http://promomagazine.com/news/online-ad-spending-bottoming-out-1215/
Marketing research firm eMarketer has revised its estimate for U.S. Web advertising once again, and now says spending this year will represent a 4.6% decrease over last year's online ad budget.
The agency forecasts that companies will turn out to have spent $22.4 billion on Internet-based advertising this year, primarily in the categories of search marketing, display ads and online classifieds.
Previously eMarketer also revised its online ad estimated downward in October, saying that online U.S. ad spending for the year would drop off by 2.6%. prior to that earlier revision, the company had been anticipating spending growth of 4.5% in the market.
Right now eMarketer expects U.S. spending on online advertising to increase by 5.5% in 2010. The main driver will be the rise of online video advertising, which Hallerman expects will become "the main form of brand advertising in the digital space." Spending on online video will grow at yearly rates ranging from 34% to 54% until 2014, in eMarketer's estimate, and increase from a total of 41.4 billion in 2010 to a projected $5.2 billion in 2014.
Monday, December 21, 2009
Coupons, E-mail, Self-checkout Big Winners in Digital Shopping: Study
http://promomagazine.com/retail/news/1209-digital-shopping-study/
The most successful technologies, including Internet coupons, e-mail, online ratings and reviews and self-checkout, must provide three benefits: value, help in making decisions and improved ease of shopping, the study found.
At-home technologies have the highest adoption rates among consumers since most people have access to a computer and the technologies are simple and user friendly.
Once inside stores, self-checkout is the most widely adopted technology used (71%), followed by DVD rentals (23%) and on-pack promotions that requires the consumer to go to a Web site (21%). Interestingly, interactive TV and TVs at Walmart had been used by only 6%. Handheld scanners, kiosks for swiping loyalty cards to receive personalized coupons and touch screen signage showed high interest.
Mobile technology is on the horizon to become the “next killer app,” the report said. The broad array of applications offer marketers a venue to serve up relevant information to shoppers wherever they may be.
The survey also found that consumers visit retail and brand sites for very different reasons and that if the two worked in partnership it could improve results for both. Because the retailer draws large numbers of shoppers to research and find the best prices, the brand can add value to the site by providing content to help drive traffic and loyalty.
The most successful technologies, including Internet coupons, e-mail, online ratings and reviews and self-checkout, must provide three benefits: value, help in making decisions and improved ease of shopping, the study found.
At-home technologies have the highest adoption rates among consumers since most people have access to a computer and the technologies are simple and user friendly.
Once inside stores, self-checkout is the most widely adopted technology used (71%), followed by DVD rentals (23%) and on-pack promotions that requires the consumer to go to a Web site (21%). Interestingly, interactive TV and TVs at Walmart had been used by only 6%. Handheld scanners, kiosks for swiping loyalty cards to receive personalized coupons and touch screen signage showed high interest.
Mobile technology is on the horizon to become the “next killer app,” the report said. The broad array of applications offer marketers a venue to serve up relevant information to shoppers wherever they may be.
The survey also found that consumers visit retail and brand sites for very different reasons and that if the two worked in partnership it could improve results for both. Because the retailer draws large numbers of shoppers to research and find the best prices, the brand can add value to the site by providing content to help drive traffic and loyalty.
DirectMail.com acquires Eagle Direct, expands sales division
http://www.btobonline.com/apps/pbcs.dll/article?AID=/20091209/FREE/912099998/1078/newsletter011
Integrated direct marketing company DirectMail.com has acquired Eagle Direct, a specialist in personalized multi-insert pieces.
Financial terms of the deal were not disclosed.
In the past, DirectMail.com has outsourced its own insert needs to Upper Marlboro, Md.-based Eagle Direct to manage its production overflows. DirectMail said the acquisition will increase its capacity by more than 500,000 pieces per day and boost its ability to produce multi-insert packages.
Eagle Direct owner Deborah Albro will become VP-customer service and operations with DirectMail.
Integrated direct marketing company DirectMail.com has acquired Eagle Direct, a specialist in personalized multi-insert pieces.
Financial terms of the deal were not disclosed.
In the past, DirectMail.com has outsourced its own insert needs to Upper Marlboro, Md.-based Eagle Direct to manage its production overflows. DirectMail said the acquisition will increase its capacity by more than 500,000 pieces per day and boost its ability to produce multi-insert packages.
Eagle Direct owner Deborah Albro will become VP-customer service and operations with DirectMail.
UBM acquires Virtual Press Office
http://www.btobonline.com/apps/pbcs.dll/article?AID=/20091215/MEDIABUSINESS/912159991/1078/newsletter011
United Business Media announced Monday that it has acquired Virtual Press Office in a deal potentially valued at $10 million. VPO will become part of UBM's PR Newswire.
VPO provides communications and marketing services to event organizers, exhibitors and attendees. The business, which was launched in 1996, now serves more than 500 tradeshows.
UBM said VPO will help position PR Newswire as a leader in providing marketing communications services for the U.S. event market. It expects VPO to generate $2.2 million in revenue this year.
United Business Media announced Monday that it has acquired Virtual Press Office in a deal potentially valued at $10 million. VPO will become part of UBM's PR Newswire.
VPO provides communications and marketing services to event organizers, exhibitors and attendees. The business, which was launched in 1996, now serves more than 500 tradeshows.
UBM said VPO will help position PR Newswire as a leader in providing marketing communications services for the U.S. event market. It expects VPO to generate $2.2 million in revenue this year.
Definition 6 acquires Leach Communications
Interactive agency Definition 6 announced it has acquired Leach Communications, a New York public relations and Web services company.
Financial terms of the deal were not disclosed.
