• by Erik Sass  @eriksass1, September 22, 2009

This week brought even more activity in the digital out-of-home video space, with the acquisition of RippleTV by TargetCast Networks. The deal brings Ripple's network of digital displays in local retail establishments together with TargetCast's place-based networks, which reach diners in casual restaurants, including Applebee's and Chili's.

Terms of the acquisition were not disclosed.

Altogether, the combined assets of TargetCast and RippleTV give advertisers access to 3,425 screens in 1,400 locations, according to the companies. RippleTV's displays in casual dining locations and nearby retail outlets will be rebranded by TargetCast, which will also integrate them into its own network with hardware and software modifications.

Ripple's former CEO, John McMenamin, is joining TargetCast as chief revenue officer.

Industry observers have long been predicting a wave of consolidation in the digital out-of-home space, which they say will only be accelerated by the recession and global credit crunch. Patrick Quinn, CEO of research outfit PQ Media, had predicted a shakeout in 2008-2009, with smaller or over-leveraged DO companies getting swallowed by larger, better-funded peers, followed by a surge in the medium's revenues in 2010 and beyond.

Consolidation can assume other shapes in addition to outright acquisitions.

For example, last week, TCN announced a partnership with Premier Retail Networks, which operates a number of in-store video networks serving "big box" retailers like Wal-Mart and Costco, giving the latter responsibility for ad sales in some key categories.

Praising PRN's sales staff as "the most experienced sales organization in the digital out-of-home space," TargetCast Networks president and CEO Jerry Hall said TCN will benefit from "PRN's deep relationships with clients and agencies."

For its part, PRN can now offer advertising on TCN as a "strategic complement to our existing retailers," according to PRN chief of sales D. Scott Karnedy.

The partnership between PRN and TCN Media is part of a growing trend toward consolidation of ad sales between independent DO networks, allowing newer, smaller, or less sales-oriented networks to leverage the experience of veteran sales forces of their older, larger and more established counterparts. In return, the latter can bundle their partners' ad sales with their own, offering advertisers greater reach, frequency and cost efficiency. In some cases, they can also expand their own content distribution.