Digital Out of Home (DOOH) media spending is growing rapidly and is estimated to hit approximately $4.5 billion USD by 2013. B.C.-based media company RTOWN Communications is poised to take advantage of that tremendous growth, announcing a new strategic and equity partnership with Palmer Rogers Encore Ventures Inc.
Palmer Rogers Encore is a joint venture between advertising executive Frank Palmer and financial executive Mike Rogers. Under the terms of the strategic partnership, Palmer Rogers Encore will provide RTOWN with business strategy support and financial management expertise as the company implements its aggressive growth strategy over the next number of years.
"Digital advertising continues to build momentum as media planners shift money away from traditional television towards a more targeted approach to advertising," said Tom Horler, President of RTOWN Communications. "Working with Palmer Rogers Encore, we will be in a better position to take advantage of this trend as we implement our aggressive growth plans."
Over the past 10 years, RTOWN's network has grown substantially based on its proven franchise model. The company currently operates in 12 markets across Canada and the Caribbean registering current reach of over 4.5 million impressions a week. With over a 1,000 market potential the company has an addressable market size of over $100 million dollars.
According to a recent survey, more than 86 per cent of media planners said that they intend to include digital out- of-home in their media plans in 2012, which is up from 65 per cent who said they had included the medium in their plans in 2010.
Final figures for 2010 are just being completed, but demonstrate that DOOH spending is predicted to reach $3.08 billion, an 18 per cent year-over-year increase. Experts project the growth to continue citing estimates of $3.56 billion in 2011 (15.5 per cent YOY), $4.05 billion in 2012 (13.8 per cent YOY) and approximately a 12 per cent YOY increase in 2013.
"Media buyers and advertisers are hungry for digital out-of-home services because it provides consumers with information that fits with their interests so they'll tune in, watch and listen," said advertising executive Frank Palmer of Palmer Rogers Encore Ventures Inc. "RTOWN has strong fundamentals and its product is one of the best in the industry, which is why we're confident that the company will grow so quickly and successfully."
RTOWN's sales have doubled between 2006 and 2010 with the recent strategic acquisitions of Around Town Media and Onext Media Corporation. The company's long-term goal is to be the dominant player and build a global company that provides a technology intensive service through a combination of organic growth, continued acquisition and merger.
About RTOWN Communications
RTOWN Communications is a Canadian multi-media digital broadcast network that specializes in delivering advertising through a menu of media platforms that get noticed, inform audiences, and consequently influence actions. RTOWN's products deliver advertisers' messages through a variety cutting edge, leading technology platforms, including television, digital signage, web, mobile marketing networks and in-theatre advertising.
About Palmer Rogers Encore
Palmer Rogers Encore is the brainchild of advertising and investment executives Frank Palmer and Mike Rogers. The company invests in emerging and future leader ventures in communication, Internet software and any unique business venture that is directed to making a business difference.