The economic downturn and credit crunch do not seem to have prevented the digital out-of-home advertising industry from raising capital.
This week, Zoom Media and Marketing announced it has raised more money with a new round of debt financing from Orix Venture Finance. Previous rounds of funding came from Zoom's co-owners, the de Gaspé Beaubien family and ABS Capital Partners.
Zoom said it will use the funds to expand its existing media and advertising products and services, particularly its digital advertising networks. Henry O'Connor, managing director of ORIX Venture Finance, explained the rationale behind the deal.
"As the demand for new marketing methods is exploding, Zoom is poised to capitalize on emerging trends in the digital place-based industry with a quality product that delivers targeted solutions to the prized 18-34 demographic," said O'Connor.
The company owns static and digital out-of-home networks reaching restaurants, family entertainment centers, health clubs, bowling allies and other venues. Overall, its various networks cover a total of over 10,000 venues, including 25,000 digital displays and 55,000 static billboard spots, which Zoom says reach 100 million viewers per month.
Starting from a small base, digital OOH advertising remains one of the strongest media categories in terms of percentage year-over-year growth, with continual increases despite the economic downturn.
PQ Media predicts that total ad spending on DO networks will jump from $2.47 billion in 2009 to $3.8 billion in 2014, with a compound annual growth rate of 9.4%.