Montreal-based Newad plans to invest $10 million in its digital out-of-home network over the next 15 months, doubling the number of screens to 4,000 by the end of 2016.
The company hopes to have 2,000 screens installed in the Vancouver, Edmonton, Calgary, Toronto, Montreal and Halifax markets by the end of this year, with plans to add an additional 2,000 faces next year.
While Newad is building on a small digital presence in Ottawa, and adding new digital inventory in Halifax and Moncton, the primary focus of the build-out is on the fast-growing Alberta market.
Brian Wyatt, executive vice-president, client services for Newad, said that clients are increasingly seeking inventory in major Alberta markets like Calgary and Edmonton, as well as smaller markets like Grand Prairie and Fort McMurray.
“Alberta is leading [Canada’s] economic growth, and we’re just following that path and making sure we’re increasing our inventory,” he said. “Alberta is being asked for a lot [by clients], so we’re putting a real emphasis on that market.”
Digital has been identified as the primary growth driver for the out-of-home sector in the coming decade, with proponents lauding its flexibility and ability to deliver contextually relevant ads.
But while day-part advertising has long been one of digital out-of-home’s core promises, Wyatt said the practice has really only started to come into vogue among advertisers in the past 12 to 18 months.
“As the boards are becoming more technologically advanced, and capabilities are increasing, you’re going to see more and more of that,” he said. “We’re not only talking to the planning and buying agencies, but also the creative agencies – letting them know about the capabilities as well.”
Newad’s fourth generation boards feature Bluetooth and wi-fi capabilities, while integrated speakers add sound to advertiser creative. Newad currently delivers more than two million advertising impressions each week.
The company said that the 22-inch boards’ vertical format enables for easier installation in narrow spaces and makes them more conducive to the integration of “complementary content” to existing creative. If a movie trailer is running in the middle of the screen, for example, clients can surround it with other creative assets or even an interactive map showing the location of the nearest theatre.
“Every week the loop it’s looking better and better,” said Wyatt. “Creatives are starting to use it more effectively.”
Newad said that the $10 million investment is earmarked for a combination of “technological development,” custom manufacturing and installation. Newad’s digital out-of-home network encompasses restaurants, bars, schools, sports and fitness centres. Its primary audience is adults between the ages of 19 and 49.
In April, the company entered into a new agreement with Cara that will see its boards featured in approximately 200 of the restaurant giant’s Kelsey’s, Milestones and Montana’s casual-dining chains.
Wyatt predicted that digital out-of-home would represent between 30-40% of its out-of-home revenues within the next year.
