While there have been some mergers and acquisitions in the digital out-of-home space, another kind of consolidation is taking place in the form of
advertising sales representation agreements. Smaller networks hand over responsibility for ad sales to established players -- which can offer advertisers greater reach and frequency, as well as access
to new audiences.
In the latest such deal, Digital Display Networks, which operates 7-Eleven TV, has signed a multiyear contract with Premier Retail Networks, making the latter the exclusive ad sales representative for 7-Eleven TV, effective immediately. The deal covers 7-Eleven’s installed network reaching around 4,400 stores nationwide, which reach a monthly audience of around 100 million, according to DDN.
7-Eleven TV programming is targeted by demographics, locations and dayparts, with content including national and local weather, news and entertainment. It runs up to 20 ads per hour in 7- to-15-second spots, promoting in-store and out-of-store brands.
The deal will expand PRN’s footprint by 50%, from 200 million viewers per month to 300 million. It’s a natural fit, given PRN’s established presence in retail DOOH, built on its own network in national big-box retailers and supermarkets, including Walmart, Target, Best Buy, Costco and Albertson’s.
The deal apparently replaces the exclusive ad sales agreement DDN struck with ABC Regional Sports and Entertainment Sales, a division of ABC national television sales, in April of last year. Nor is it PRN’s first ad sales rep agreement. Back in 2009, PRN assumed ad sales responsibilities for IndoorDirect, which operates a digital video network reaching 1,077 quick-service and family-dining restaurants.
DDN is continuing to roll out 7-Eleven TV to new locations, with an eventual target of 7,000 venues. The rollout appears to have suffered from some delays, as the number of venues with 7-Eleven TV was supposed to reach 6,200 by the end of the second quarter of this year. To date, they are about 1,800 venues short.