Primedia has acquired a 50% shareholding in Merchint, a wholly owned subsidiary of retail media company Barrows Design and Manufacturing.
Primedia made an initial payment of R25 million, with an additional R75 million to be paid over four years, the company says. The latter payment will be based on the future performance of Merchint, it says.
Merchint develops hardware and software which delivers targeted content when consumers are about to make a purchasing decision, Primedia says.
Buying into the company will allow Primedia to leverage its existing out-of-home distribution channels, providing greater effectiveness and flexibility, says Primedia CEO William Kirsh.
Barrows co-chairman Derek Woodhouse says the synergy between Barrows`s technology suite and Primedia`s advertising reach provides Primedia`s clients with a complete advertising solution.
He says the ongoing fragmentation of TV advertising and significant shift to retail as an alternative media format provides an ideal opportunity to create a new marketing medium that uses a combination of merchandising intelligence and digital signage.
Following positive trends internationally, this new media type is enabling advertisers to effectively target consumers at the point of sale, which is where 70% of all purchasing decisions are made, Kirsh says.
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