New York, NY – Interpublic Group (NYSE: IPG) announced today that the company has made a strategic investment in tech platform ADstruc, which specializes in automating the process of planning and buying outdoor advertising. The holding company’s IPG Media Lab initiated the relationship with ADstruc and has overseen its deployment to IPG’s global Out-of-Home (OOH) specialist agency, Rapport. Terms of the minority investment by IPG in the venture-backed ADstruc were not disclosed.
ADstruc is a unique platform that consolidates OOH inventory for major outdoor providers and independent owners and creates a comprehensive online workflow for OOH media. The partnership is expected to modernize and simplify the OOH planning and buying process for IPG agencies and their clients.
Outdoor advertising includes media such as billboards, transit and street furniture, as well as place-based networks. Interpublic advertising forecasting unit MAGNA GLOBAL estimates that the OOH market in the U.S. will grow by 4.8% and total $7.3 billion in 2014.
Michael Roth, Chairman and CEO of Interpublic, commented, “Outdoor advertising’s transition to a more digital channel has made it one of the fastest growing media disciplines and has put Rapport Worldwide at the forefront of how agencies and clients can deliver innovative messaging on the channel. Working with ADstruc, we expect Rapport’s leadership position in the industry to continue and strengthen.” Roth continued, “The IPG Media Lab is unique in its ability to identify key partners that can jumpstart greater efficiency and accountability in the ad industry. They know all sides of the business and have a successful track record when it comes to honing in on companies that can move the needle for our clients’ businesses. This strategic partnership with ADstruc will be equally effective.”
Chad Stoller, Managing Partner, IPG Media Lab commented, “ADstruc has managed to do what no player in the ad space has done before. It has obtained the buy-in of all the major operators as well as hundreds of smaller regional owners of outdoor, in order to seamlessly consolidate, track and buy outdoor media.”
In addition to the IPG investment, Rapport U.S. has entered into a strategic agreement with ADstruc. The agreement includes the implementation of a new model that will shift the purchase of Rapport’s OOH buys to a more automated system, in keeping with IPG Mediabrands’ commitment to automate half of its media buys by 2016.
Mike Cooper, President of Rapport U.S., stated, “Outdoor advertising can be an efficient and accurate channel for clients. However, buying and planning OOH can also be a cumbersome, disjointed process. This deal streamlines the process and puts Rapport where we need to be. It frees up our account teams to think and plan more creatively, focusing on service and results for our clients.”
The ADstruc platform connects each component of Rapport’s planning and buying through its third-party integrations, including Mediaocean and Telmar. It will enable Rapport’s OOH planners to quickly and easily plan and buy OOH audiences in line with other media, making their campaigns more measurable and accountable.
John Laramie, the CEO and Founder of ADstruc added, “This long-term commitment from one of the industry’s most important players in advertising is a big step for the OOH industry. It sets the standard for how OOH media will be planned and bought going forward, and brings efficiencies to both sides of the market. We are excited to work with IPG and Rapport and look forward to a long-term successful partnership.”
About Interpublic
Interpublic is one of the world’s leading organizations of advertising agencies and marketing services companies. Major global brands include BPN, Draftfcb, FutureBrand, GolinHarris International, Huge, Initiative, Jack Morton Worldwide, Lowe and Partners, MAGNA GLOBAL, McCann, Momentum, MRM, Octagon, R/GA, UM and Weber Shandwick. Leading domestic brands include Campbell Mithun, Carmichael Lynch, Deutsch, Gotham Inc., Hill Holliday, ID Media, Lowe Campbell Ewald, Mullen and The Martin Agency.
About IPG Mediabrands
We were founded by Interpublic Group (NYSE: IPG) in 2007 to manage all of its global media related assets. Today that means we manage and invest $37 billion in global media on the behalf of our clients, employ over 8,500 diverse and daring marketing communication specialists worldwide and operate our company businesses in more than 130 countries.
A proven entity in helping clients maximize business results through integrated, intelligence-driven marketing strategies, IPG Mediabrands is committed to driving automated buying, pay-for-performance and digital innovation solutions through its network of media agencies including UM, Initiative, BPN, Orion Holdings, and ID Media. Its roster of specialty service agencies including MAGNA GLOBAL, Mediabrands Audience Platform, Mediabrands Publishing, IPG Media Lab, Ensemble, and Identity offer technologies and industry moving partnerships that are recognized for delivering unprecedented bottom line results for clients.
About IPG Media Lab
The IPG Media Lab is equal parts think tank, real-world proving ground, and change enabler. We provide agencies and media operators with the power to harness emerging communication opportunities by offering expertise, resources and consulting services tailored to drive quantifiable outcomes, learnings and strategies. The IPG Media Lab is part of IPG Mediabrands, the media innovation and investment arm of IPG. For more information, please visit www.ipglab.com or follow @ipglab.
This news is courtesy of www.interpublic.com
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