Music, media and technology company Stingray Group has acquired InStore Audio Network, an in-store audio advertising network in the U.S., reaching 100 million shoppers each week in over 16,000 grocery retailers and pharmacies across the country. Total consideration for the deal is up to $59 million (Canadian dollars) subject to a specific earn out mechanism, per a news release.
With this acquisition, Montreal-based Stingray expands its retail-based digital audio advertising footprint in the U.S. and aims to reaffirm its stance as a global digital media solutions provider. InStore Audio Network generated an estimated $18.5 million (Canadian dollars) in revenues in the last year.
"This acquisition validates the trend we’re already witnessing in the market — retail audio has emerged as a top priority for advertisers,” said Brent Oakley, CEO at Vibenomics, in an email to Path to Purchase IQ. “Due to its bottom-line benefits, retail media networks are attractive channels for brands, so global companies like Stingray are naturally taking notice. With retailers seeking to earn a piece of the $100 billion annual revenue pie, we’re committed to evangelizing the benefits of audio out-of-home (AOOH) in retail media. Because of our proprietary technology and partnerships with The Trade Desk, Vistar Media and other demand side platforms (DSPs), we’re perfectly positioned to continue capitalizing on this growth and supporting grocers and convenience stores with AOOH.”
InStore Audio Network enables the monetization and delivery of highly targeted digital audio advertising at a location level via custom-curated streaming music services. Current users of InStore Audio Network’s retail media solutions include top retailers like CVS Pharmacy, Rite Aid, Albertsons Companies including Safeway, Southeastern Grocers, Ahold Delhaize, Tops Markets, Weis Market and Brookshires.
Under Stingray's ownership, InStore Audio Network will continue to broaden its existing retail media offering with a focus on verified audience measurement, digital ad serving and programmatic monetization. The addition of Stingray’s technology and digital media expertise, combined with InStore Audio Network’s track record of success, also aims to accelerate overall network expansion.
"Stingray has successfully launched the first Canadian retail-based digital audio advertising network," said Eric Boyko, president, co-founder and CEO of Stingray, in the release. "Both agencies and brands have shown strong interest in reaching and connecting with principal shoppers within retail environments through an innovative, digital-first advertising solution. We expect this acquisition to deepen our presence in the U.S. market and drive revenue within the growing retail media category."
Stingray will wholly own and operate InStore Audio Network, under the continued leadership and direction of its current management team.