Woolworths has revealed it will purchase retail media business Shopper Media Group in a deal costing about $150m.
Cartology, Woolworths’ retail digital business, will acquire the shopping network, which includes 2000 digital advertising screens dotted throughout 400 shopping centres across the country.
The deal, which is subject to clearance by the competition regulator, the Australian Competition and Consumer Commission, is expected to be completed by the end of this year.
Cartology managing director Mike Tyquin said the business – which recently turned three years old – would help enable its “aspiration to become the media partner of choice for brands and retailers”.
“It increases our customer reach and allows us to provide additional news solutions, end to end from a customer journey perspective … and it also allows us to extend our off-network proposition as well as to scale our new proposition to categories beyond FMCG (fast-moving consumer goods) and everyday needs.”
Cartology has more than 200 employees across Australia and New Zealand and provides media solutions to connect brands with customers.
Its digital advertising network is spread across 1500 screens.
Mr Tyquin said the acquisition of Shopper would enable advertising to be extended well beyond FMCG to help bolster reach for its clients.
“The Shopper business is a great business, it’s not just screens, it’s people, it’s capability, it’s platform, similarly that’s our business,” he said. “Both businesses are growing very strongly so we like the idea of being able to harness and combine both businesses in this new proposition.”
Woolworths chief executive Brad Banducci said the acquisition was an “important part of the evolution of Woolworths Group”.
“We’re excited about the opportunity to bring together the complementary capabilities of our retail media business, Cartology, with Shopper’s expertise in out of home media,” he said in an issued statement.
“Shopper has invested heavily in technology, helping the business pave the way for innovation in retail out of home media.”
Shopper focuses on out-of-home advertising screens in shopping centres in a bid to help businesses connect with customers at the right time, and on its website it says it can drive a 28 per cent increase in sales. It also says it has the ability to tailor specific campaigns to certain audiences depending on the location, time of day and weather factors.
Extracted from The Australian
