T-Mobile announces its next acquisition which will transform an industry using digital screens
T-Mobile today announced the acquisition of Vistar Media. The purchase will cost T-Mobile $600 million although the price might be adjusted at the closing. Vistar provides technology for digital-out-of-home (DOOH) advertisements which are digital versions of traditional outdoor ad media. For example, DOOH ads might be viewed on a screen instead of a traditional billboard which will allow multiple ads to appear at a site. These ads might also feature animation to grab the attention of viewers. DOOH ads have the ability to reach millions of viewers every day.
The T-Mobile Advertising Solutions unit will acquire Vistar's intelligent marketplace that helps advertisers buy, sell, and manage their media campaigns that flash across 1.1 million digital signs worldwide owned by 370 OOH firms. These signs show ads from over 3,000 brand partner advertisers.
The purchase by T-Mobile of Vistar will combine the latter's ad-tech platform with T-Mobile's unique data derived from its customers. In its press release, T-Mobile said it will "help marketers and advertisers reach consumers with more addressable and measurable solutions, delivering greater efficiency and ROI, while enhancing the consumer experience with more meaningful and engaging content."According to a forecast from eMarketer, DOOH advertising will account for one-third of the $10 billion out-of-home ad spending in the U.S. during 2025.
T-Mobile's advertising unit already offers DOOH advertising. | Image credit-T-Mobile
T-Mobile notes that digital screens still represent a small percentage of the OOH advertising market meaning that there is huge upside potential and that the wireless carrier is making this purchase at just the right time.
"T-Mobile is always envisioning new ways to deliver for consumers and we see a tremendous opportunity to provide more relevant and personalized advertising. Combining T-Mobile’s customer-centric approach and its expertise as one of the nation's most scaled marketers, with Vistar’s leading out-of-home technology means advertisers can easily place their ads where they know their audience will be, improving every step of the customer journey. Together with Vistar, T-Mobile will deliver advertising solutions built by marketers, for marketers."-JP Colaco, SVP & Chief T-Ads Officer, T-Mobile
The transaction is expected to close during the first quarter of 2025 although it still awaits regulatory approval. Michael Provenzano, CEO & Co-Founder of Vistar Media, said in a statement "We are excited to join T-Mobile, a brand that truly understands the power and potential of out-of-home advertising."
T-Mobile already offers DOOH advertising as part of its Advertising Solutions unit. T-Mobile says that it takes only three steps for advertisers to get involved. First, advertisers use the carrier's first-party data to find the audience they are aiming to reach. Two, the first-party data from T-Mobile is layered with third-party location data to grasp the movement patterns of this particular audience. Lastly, activate the appropriate digital screens based on the data collected over a seven-day period.
T-Mobile says that its premium DOOH screens can be found in premium locations such as:
- Transit
- Airports
- Restaurants
- Gas stations
- Apartments
- Grocery
- Offices
- C-Stores
- Rideshare
- Cinema
And no, DOOH has nothing to do with Homer Simpson.
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