Information on the target
National CineMedia has reached an agreement to acquire Captivate, a prominent video-advertising network that operates digital screens in the elevators and lobbies of both office and residential buildings. The acquisition is valued at an enterprise value of $275 million. Captivate's network comprises over 26,000 digital video screens installed in more than 11,000 buildings across 170 designated market areas in the United States and Canada. The screens display short segments of news, weather, and other programming interspersed with advertisements, targeting individuals during their wait or ride in elevators.
Founded in 1997 by Mike DiFranza, Captivate was initially part of Gannett before being carved out by Generation Partners in 2013. Under Generation's ownership, Captivate expanded significantly, particularly in high-grade office buildings, which now account for approximately 90% of its advertising revenue. In 2023, the company broadened its reach by extending its network into residential buildings, increasing its audience base and enhancing its advertising capabilities.
Industry overview in the target’s specific country
The Advertising & Marketing (NEC) industry in the United States has experienced significant transformation, particularly with the rise of digital out-of-home (DOOH) advertising. This sector has been rapidly evolving as advertisers shift their focus from traditional static billboards to dynamic, networked digital displays. The U.S. market for digital out-of-home advertising was valued at approximately $6.7 billion in 2025 and is projected to grow at an annual rate of 9.4%, reaching around $15.4 billion by 2034, according to IMARC Group.
One of the key drivers of growth in the Advertising & Marketing (NEC) industry is the increasing adoption of programmatic buying. This innovative approach allows advertisers to purchase digital screen space in real time, similar to online ad purchases, thereby enhancing efficiency and targeting capabilities. Additionally, the integration of data analytics that connects screen locations with audience demographics has made DOOH advertising more appealing to advertisers seeking to maximize their reach and impact.
Place-based networks, particularly those situated in high-dwell venues such as offices and elevators, are gaining traction among advertisers. These environments provide unique opportunities to engage audiences during moments of downtime, making them ideal for targeted advertising. As consumer behavior continues to evolve, the demand for engaging and relevant advertising experiences is expected to drive further growth in this sector.
Furthermore, the competitive landscape of the Advertising & Marketing (NEC) industry is characterized by a mix of established players and emerging startups, all vying for market share in…