Sina.com + Focus Media: Paving the way for Google to run over Out of home Media
January 24, 2009
For some time, it has been the general sentiment here at Just Out-Of-Home that sooner or later, online media and out of home media would some how eventually converge. This is not some Nostradamus-esque prediction either; we know a lot of the creatives, especially designed for digital signage, are similar (if not the same) formats as those used in the online advertising biz. Another is the fact that most digital signage & networks are indeed connected by the Web (at least in the simple sense), and there are also web-based content management programs popping up like crazy these days. The connection between online and out of home may be a destiny as with this combination, advertisers will be able to hit consumers EVERYWHERE!!; at and out of their homes. Indeed, a potentially lethal and undeniable media mix in the near future. Lastly, no media has shown the ability to collect, record, and report accurate data more than online media, and out of home is still in its infancy in terms of research / data standardization, and perhaps online companies can bring in a fresh perspective and speed up the process.
Well, this concept is actually coming to fruition as Focus Media (a GIANT in the Chinese out of home company) released the following statement:
Focus Media Holding Limited (Nasdaq: FMCN), China’s leading multi-platform digital media company, today announced it has entered into a definitive agreement with SINA Corporation (Nasdaq GS: SINA), a leading online media company and value-added information service provider for China and for global Chinese communities, that SINA will acquire substantially all of the assets of Focus Media’s digital out-of-home advertising networks, including LCD display network, poster frame network and in-store network.
And here is the “small snow ball”… So, do we think the Web demi-god, Google, will stand idly by while their Chinese counter-part makes such “Checkmate in 3″ moves? Well, here’s the answer
If you clicked on the link, you will see a one of Google’s Patent Application. Yeah, it’s long and perhaps boring; but in sum, Google seems to be looking into making the same moves as Sina did recently. AdWords-like system + Digital Sigange? If this is the case, this may have huge implications and effects on the out of home industry; implications and effects that will have to be thought about very deeply. What we do know is, where ever Google has gone, they have had a good market share (maybe not the Gphone…), and most of the times; Just simply Dominated! With the Google’s “think tank” and their bankroll; one has to wonder what the out of home media landscape will look like post-Google; mergers, buys, and a graveyard of companies unable to compete are all certainly possibilities. Great for the companies / stakeholders getting bought out, Scary for the others. We may not have to wonder for too much longer… Google still beat analyst earnings expectations recently, while the current reality of the out of home space is that it has also gotten hammered along with everything else. We saw 2009 as out of home’s year of consolidation, in companies and methodologies; But add Google into the mix?
The “small snowball” that turned into an Avalanche…
Entry Filed under: Billboards, Digital Signage Software & Solutions, Future of Out Of Home, Research & Metrics. Tags: acquisitions, Focus Media, Google, Google Patent, mergers, Online and digital sigange, Online and Out of home, Sina.com.
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