Astral Out-of-Home has re-emphasized its commitment to large-format digital advertising with the acquisition of Edmonton independent Macdonald Outdoor, which operates nine large-format (12 by 24-feet) digital boards at “strategic” intersections throughout the city.
A purchase price for the deal, which formally closes June 30, was not disclosed.
The Bell Media unit also announced its intention to add 12 more large-format screens throughout Calgary and Edmonton, bringing the total number of large-format digital screens it operates across Canada to 73.
The majority of Astral’s new digital boards—which will measure either 10-by-24 feet or 14-by-48 feet—will go live Sept. 8, said senior vice-president of real estate services Ron Hutchinson.
With an existing network of large-format digital boards in the major markets of Toronto, Montreal and Vancouver, Hutchinson said Calgary and Edmonton were logical targets for expansion. Both cities are attractive to Astral because of their strong economy and population base.
Macdonald Outdoor was among the largest independent operators in the digital space, while Hutchinson also lauded the distribution, location and design aesthetic of the screens.
“They had—without doubt—the best network of screens of anyone in the market,” said Hutchinson. “Regardless of what was for sale, that would have been our top target. At Astral we believe in good design and a lot of those finishing details, and [Macdonald] is much the same way. They’ve built something that is not run-of-the-mill.”
Macdonald Outdoor screens are curved, with complementary surrounding landscaping.
Aesthetic appears to be a key consideration for Macdonald Outdoor founder Greg Macdonald. The company’s screens are curved, while their surrounding environment has been landscaped with rocks and water features. “He’s very possibly gone over-the-top, but they look terrific,” joked Hutchinson.
Macdonald is joining Astral as general manager of the company’s new Edmonton operation, bringing his six-person sales and operations team with him.
The latest Global Entertainment and Media Outlook report from PwC states that digital will be a key driver for the out-of-home industry in the next several years, helping ad revenue grow 6% a year to reach $814 million by 2018.
Astral is committed to growing its digital inventory, but said that any build-out will be limited by municipal bylaws governing the type of sign that can be erected. “It’s not easy to acquire those permits—bylaws are quite restrictive,” said Hutchinson. “I don’t think there’s ever going to be any massive wholesale conversion to digital.”
Acquisition is the other option available to out-of-home companies, although Hutchinson said the number of potential takeover targets offering a desirable combination of size and product set is “fairly limited.”