Definition 6 plans to integrate Leach Communications' PR capabilities into its integrated online marketing services. Alfred Leach, founder and president of Leach Communications, will lead Definition 6's national public relations and communications practice.
http://www.btobonline.com/apps/pbcs.dll/article?AID=/20091216/FREE/912169994/1078/newsletter011
Financial terms of the deal were not disclosed.
Definition 6 plans to integrate Leach Communications' PR capabilities into its integrated online marketing services. Alfred Leach, founder and president of Leach Communications, will lead Definition 6's national public relations and communications practice.
http://www.btobonline.com/apps/pbcs.dll/article?AID=/20091216/FREE/912169994/1078/newsletter011
Knowledge Networks acquires Caduceus Marketing Research
http://www.btobonline.com/apps/pbcs.dll/article?AID=/20091218/FREE/912189995/1078/newsletter011
Knowledge Networks announced the acquisition of Caduceus Marketing Research, a pharmaceutical and biotech market research firm. Financial terms were undisclosed. The acquisition will expand Knowledge Networks’ full-service market research services to pharmaceutical manufacturers and other health care professionals.
Knowledge Networks announced the acquisition of Caduceus Marketing Research, a pharmaceutical and biotech market research firm. Financial terms were undisclosed. The acquisition will expand Knowledge Networks’ full-service market research services to pharmaceutical manufacturers and other health care professionals.
Sale of Questex to senior lenders completed
http://www.btobonline.com/apps/pbcs.dll/article?AID=/20091218/FREE/912189993/1078/newsletter011
Questex Media Group LLC announced Thursday that it has completed its acquisition of the assets of QMG Holdings Inc. and Questex Media Group Inc., both of which had filed for Chapter 11 protection.
The new company, which comprises senior lenders of the predecessor companies, has separate financing and is not subject to the Chapter 11 cases filed by QMG Holdings or Questex Media Group Inc. The newly formed company now owns Questex's magazines, online media and events as well as InfoTrends, FierceMarkets, FiveStarAlliance, ImagingNetworks, Oxford Publishing and McLean Events International.
Questex Media Group LLC announced Thursday that it has completed its acquisition of the assets of QMG Holdings Inc. and Questex Media Group Inc., both of which had filed for Chapter 11 protection.
The new company, which comprises senior lenders of the predecessor companies, has separate financing and is not subject to the Chapter 11 cases filed by QMG Holdings or Questex Media Group Inc. The newly formed company now owns Questex's magazines, online media and events as well as InfoTrends, FierceMarkets, FiveStarAlliance, ImagingNetworks, Oxford Publishing and McLean Events International.
StrongMail acquires Email Advisor marketing consultancy
http://www.btobonline.com/apps/pbcs.dll/article?AID=/20091218/FREE/912189996/1092/newsletter011
StrongMail said the acquisition of The Email Advisor, which specializes in data analysis, targeting and channel integration, adds expertise in the consumer packaged goods, travel, hospital and association industries.
In July, StrongMail acquired PopularMedia, a provider of social media and marketing solutions, adding PopularMedia's Social Notes functionality that allows the sharing of e-mail or Web site content with most social networks.
StrongMail said the acquisition of The Email Advisor, which specializes in data analysis, targeting and channel integration, adds expertise in the consumer packaged goods, travel, hospital and association industries.
In July, StrongMail acquired PopularMedia, a provider of social media and marketing solutions, adding PopularMedia's Social Notes functionality that allows the sharing of e-mail or Web site content with most social networks.
Marketers spend record amount on branded content
http://www.btobonline.com/apps/pbcs.dll/article?AID=/20091218/FREE/912189998/1092/newsletter011
Marketers spent more on branded content in 2009 than in any previous measured year, according to a study, "The ContentWise and Custom Publishing Councils' 2009 Spending: A Look at How Corporate America Invests in Branded Content," released Thursday by the Custom Publishing Council.
The CPC said that branded content was double that of 2008 and the highest amount since the study was first conducted in 2003. The CPC said that per-company spending among companies surveyed totaled $1.8 million, with 51% spent on custom print publications, 27% on Internet media and 22% on categories including video and audio, which were measured for the first time this year. According to the survey, branded content accounted for 32% of overall marketing, advertising and communications budgets.
Marketers spent more on branded content in 2009 than in any previous measured year, according to a study, "The ContentWise and Custom Publishing Councils' 2009 Spending: A Look at How Corporate America Invests in Branded Content," released Thursday by the Custom Publishing Council.
The CPC said that branded content was double that of 2008 and the highest amount since the study was first conducted in 2003. The CPC said that per-company spending among companies surveyed totaled $1.8 million, with 51% spent on custom print publications, 27% on Internet media and 22% on categories including video and audio, which were measured for the first time this year. According to the survey, branded content accounted for 32% of overall marketing, advertising and communications budgets.
Leadership, ownership change at Doner
http://adage.com/agencynews/article?article_id=141141
Mr. Kalter, 62, announced his departure in a memo to the agency this morning, saying he is selling the agency to three of its top remaining executives, Chief Operating Officer David DeMuth, Chief Creative Officer Rob Strasberg and President Tim Blett.
First, the agency's longtime creative force and vice chairman, John DeCerchio, departed the agency and then sued it in a dispute over the size of the payout related to his 32% equity stake in the shop. Mr. DeCerchio said he was owed $55 million over 10 years; Doner said he was owed $51.5 million.
Another partner and 30-plus-year executive at the agency, H. Barry Levine, quit after Mr. Kalter admitted that the agency's pension fund was not in compliance with federal disclosure laws and regulations.
