Canadian Tire advances on "multi-million dollar" digital deal with TSN
Published: 15:03 26 May 2014 EDT
Canadian Tire Corp. (TSE:CTC.A), the country's largest sporting goods retailer, rose in midday trading after saying it has struck a deal with TSN to produce branded content for the Toronto-based retailer.
Canadian Tire gained 1.1 percent to C$104.54 at 2:39 p.m. in Toronto, extending gains over the past 12 months to 25 percent.
The deal includes traditional advertising but will focus on using TSN’s broadcast and web properties to spread Canadian Tire’s marketing message through editorial content, the companies said in a statement today.
TSN-produced content will also appear on the YouTube and social media feeds of the various Canadian Tire retailers, as well as on in-store digital monitors.
Earlier this month, Canadian Tire said it would divert much of the cash it spends on paper flyers into advertising on Facebook.
"Our customers are rapidly changing their expectation of where and how we interact with them," Canadian Tire senior vice president Duncan Fulton said in the statement. "The content we share on Facebook has to be different than Twitter or YouTube or TSN.ca or what you see on our digital screens in our stores."
Financial terms of the transaction weren’t specified, but the statement calls it a 'multi-million dollar" deal and says Canadian Tire will finance it via "an optimization and reallocation of existing CTC marketing and advertising budgets."
