Cieslok Media has expanded its presence in Western Canada with the acquisition of four double-sided LED displays from Edmonton-based AdQ Media. A purchase price was not disclosed.
The transaction involves eight curved screens measuring 12.5-feet x 25-feet and 12.5-feet x 30-feet. The screens offer a combined 251,000 daily impressions, according to the AdQ Media site.
Cieslok plans to open an Edmonton office to handle regional sales for the screens, with national sales handled out its three offices in Vancouver, Toronto and Montreal.
Cieslok president and CEO Jörg Cieslok said the purchase complements his company’s “aggressive” organic growth in the digital out-of-home industry. The company is committed to adding inventory in the top six markets, he said.
“Overall we’re very active in trying to find acquisitions that make sense for us,” said Cieslok, adding that he remains in talks with several independent companies. “We’re growing as much as we can through our own business development efforts, and we’re looking at acquisitions.”
While the company has a strong presence in its home market of Toronto, deals like the AdQ Media purchase are designed to transform it into a truly national player, said Cieslok. “There’s really not a lot of people that can beat us with the product we have in downtown Toronto, but in order for us to become a national player we need to fill in these gaps,” he said.
Cieslok is on-pace for 30% revenue growth this year, with plans to add 13 digital faces across the country. It recently erected a 10 x 30-foot digital board along Vancouver Island’s Patricia Bay (Pat Bay) Highway, the only link to the Tsawwassen Ferry Terminal that brings passengers to and from the mainland. The board has a daily circulation of 19,225 per day.
Its aggressive growth targets are stymied by both a dearth of new locations and stringent municipal bylaws regarding digital signs. “If we were in the 10 x 20-foot business [the standard size of a static billboard] it would be a lot easier,” said Cieslok. “Because we’re in the spectacular billboard business, it becomes a challenge. But when we do get the job done, the value of these boards to our customers is much greater than a board of a lesser size.”
AdQ Media is Cieslok’s second major purchase since it was established in September 2013. Last year, it added both digital and static inventory in Toronto and Vancouver with the purchase of Clarity Outdoor Media.
The company had 70% occupancy in February, a typically slow month for the out-of-home industry. Certain premium locations, such as Toronto’s Dundas Square, are sold out months in advance, he said.
“I don’t believe that 100% sellout across all inventory is possible; if anybody tells you that I think they’re fibbing a little bit,” said Cieslok. “But we do the best we can to get the highest occupancy possible.”