Mr. Kalter, 62, announced his departure in a memo to the agency this morning, saying he is selling the agency to three of its top remaining executives, Chief Operating Officer David DeMuth, Chief Creative Officer Rob Strasberg and President Tim Blett.
First, the agency's longtime creative force and vice chairman, John DeCerchio, departed the agency and then sued it in a dispute over the size of the payout related to his 32% equity stake in the shop. Mr. DeCerchio said he was owed $55 million over 10 years; Doner said he was owed $51.5 million.
Another partner and 30-plus-year executive at the agency, H. Barry Levine, quit after Mr. Kalter admitted that the agency's pension fund was not in compliance with federal disclosure laws and regulations.
Friday, December 18, 2009
Spendthrift to Penny Pincher: A Vision of the New Consumer
http://online.wsj.com/article/SB126100996572894719.html?mod=dist_smartbrief&mg=com-wsj
The economy appears to have begun recovering after the worst recession in half a century. But businesses ranging from shoemakers to financial services to luxury hotels don't expect American consumers to return to their spendthrift ways anytime soon. They see consumers emerging from the punishing downturn with a new mind-set: careful, practical, more socially conscious and embarrassed by flashy shows of wealth.
"We seem to be at a cultural inflection point that we haven't seen since World War II," said Jim Taylor, vice chairman of market researcher the Harrison Group. Last month it surveyed 1,800 affluent Americans and found that 48% think they could suffer major financial losses in the future. "People are getting used to being careful, and I don't know how you undo that," Mr. Taylor said
The economy appears to have begun recovering after the worst recession in half a century. But businesses ranging from shoemakers to financial services to luxury hotels don't expect American consumers to return to their spendthrift ways anytime soon. They see consumers emerging from the punishing downturn with a new mind-set: careful, practical, more socially conscious and embarrassed by flashy shows of wealth.
"We seem to be at a cultural inflection point that we haven't seen since World War II," said Jim Taylor, vice chairman of market researcher the Harrison Group. Last month it surveyed 1,800 affluent Americans and found that 48% think they could suffer major financial losses in the future. "People are getting used to being careful, and I don't know how you undo that," Mr. Taylor said
Ads Garfield Admired in 2009
http://adage.com/garfield/post?article_id=140999
EXPENSE-A-STEAK
ETSY
APPLE
MONSTER.COM
UNITED BREAKS GUITARS
GWENT POLICE DEPARTMENT
WENDY'S
JET BLUE
SHREDDED WHEAT
EXPENSE-A-STEAK
ETSY
APPLE
MONSTER.COM
UNITED BREAKS GUITARS
GWENT POLICE DEPARTMENT
WENDY'S
JET BLUE
SHREDDED WHEAT
The Six Twitter Types
http://www.openforum.com/idea-hub/topics/the-world/article/the-six-twitter-types-guy-kawasaki
From Guy Kawasaki
1. The Newbie
2. The Brand
3. The Smore
4. The Bitch
5. The Maven
6. The Mensch
His Twitter 101
http://bagtheweb.com/b/4QfhjBOseBAF
From Guy Kawasaki
1. The Newbie
2. The Brand
3. The Smore
4. The Bitch
5. The Maven
6. The Mensch
His Twitter 101
http://bagtheweb.com/b/4QfhjBOseBAF
Friday, December 11, 2009
Forecasters Predict Ad Stabilization in 2010
The global advertising market will start to stabilize next year, following double-digits declines in 2009, but more-established markets such as the U.S. won't gain steam for some time, according to some of Madison Avenue's most closely watched forecasts.
http://online.wsj.com/article/SB10001424052748704825504574582310496271156.html?mod=dist_smartbrief
Fallout from the global financial crisis will linger in the U.S. ad market in 2010, the forecasts say. Interpublic Group media agency Magna predicts that U.S. ad revenues—the revenue reaped by media companies in selling ad space and time—will grow just 0.2% to $162.7 billion and reach low-single-digit growth rates by 2012. Publicis Groupe's Zenith Optimedia, which tracks ad spending instead, projects that it will shrink 2.6% to $144 billion in the U.S next year.
http://online.wsj.com/article/SB10001424052748704825504574582310496271156.html?mod=dist_smartbrief
Fallout from the global financial crisis will linger in the U.S. ad market in 2010, the forecasts say. Interpublic Group media agency Magna predicts that U.S. ad revenues—the revenue reaped by media companies in selling ad space and time—will grow just 0.2% to $162.7 billion and reach low-single-digit growth rates by 2012. Publicis Groupe's Zenith Optimedia, which tracks ad spending instead, projects that it will shrink 2.6% to $144 billion in the U.S next year.
'Great Race' Between Traditional, Digital Shops
Clients generally distrust their traditional agencies when it comes to digital, but they're still wary of handing over the keys to overall brand strategy to the Web specialists, according to a new survey of marketers.
http://www.adweek.com/aw/content_display/news/digital/e3ibcf36932032fa8afc111d9672a21abe8
Clients generally distrust their traditional agencies when it comes to digital, but they're still wary of handing over the keys to overall brand strategy to the Web specialists, according to a new survey of marketers. Forrester Research conducted a "state of interactive agencies" survey of about 100 global interactive marketers. It found just 23 percent believed their "traditional brand agency" is capable of planning and managing interactive marketing activities. About 46 percent did not believe them capable, with the rest neutral on the question.
http://www.adweek.com/aw/content_display/news/digital/e3ibcf36932032fa8afc111d9672a21abe8
Clients generally distrust their traditional agencies when it comes to digital, but they're still wary of handing over the keys to overall brand strategy to the Web specialists, according to a new survey of marketers. Forrester Research conducted a "state of interactive agencies" survey of about 100 global interactive marketers. It found just 23 percent believed their "traditional brand agency" is capable of planning and managing interactive marketing activities. About 46 percent did not believe them capable, with the rest neutral on the question.
