Gas Station TV’s Digital Place-based Advertising Network Reaches More Than 50 Million Viewers Per Month Across 42 States
DETROIT, MI — Consolidation in the digital place-based (DPb) advertising space has accelerated over the last several months. Last January, Outcast Media, one of the largest digital-place-based advertising networks at gas pumps was snapped up by Gilbarco Veeder-Root combining Outcast Media’s network with Gilbarco’s c-store-based Applause TV. Then in April came news that Captivate Network would acquire the Office Media Network, creating one of North America’s largest in-office professional media networks. Today comes news that Rockbridge Growth Equity, LLC, a Detroit-based private equity firm, has signed a purchase agreement to acquire Gas Station TV (GSTV), one of the fastest-growing place-based advertising networks at gas pumps—and a direct competitor to Outcast Media.
Founded in 2006 and located in Birmingham, Michigan, GSTV is one of the largest place-based video advertising networks in the United States reaching more than 50 million viewers at gas pumps each month. GSTV’s viewership has continued to grow and solidify video advertising at the pump as an exemplary platform for brands to reach on-the-go consumers. GSTV’s place-based screens engage and influence consumers with exclusive content from ESPN, CNN’s Headline News and Buzz Today, Bloomberg TV, and AccuWeather at fuel retailers across the country.
Rockbridge Growth Equity is leading the transaction. Other investors include Falcon Investments and Michigan Growth Capital Partners, co-managed by Grosvenor Capital Management and Beringea. The deal is expected to close in the coming weeks pending regulatory approval. Barclays PLC served as the exclusive financial advisor to GSTV. RBS Citizens arranged the senior debt facilities in partnership with First Merit and Flagstar Bank.
Rockbridge was founded in 2007 by partners Brian Hermelin, Kevin Prokop and Dan Gilbert, who is also founder and chairman of Rock Ventures LLC and Quicken Loans Inc. The firm invests in companies that specialize in financial and technology services, as well as digital media and consumer-direct marketing.
“Investing in an industry-leading and growing company like GSTV is a natural fit for Rockbridge,” said Prokop, who also serves as managing director. “GSTV’s management team have proven video at the pump to be a successful media growth category, and GSTV has emerged as the clear leader in the space.”
GSTV has grown its gas station network from a five-station pilot in Dallas to more than 2,600 stations in 42 states. The company has increased its revenues 35 percent annually since 2009. In addition, GSTV has tripled its advertiser base and counts numerous Fortune 500 companies in the automotive, retail, consumer packaged goods, and personal finance industries among its clients. The partnership will leverage the Rock Ventures Family of Companies’ expertise in technology, marketing services and digital media to further accelerate growth.
“Partnering with Rockbridge empowers us to build upon our leadership position in the industry and bring a GSTV screen to every community in the country,” said David Leider, GSTV CEO. “Together with Rockbridge we’ll continue to drive strong return on investment for our advertisers and gas station retailers, while providing an exceptional content experience for our viewers.” David Leider leads GSTV along with the management team of Stephen Kuehn, CFO and COO, and Mo Alcaptan, Executive Vice President.
“We were happy to help support Rockbridge Growth Equity in their acquisition of Gas Station TV. The transaction represents an important milestone for another rapidly growing Michigan firm,” said Beringea senior managing director and co-founder Charles Rothstein. “With its expanding network of locations and advertisers, GSTV presents an exciting investment opportunity.”
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Traditional methods of advertising have become less effective as consumers spend less time in places where marketers have traditionally had an advantage in reaching them. Consumer attention has fragmented across multiple channels as media options and device platforms increasingly diversify. Finding effective ways to deliver branded messages in today’s complex media environment is one of the biggest challenges facing advertisers.
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