media frames in restaurants, bars, and nightclubs throughout the United States. The deal positions Zoom as the overwhelming leader in the bar and nightlife advertising category. Financial terms were not disclosed.
As part of the agreement, Zoom will immediately assume responsibility for all sales, marketing, and operational functions associated with Alloy's Insite business, which consists of billboards in over 2,000 venues in over 50 markets across the country. With this transaction, Zoom now operates over 4,000 venues with over 20,000 billboards across the U.S. in its bar media business, which is part of the company's Social Network. While both companies pioneered the bar advertising category in the late 1990's, Zoom's deal for Insite creates a national platform that is unrivaled by any other media firm.
In addition to offering two types of static billboards and an extensive promotional business, Zoom has also been leading the industry by rapidly introducing digital billboards. The company currently has over 300 digital billboard venues in its Social Network, and recently announced plans to increase that number to 500 this spring.
'The 21-34 year old demographic is the most valuable but difficult to reach segment in the advertising industry,' said Zoom Media & Marketing President, Dennis Roche. 'This transaction cements our ability to offer advertisers a comprehensive approach in terms of impacting these trend setters, and positions us as the market leader within the nightlife media category.' Roche also emphasized Zoom's focus on introducing digital billboard offerings to the Insite venues, which will 'create additional and more flexible mediums for marketers to communicate with this highly desirable segment,' he said.
A Hot Category
Interest and activity in the bar and restaurant space has surged in the last year as media consumption habits of younger consumers have accelerated the trend away from traditional formats. In fact, bar and restaurant patrons spend an average of over two hours in an establishment, creating a highly social environment where 'buzz' marketing and customized branding messages have proven very effective. Additionally, these patrons are thought leaders who over-index on a wide variety of purchase and category usage- from movie attendance to technology products to personal care, and more.
Among the 45 million patrons per month who frequent Zoom's expanded Social Network are various sub-segments that allow for highly targeted marketing opportunities. Specifically, Zoom now has over 1,000 venues reaching Hispanic and African American consumers, as well as sports, nightclub, and gay and lesbian sub-segments.
In addition to its expanded Social Network, Zoom operates a Fitness Network of over 800 health clubs and an Active Family Network of over 500 family sports and recreation facilities. 'This marks an exciting step not only in our growth, but in leading and defining the Targeted Out-of-Home media industry,' added Roche.
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