Martin Sorrell: vicious price competition
http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=118803
The lingering effects of the global economic recession have led to "vicious price competition" among media services shops, including at least two situations in which agencies have personally guaranteed the media prices paid by their clients, noted Martin Sorrell, CEO of WPP, the world's largest buyer of media.
Speaking at the UBS Media Week conference in New York, Sorrell did not disclose the names of the media shops, but said at least one of the deals -- which he described as "giving guarantees on media pricing beyond the fees" the agencies receive -- has led to a lawsuit by a client seeking to enforce the guarantee.
"It's been denied, but I would rebut the denial," Sorrell said, calling the practice "extremely dangerous in my view. It's particularly dangerous if we see media price inflation."
He said that's likely to happen, despite the fact that media suppliers have sought to control their margins by cutting costs; there already is some evidence of media price inflation. For example, network TV scatter prices have surged relative to the prices advertisers paid during last year's upfront marketplace in the U.S.
Sorrell said the media price guarantee practice was one of several "short-sighted" steps being taken by agencies, media companies and clients alike to deal with the pressures of the global economic recession. As far as WPP is concerned, "media continues to be the really tough part of the business."
He cited the incessant pressure from client procurement departments to put greater pressure on agency fees, as well as the prices they pay the media.
Sorrell characterized such advertising marketplace behaviors as irrational, and attributed them as reactions to the near economic collapse that happened last year. Also, that many companies have simply been seeking to remain in business, as opposed to developing long-term strategies to grow their businesses.
He began his talk by shaking his head at the giddiness of some media companies reporting revenue declines of as much as 25%.
"How can you defend that the minus 25% is an acceptable solution? Or that you get some sort of joy from reporting numbers like that?" Sorrell emphasized later during the question-and-answer portion of his presentation. "In three years, you're out of business."
Sorrell did say that the marketplace appeared to have improved in November, but that it is not clear how sustainable that growth might prove to be.
He described the turn as being "more, less worse," and even suggested that the characterization would be "mis-reported" by the trade press, but what he meant was that on a relative basis, the ad industry is losing less ground than it had been at the height of the recession.
He said the global advertising outlook is more likely to look like the forecasts reported on Tuesday by his GroupM unit and Publicis' ZenithOptimedia, which called for slightly less than 1% expansion in 2010, and called Interpublic's forecast of 6% growth a "rogue" forecast.
Sorrell said the real engines of growth continue to be digital media and emerging markets -- especially China -- but characterized some new digital media phenomenon, particularly social networks like Facebook and microblogs like Twitter as potentially being short-lived, and said it is rare that digital media companies such as Google emerge with long-term traction in the advertising marketplace.
He also said that mobile media remains more underdeveloped than he would have expected, or would like to see, but that he believes Google's new Adroid operating system, and the smartphones being powered by it, would ultimately create a marketplace around mobile search and mobile advertising models.
"Google is the push for this," Sorrell predicted.
The lingering effects of the global economic recession have led to "vicious price competition" among media services shops, including at least two situations in which agencies have personally guaranteed the media prices paid by their clients, noted Martin Sorrell, CEO of WPP, the world's largest buyer of media.
Speaking at the UBS Media Week conference in New York, Sorrell did not disclose the names of the media shops, but said at least one of the deals -- which he described as "giving guarantees on media pricing beyond the fees" the agencies receive -- has led to a lawsuit by a client seeking to enforce the guarantee.
"It's been denied, but I would rebut the denial," Sorrell said, calling the practice "extremely dangerous in my view. It's particularly dangerous if we see media price inflation."
He said that's likely to happen, despite the fact that media suppliers have sought to control their margins by cutting costs; there already is some evidence of media price inflation. For example, network TV scatter prices have surged relative to the prices advertisers paid during last year's upfront marketplace in the U.S.
Sorrell said the media price guarantee practice was one of several "short-sighted" steps being taken by agencies, media companies and clients alike to deal with the pressures of the global economic recession. As far as WPP is concerned, "media continues to be the really tough part of the business."
He cited the incessant pressure from client procurement departments to put greater pressure on agency fees, as well as the prices they pay the media.
Sorrell characterized such advertising marketplace behaviors as irrational, and attributed them as reactions to the near economic collapse that happened last year. Also, that many companies have simply been seeking to remain in business, as opposed to developing long-term strategies to grow their businesses.
He began his talk by shaking his head at the giddiness of some media companies reporting revenue declines of as much as 25%.
"How can you defend that the minus 25% is an acceptable solution? Or that you get some sort of joy from reporting numbers like that?" Sorrell emphasized later during the question-and-answer portion of his presentation. "In three years, you're out of business."
Sorrell did say that the marketplace appeared to have improved in November, but that it is not clear how sustainable that growth might prove to be.
He described the turn as being "more, less worse," and even suggested that the characterization would be "mis-reported" by the trade press, but what he meant was that on a relative basis, the ad industry is losing less ground than it had been at the height of the recession.
He said the global advertising outlook is more likely to look like the forecasts reported on Tuesday by his GroupM unit and Publicis' ZenithOptimedia, which called for slightly less than 1% expansion in 2010, and called Interpublic's forecast of 6% growth a "rogue" forecast.
Sorrell said the real engines of growth continue to be digital media and emerging markets -- especially China -- but characterized some new digital media phenomenon, particularly social networks like Facebook and microblogs like Twitter as potentially being short-lived, and said it is rare that digital media companies such as Google emerge with long-term traction in the advertising marketplace.
