• by Erik Sass  @eriksass1, December 22, 2009

The out-of-home industry has been ripe for consolidation for years, according to some industry observers, and Tuesday brought another step in that direction with news of a tie-up between MPG's Chrysalis and Posterscope, owned by Aegis Media.

The strategic partnership, which becomes effective in January, combines their capabilities in planning and buying out-of-home campaigns, specifically leveraging veteran Posterscope's scale and newcomer Chrysalis' strategic planning strength. Combined billings surpass $300 million; Posterscope is responsible for most of that total, per Adweek.

The teaming arrangement brings with it some personnel changes at both companies. Most notably, Chrysalis President Connie Garrido is replacing Posterscope President Todd Hansen in the leadership role at the larger company, where she will become CEO; Hansen is leaving the company.

Some of Garrido's duties at Chrysalis will fall to Senior Vice President Lauren Barbara. Chrysalis Managing Director Ray Rotolo is also assuming the role of executive vice president at Posterscope.

The two companies, both owned by corporate parents based in Europe, have already established a working relationship in the U.S. and were indeed aligned from the get-go. The first collaboration came just days after Chrysalis launched.

At a MediaPost digital out-of-home conference earlier this year, executives from Posterscope and Chrysalis gave details of an experimental pitch process they organized for client Schering-Plough in the digital out-of-home space. In essence, they arranged for a "mini-upfront" or "shoot-out" involving simultaneous presentations by 26 rival OOH companies.

The next few years may see more strategic partnerships in the media industry, reflecting greater conservative financial attitudes. With credit markets still moving at a glacial pace, strategic partnerships are an effective way to achieve scale and combine complementary strengths without any cash changing hands. Such arrangements obviate the need for financing in a challenging market.