Interpublic Group on Monday announced its investment in ADstruc, a technology platform that automates some of the out-of-home media planning and buying process. Terms of the deal were not disclosed, but it is considered a "minority investment," meaning that ADstruc will still operate as its own company.
In addition to investing in the company, IPG agencies will have access to ADstruc's platform. Rapport, an IPG agency that focuses on out-of-home media, is singled out as the agency that will work most closely with ADstruc.
ADstruc consolidates OOH (out-of-home) inventory -- including digital OOH -- from major outdoor providers and "hundreds" of independent, regional owners, stated Chad Stoller, managing partner of IPG Media Labs. The company can then easily track and buy the inventory it has grouped together.
Michael Roth, chairman and CEO of IPG, stated that the company invested in ADstruc because it believes outdoor advertising is transitioning “to a more digital channel." Magna Global, IPG’s research arm, estimates the OOH market will grow by 4.8% in the U.S., up to $7.3 billion in 2014.