He also said that mobile media remains more underdeveloped than he would have expected, or would like to see, but that he believes Google's new Adroid operating system, and the smartphones being powered by it, would ultimately create a marketplace around mobile search and mobile advertising models.
"Google is the push for this," Sorrell predicted.
Wednesday, December 9, 2009
OutdoorPartner Media announces agreement to sell Intelligent Media Corporation assets
http://finance.yahoo.com/news/OutdoorPartner-Media-cnw-1788421196.html?x=0&.v=1
OutdoorPartner and it U.S. operating subsidiary, Intelligent Media Corporation operating under the name Prime Point Media ("PPM"), have entered into an agreement dated December 7, 2009 (the "Purchase Agreement") with Brite Media Group LLC ("Brite Media") and a newly formed subsidiary of Brite Media ( "NewCo"), pursuant to which PPM has agreed to sell substantially all of its assets, including all of its phone kiosk and other media-related assets (the "Phone Kiosk Assets"). Pursuant to the terms of the Purchase Agreement, in exchange for the Phone Kiosk Assets, NewCo will assume certain liabilities and pay OutdoorPartner cash consideration of US$2.0 million, subject to a working capital adjustment and an adjustment based on revenue between closing and April 30, 2010. Closing is conditional on obtaining OutdoorPartner shareholder approval and other customary conditions, including receipt of all necessary regulatory approvals. The Purchase Agreement includes a non-solicitation covenant by OutdoorPartner, subject to customary provisions that entitle OutdoorPartner to consider and accept a superior proposal, as defined in the Purchase Agreement, to purchase the Phone Kiosk Assets or all of the assets or share capital of OutdoorPartner. The Purchase Agreement also provides NewCo with the right to match any superior proposal and provides for a termination payment of US$195,000 payable by OutdoorPartner to NewCo if the Transaction is terminated as a result of a superior proposal. In addition, the Purchase Agreement provides for a termination payment of US$100,000 payable by OutdoorPartner to NewCo if the Transaction is not approved by OutdoorPartner shareholders.
OutdoorPartner and it U.S. operating subsidiary, Intelligent Media Corporation operating under the name Prime Point Media ("PPM"), have entered into an agreement dated December 7, 2009 (the "Purchase Agreement") with Brite Media Group LLC ("Brite Media") and a newly formed subsidiary of Brite Media ( "NewCo"), pursuant to which PPM has agreed to sell substantially all of its assets, including all of its phone kiosk and other media-related assets (the "Phone Kiosk Assets"). Pursuant to the terms of the Purchase Agreement, in exchange for the Phone Kiosk Assets, NewCo will assume certain liabilities and pay OutdoorPartner cash consideration of US$2.0 million, subject to a working capital adjustment and an adjustment based on revenue between closing and April 30, 2010. Closing is conditional on obtaining OutdoorPartner shareholder approval and other customary conditions, including receipt of all necessary regulatory approvals. The Purchase Agreement includes a non-solicitation covenant by OutdoorPartner, subject to customary provisions that entitle OutdoorPartner to consider and accept a superior proposal, as defined in the Purchase Agreement, to purchase the Phone Kiosk Assets or all of the assets or share capital of OutdoorPartner. The Purchase Agreement also provides NewCo with the right to match any superior proposal and provides for a termination payment of US$195,000 payable by OutdoorPartner to NewCo if the Transaction is terminated as a result of a superior proposal. In addition, the Purchase Agreement provides for a termination payment of US$100,000 payable by OutdoorPartner to NewCo if the Transaction is not approved by OutdoorPartner shareholders.
Cosmos ends four-month bid for Cossette ad agency
http://www.reuters.com/article/idCAN0717927520091207?rpc=44
Cosmos Capital Inc, a Canadian private equity group, said late on Monday it withdrew from a bidding war for the nation's largest domestic advertiser, Cossette Inc, four months after its first bid was rejected.
Cosmos Capital Inc, a Canadian private equity group, said late on Monday it withdrew from a bidding war for the nation's largest domestic advertiser, Cossette Inc, four months after its first bid was rejected.
MDC Partners Announces Agreement To Acquire Communifx, A Leading Analytics And Database Marketing Firm
http://finance.yahoo.com/news/MDC-Partners-Announces-prnews-3676823553.html?x=0&.v=2
MDC Partners Inc. announced today that it has entered into an agreement to acquire Communifx, a data analytics and database marketing firm that specializes in engagement marketing and optimization solutions.
The acquisition of Communifx is expected to be a very important strategic addition to MDC Partners Performance Marketing Services Group. Communifx specializes in the development and delivery of consumer engagement marketing solutions, and is unique in its approach to underpinning interactive and social marketing platforms with database and analytics technology, thereby informing each customer engagement with insights that ultimately deliver greater value for the brand and the consumer. The firm offers a comprehensive range of services from consumer engagement strategy development, to database management and analytics, concept design and implementation, to production and execution of data-driven marketing ideas and initiatives. Communifx's services will be integrated with the offerings of MDC's existing firms to provide a broader scope of solutions to the marketplace.
MDC Partners Inc. announced today that it has entered into an agreement to acquire Communifx, a data analytics and database marketing firm that specializes in engagement marketing and optimization solutions.
The acquisition of Communifx is expected to be a very important strategic addition to MDC Partners Performance Marketing Services Group. Communifx specializes in the development and delivery of consumer engagement marketing solutions, and is unique in its approach to underpinning interactive and social marketing platforms with database and analytics technology, thereby informing each customer engagement with insights that ultimately deliver greater value for the brand and the consumer. The firm offers a comprehensive range of services from consumer engagement strategy development, to database management and analytics, concept design and implementation, to production and execution of data-driven marketing ideas and initiatives. Communifx's services will be integrated with the offerings of MDC's existing firms to provide a broader scope of solutions to the marketplace.
