Whether a consumer is on their way to the airport or coming home from a night out, T-Mobile wants to be the bridge for brands to reach them. 

The mobile telecom company officially closed a deal to acquire Octopus Interactive, a national network of rideshare screens that deliver games, prizes, video and "infotainment." Founded in 2018, Octopus operates in Uber and Lyft vehicles and has clients including Audible, Fox Entertainment and streaming company Philo.

The acquisition builds on a two-year commercial partnership and will integrate Octopus’ full staff into T-Mobile’s marketing solutions division. The devices of rideshare drivers on Octopus’ network will also now be powered by T-Mobile.

“With this move, we’re expanding our toolkit for marketers, meeting the needs of advertisers and empowering brands to better connect with consumers, beyond linear and traditional digital channels,” Mike Peralta, VP and general manager of T-Mobile’s marketing solutions division, said in a statement. 

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Adding video and digital out-of-home touchpoints could complement the scale the wireless carrier has in the mobile ad world, Peralta told Ad Age. T-Mobile has been busy building out its ad tech offerings through its trove of mobile data, which continues to grow as the company absorbs Sprint customers in the wake of its 2020 merger.

Factoring into its decision to acquire Octopus is an apparent comeback in out-of-home advertising, which, in the third quarter of 2021, saw a year-on-year increase in ad revenue of 38%, per a report by the Out of Home Association of America. Digital-out-of-home (DOOH) specifically saw a 56% rise over the same period.

As for the continued threat of COVID, Peralta is comforted by the significant boost in rideshare app bookings over the past year, and remains bullish on the impact of DOOH for people who will still need to get out and go places.

T-Mobile is hoping to entice brands by mixing interactive ads with Octopus’ range of content. The network has seen engagement rates between 2.5% and 12%, with the higher levels typically associated with more gamelike formats. In addition to branded games, Octopus also allows for video ads, surveys, and QR codes.

But while interactive content is an increasingly popular touchpoint for marketers, T-Mobile sees in rideshare screens a greater opportunity for brands to advertise in front of captive audiences, especially as rideshare apps continue to see record numbers in usage. 

“The reason we bought Octopus is not because they're a content company, but because they give us additional distribution in a very unique way,” Peralta said.

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