Newad has welcomed back one of its founding partners and grown its advertising inventory in Ontario with the acquisition of Toronto’s Media One. Terms of the deal, which was finalized approximately two weeks ago, were not disclosed.
Media One is a resto-bar advertising network specializing in large-format banners. Jean-Philippe Leduc, executive vice-president of client relations for Newad in Montreal, said the real value of the deal is in Media One’s long-term contracts with approximately 500 establishments in large and mid-sized Ontario markets, including Toronto, Ottawa, Kitchener and London. The contracts typically range from three to five years, said Leduc.
“It cannot be a more natural acquisition for us,” said Leduc. “Media One was evolving in the same type of world as Newad and [the deal] allows us to increase our footprint in Ontario.”
Leduc said the deal increases Newad’s Ontario footprint by about 40%, a sizeable increase in a key market where the company has occasionally had to turn away sales because of a lack of available inventory.
Leduc said there is still some “tweaking” to do in venues where Newad and Media One have overlapping inventory, but said it should be completed by early next year. Newad also hopes to add products such as its mini-boards, backlits and digital boards in establishments formerly operated by Media One.
As part of the takeover, Media One president Lino Ricco, who helped establish Newad and served as the company’s vice-president of sales from 1995-97, returns to the company in the position of VP and regional general manager – Central Canada. In this role, Ricco will be responsible for commercial activities and sales with Toronto advertising agencies.
Ricco has been active in both the indoor advertising and experiential marketing industries since leaving Newad, contributing to the development of companies such as Roar Media.
Acknowledging the profound negative impact the recession has had on advertising firms, Leduc said the Media One deal restores Newad’s revenues to 2008 levels.
However, he said the company is still actively looking to grow its presence in both Ontario and Canada, with a particular emphasis on digital products. Newad currently has an estimated 1,300 digital boards through its resto-bar network, and is looking to grow that number.
“Our goal is to take the top locations… and just try to put as many digital boards out there as possible,” said Leduc. “The trend in out-of-home right now is really in digital and we’re participating actively in that change.”
Newad boasts four main networks in its out-of-home business: resto-bars, health and fitness clubs, colleges and universities and a new arena network that currently features more than 100 establishments.
