By: Adnan Arnautlija
World’s most popular streaming platform, Netflix, has offered more than $300 million to buy a billboard company in Los Angeles, according to Reuters. If the deal goes through, and Netflix acquires the Regency Outdoor Advertising, it would be the company’s biggest acquisition to date.
Although you don’t hear every day that one of the biggest players in digital world is interested in buying a traditional channel, the move makes a lot of sense for Netflix, as the company owns billboards across LA, including on the famous sunset strip, which would give a brand new opportunities to solidify its reputation in the entertainment capital.
Also, Netflix has had some stellar OOH campaigns so far, and this move could help them save money in the long-term. OOH is also one of the rare (if not only) channel that today can reach all target groups, as it is immune to skips, ad-blocks, channel changes and so on.
On the other hand, Netflix is already very active in outdoor advertising across the world, and especially so in Los Angeles, where it strongly promotes its original programs. According to reports, this year the brand intends to increase its marketing spend for its originals to $2 billion, in efforts to keep competitors such as Amazon Prime, Hulu, cable TV, but also Facebook and Twitter, at bay.