Uptick in Global Ad Spending Is Forecast for 2010
http://www.nytimes.com/2009/12/09/business/media/09adco.html?partner=yahoofinance
The predictions all called for an increase in worldwide ad spending in 2010 compared with 2009, which by most measures will end up as the worst year in decades. Still, there were caveats, among them an expectation for a less robust recovery in the United States than in other markets and continued weakness in demand for ads in print media like magazines and newspapers.
And ad spending is unlikely to snap back quickly, the forecasters warned, but rather will take several years to return to the levels of 2007 or 2008.
In ascending order, the forecasts for 2010 compared with 2009 call for an increase of 0.8 percent, from the GroupM unit of WPP; 0.9 percent, from the ZenithOptimedia division of the Publicis Groupe; and 5.9 percent, from the Magna unit of Mediabrands, a division of the Interpublic Group of Companies. (A forecast from UBS, offered during the panel discussion, was for an increase of 3.9 percent.)
Of the 10 largest advertisers in the United States for the first nine months of 2009, TNS reported, eight spent less than they did during the same period a year ago. The exceptions were Pfizer, up 11 percent, and Sprint Nextel, up 51.1 percent. The declines ranged from 1.3 percent for Johnson & Johnson to 15.9 percent for the largest advertiser, Procter & Gamble.
The predictions all called for an increase in worldwide ad spending in 2010 compared with 2009, which by most measures will end up as the worst year in decades. Still, there were caveats, among them an expectation for a less robust recovery in the United States than in other markets and continued weakness in demand for ads in print media like magazines and newspapers.
And ad spending is unlikely to snap back quickly, the forecasters warned, but rather will take several years to return to the levels of 2007 or 2008.
In ascending order, the forecasts for 2010 compared with 2009 call for an increase of 0.8 percent, from the GroupM unit of WPP; 0.9 percent, from the ZenithOptimedia division of the Publicis Groupe; and 5.9 percent, from the Magna unit of Mediabrands, a division of the Interpublic Group of Companies. (A forecast from UBS, offered during the panel discussion, was for an increase of 3.9 percent.)
Of the 10 largest advertisers in the United States for the first nine months of 2009, TNS reported, eight spent less than they did during the same period a year ago. The exceptions were Pfizer, up 11 percent, and Sprint Nextel, up 51.1 percent. The declines ranged from 1.3 percent for Johnson & Johnson to 15.9 percent for the largest advertiser, Procter & Gamble.
Forecast: Online Will Take More Ad Dollars Than Newspapers By 2015
http://paidcontent.org/article/419-forecast-online-will-take-more-ad-dollars-than-newspapers-by-2015/
The net was the only medium to attract more money in 2009 in Zenith’s figures, though its growth curve is flatter than the early-2000s heyday growth of 40+ percent a year. It’s now on track for more modest but consistent growth pace of 9.5 percent (2010), 12 percent (2011) and 13 percent (2012), in line with that of TV, which will remain the dominant medium.
While those two media will go on attracting more money up to 2012, all others are flat or in decline. Though newspapers now enjoy a 10.9 percent lead over the internet for share of ad dollars, the lead will slim to just 3.8 percent by 2012, when the internet will take 16.2 percent of all spend.
Zenith says: “We expect the internet to overtake newspapers to become the world’s second-largest advertising medium by the time we are half-way through the next decade.”
The net was the only medium to attract more money in 2009 in Zenith’s figures, though its growth curve is flatter than the early-2000s heyday growth of 40+ percent a year. It’s now on track for more modest but consistent growth pace of 9.5 percent (2010), 12 percent (2011) and 13 percent (2012), in line with that of TV, which will remain the dominant medium.
While those two media will go on attracting more money up to 2012, all others are flat or in decline. Though newspapers now enjoy a 10.9 percent lead over the internet for share of ad dollars, the lead will slim to just 3.8 percent by 2012, when the internet will take 16.2 percent of all spend.
Zenith says: “We expect the internet to overtake newspapers to become the world’s second-largest advertising medium by the time we are half-way through the next decade.”
Monday, December 7, 2009
Phil Geier's Tips for Survival
http://adage.com/agencynews/article?article_id=140895
Mr. Geier started at McCann-Erickson in 1958 and in 2000 retired as chairman-CEO of Interpublic Group of Cos. after a 20-year run in that post. A onetime chairman of the Ad Council, he currently serves as chairman of the Geier Group, a New York-based marketing communications and venture-capital firm.
Now 74, he began working on his first book, "Survive to Thrive: Sustaining Yourself, Your Brand, and Your Business from Recession to Recovery," last spring. The 250-page tome is written in the form of a time line, interspersed with business lessons learned working with blue-chip Interpublic clients such as Coca-Cola, Nestle and L'Oréal.
Mr. Geier: This one is a much tougher recession than the others because of the fact that the financial infrastructure has been semi-destroyed. In the past that's not been the problem, it has been that consumer aspects are hurt. This is worse, and it's going to take longer to come out of. The problem now is getting the consumer to spend, because if we don't do that, the economy isn't going to come back. You've got to entice them to save and spend at the same time, which is not easy.
The holding-company operation is still valid as long as it maintains the position that they can provide administrative and financial services in the center, and at a lower cost than they would if they were in the individual agencies. But [regardless of the model] the most important thing is making sure that the right people are in place at the agencies.
