Destination Media, the parent of Gas Station TV, and LG Electronics, a leader in digital signage displays, announced plans for a long-term strategic technology and marketing alliance.
For advertisers, the collaboration will leverage LG's screen technology and Destination Media's proven non-traditional marketing strategies. Offering media networks one of the industry's most comprehensive selections of flat- panel displays and related distribution technology, LG Electronics will be the exclusive screen provider for a number of Destination Media's extensive out- of-home marketing networks. LG also plans to advertise on various Destination Media digital out-of-home TV Networks.
For advertisers, the collaboration will leverage LG's screen technology and Destination Media's proven non-traditional marketing strategies. Offering media networks one of the industry's most comprehensive selections of flat- panel displays and related distribution technology, LG Electronics will be the exclusive screen provider for a number of Destination Media's extensive out- of-home marketing networks. LG also plans to advertise on various Destination Media digital out-of-home TV Networks.
Our take:
Partnership agreements between screen manufacturers and network owners are nothing new, and we bet it takes the following form: Destination Media agrees to use so many LG screens in the next 2 years, and will give LG some amount of screen advertising time on all the networks, and in exchange, LG will give DM the screens at a reduced cost, or possibly even free depending on how much they feel the advertising time is worth.
We're uncertain as to how many people will drive up to the pump in their SUVs, plunk down $100+ for a tank of gas, glance over at the screen and say "gee, I could use an HDTV... and when I finally make it over to BestBuy or Costco or wherever, I'll have to remember to look at the LG screens because of this ad!" The power of digital signage comes from its location specificity -- putting ads next to the products themselves (or at least, putting them really close by). Granted, nobody here at WireSpring is an expert in brand-building, so perhaps LG's approach of simply putting their name everywhere in hopes of fostering more brand recognition (e.g. to be more top-of-mind than rival Samsung) will be effective. Still, it doesn't seem to play to the technology's strengths.
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