Mr. Geier started at McCann-Erickson in 1958 and in 2000 retired as chairman-CEO of Interpublic Group of Cos. after a 20-year run in that post. A onetime chairman of the Ad Council, he currently serves as chairman of the Geier Group, a New York-based marketing communications and venture-capital firm.
Now 74, he began working on his first book, "Survive to Thrive: Sustaining Yourself, Your Brand, and Your Business from Recession to Recovery," last spring. The 250-page tome is written in the form of a time line, interspersed with business lessons learned working with blue-chip Interpublic clients such as Coca-Cola, Nestle and L'Oréal.
Mr. Geier: This one is a much tougher recession than the others because of the fact that the financial infrastructure has been semi-destroyed. In the past that's not been the problem, it has been that consumer aspects are hurt. This is worse, and it's going to take longer to come out of. The problem now is getting the consumer to spend, because if we don't do that, the economy isn't going to come back. You've got to entice them to save and spend at the same time, which is not easy.
The holding-company operation is still valid as long as it maintains the position that they can provide administrative and financial services in the center, and at a lower cost than they would if they were in the individual agencies. But [regardless of the model] the most important thing is making sure that the right people are in place at the agencies.
Friday, December 4, 2009
B-to-b print, trade show and digital revenues decline
http://www.btobonline.com/apps/pbcs.dll/article?AID=/20091201/MEDIABUSINESS/912019990/1078/newsletter011
B-to-b print, trade show and digital marketing revenues continued their declines through the first three quarters of this year, according to data released Tuesday by American Business Media’s Business Information Network.
Print revenue fell 25.7% in the first three quarters of this year compared with the same period last year. Trade show revenue declined 19.2%, and digital revenue dipped 3.0%.
B-to-b spending on these three marketing platforms totaled $15.1 billion for the period, a drop off of 19.3% from the year-earlier period. Print’s share of b-to-b revenue fell from 40.7% in the first three quarters of 2008 to 37.4% this year. In the same time frame, trade shows’ share of revenue remained steady at 41.6%, while digital’s share of revenue climbed from 17.7% to 20.9%.
B-to-b print, trade show and digital marketing revenues continued their declines through the first three quarters of this year, according to data released Tuesday by American Business Media’s Business Information Network.
Print revenue fell 25.7% in the first three quarters of this year compared with the same period last year. Trade show revenue declined 19.2%, and digital revenue dipped 3.0%.
B-to-b spending on these three marketing platforms totaled $15.1 billion for the period, a drop off of 19.3% from the year-earlier period. Print’s share of b-to-b revenue fell from 40.7% in the first three quarters of 2008 to 37.4% this year. In the same time frame, trade shows’ share of revenue remained steady at 41.6%, while digital’s share of revenue climbed from 17.7% to 20.9%.
Cheil Worldwide acquires Barbarian Group
http://www.dmnews.com/cheil-worldwide-acquires-barbarian-group/article/159025/
Cheil Worldwide, a Korea-based agency, acquired a majority stake in New York-based digital firm The Barbarian Group this week. Terms of the deal were not disclosed.
Barbarian, founded in 2001, will keep its brand and office. Its three founders will continue to run the company. The deal, signed December 2, is expected to close next week.
“We want to be bolder and more capable, and we are excited that Cheil can provide that opportunity for us,” said Rick Webb, co-founder and COO of Barbarian, in a blog post.
The acquisition of Barbarian, known for pushing the envelope in creative campaigns, including Burger King's “Subservient Chicken” video and the Virgin America "Name our Planes" campaign, is part of Cheil's long-term growth plans, as the group looks to do more business in the US, according to a company statement.
Cheil, which was ranked as the 16th-largest agency company in the world by Advertising Age, has offices in 25 countries, as well as in New Jersey and Dallas. Yet this deal gives the company a New York presences for the first time.
http://www.newswire.ca/en/releases/archive/December2009/02/c7325.html
The Barbarian Group was founded in 2001 in Palmer's apartment with a borrowed $500 and a dream to reinvent the way agencies worked with production companies to create effective digital marketing. They mastered that dream by 2004, culminating in their work for Burger King. From there, the company expanded beyond production roots, indeed, beyond "digital advertising" as the agency world views it. Today, the company has three offices, and provides a full range of digital marketing, planning, technology and strategy not just to brands such as Kashi and Red Bull, but to technology companies, publishers and entertainment properties. Their recent work with CNN Shirts and their work with several start ups illustrates this diverse client base. As a result, The Barbarian Group is now one of the most respected digital marketing companies.
Cheil Worldwide, a Korea-based agency, acquired a majority stake in New York-based digital firm The Barbarian Group this week. Terms of the deal were not disclosed.
Barbarian, founded in 2001, will keep its brand and office. Its three founders will continue to run the company. The deal, signed December 2, is expected to close next week.
“We want to be bolder and more capable, and we are excited that Cheil can provide that opportunity for us,” said Rick Webb, co-founder and COO of Barbarian, in a blog post.
The acquisition of Barbarian, known for pushing the envelope in creative campaigns, including Burger King's “Subservient Chicken” video and the Virgin America "Name our Planes" campaign, is part of Cheil's long-term growth plans, as the group looks to do more business in the US, according to a company statement.
Cheil, which was ranked as the 16th-largest agency company in the world by Advertising Age, has offices in 25 countries, as well as in New Jersey and Dallas. Yet this deal gives the company a New York presences for the first time.
http://www.newswire.ca/en/releases/archive/December2009/02/c7325.html
The Barbarian Group was founded in 2001 in Palmer's apartment with a borrowed $500 and a dream to reinvent the way agencies worked with production companies to create effective digital marketing. They mastered that dream by 2004, culminating in their work for Burger King. From there, the company expanded beyond production roots, indeed, beyond "digital advertising" as the agency world views it. Today, the company has three offices, and provides a full range of digital marketing, planning, technology and strategy not just to brands such as Kashi and Red Bull, but to technology companies, publishers and entertainment properties. Their recent work with CNN Shirts and their work with several start ups illustrates this diverse client base. As a result, The Barbarian Group is now one of the most respected digital marketing companies.
Wednesday, December 2, 2009
Digital Agency Will Take Over Advertiser’s Creative Account
In another sign of the growing importance of digital advertising, an agency that specializes in interactive work is being named to handle the entire creative assignment for a marketer of financial services.
R/GA in New York, part of the Interpublic Group of Companies, is to be named on Wednesday as the creative agency of record for Ameriprise Financial. The assignment to create campaigns for Ameriprise, with annual spending estimated at $30 million, had been handled for the past four years by Saatchi & Saatchi in New York, part of the Publicis Groupe.
Although R/GA “is known for its digital work,” said Kim M. Sharan, chief marketing officer at Ameriprise in Minneapolis, the agency “brought us some fresh creative ideas” that warranted naming R/GA to create campaigns in all forms of media.
Of course, the digital experience of R/GA factored into the decision, too. In reaching its desired audience of consumers who are, as Ms. Sharan put it, ages “40 to 65-ish,” advertising online “has been, and continues to be, an important area to beef up,” she said.
http://mediadecoder.blogs.nytimes.com/2009/12/02/digital-agency-taking-over-advertisers-entire-creative-account/
R/GA in New York, part of the Interpublic Group of Companies, is to be named on Wednesday as the creative agency of record for Ameriprise Financial. The assignment to create campaigns for Ameriprise, with annual spending estimated at $30 million, had been handled for the past four years by Saatchi & Saatchi in New York, part of the Publicis Groupe.
Although R/GA “is known for its digital work,” said Kim M. Sharan, chief marketing officer at Ameriprise in Minneapolis, the agency “brought us some fresh creative ideas” that warranted naming R/GA to create campaigns in all forms of media.
Of course, the digital experience of R/GA factored into the decision, too. In reaching its desired audience of consumers who are, as Ms. Sharan put it, ages “40 to 65-ish,” advertising online “has been, and continues to be, an important area to beef up,” she said.
http://mediadecoder.blogs.nytimes.com/2009/12/02/digital-agency-taking-over-advertisers-entire-creative-account/
Cossette value double since putting itself on sale
http://www.reuters.com/article/marketsNews/idCAN2639561320091126?rpc=44
Saying "no" to a hostile bid has virtually doubled the value of Cossette Inc (KOS.TO) and set the stage for a showdown next month between two private equity firms wooing Canada's biggest home-grown ad agency.
Stock in the Quebec-based company languished at C$3.25 a share, close to an all-time low, when Canadian private equity firm Cosmos Capital took a first run at the company in July. Its C$4.95-a-share offer valued the agency at C$78.2 million ($73 million).
Cossette responded by putting itself on the block and hiring Bank of Montreal (BMO.TO) to drum up suitors. It now trades at over C$8 a share as bids or proposals -- there have been five so far -- keep getting higher even as struggling global markets keep advertisers in a trough.
"The board did its job," said one observer, commending Cossette decision makers for not seizing the first bid to come along.
As recently as in 2007 Cossette stock was worth almost C$14 a share, but that was before it lost some key accounts and before most of the modern world entered recession.
The agency has offices in Britain, the United States and China, as well as Canada. It has a major presence in the French-speaking province of Quebec, a difficult market for foreign companies to crack.
But the battle for control has become increasingly acrimonious, and Cossette's challenge is to identify the best bidder, without ruining the chances of a deal.
WHICH ONE?
The two bids currently on the table are each worth C$7.87 a share, one of them from U.S private equity group Mill Road Capital and the second from Cosmos, whose principal investors include two Cossette founders.
Cossette's management recommends the Mill Road offer, which is already backed by 30 percent of shareholders. The proposal is not subject to due diligence and lets Chief Executive Claude Lessard keep running the company.
But Cossette, which serves major transnational clients, including McDonald's, Bell Canada, General Motors and Coca-Cola, can't consummate the deal.
Lockup agreements between Cosmos and two major shareholders give Cosmos control of more than 37 percent of Cossette stock, and an agreement needs 66 2/3 percent approval to go through.
Saying "no" to a hostile bid has virtually doubled the value of Cossette Inc (KOS.TO) and set the stage for a showdown next month between two private equity firms wooing Canada's biggest home-grown ad agency.
Stock in the Quebec-based company languished at C$3.25 a share, close to an all-time low, when Canadian private equity firm Cosmos Capital took a first run at the company in July. Its C$4.95-a-share offer valued the agency at C$78.2 million ($73 million).
Cossette responded by putting itself on the block and hiring Bank of Montreal (BMO.TO) to drum up suitors. It now trades at over C$8 a share as bids or proposals -- there have been five so far -- keep getting higher even as struggling global markets keep advertisers in a trough.
"The board did its job," said one observer, commending Cossette decision makers for not seizing the first bid to come along.
As recently as in 2007 Cossette stock was worth almost C$14 a share, but that was before it lost some key accounts and before most of the modern world entered recession.
The agency has offices in Britain, the United States and China, as well as Canada. It has a major presence in the French-speaking province of Quebec, a difficult market for foreign companies to crack.
But the battle for control has become increasingly acrimonious, and Cossette's challenge is to identify the best bidder, without ruining the chances of a deal.
WHICH ONE?
The two bids currently on the table are each worth C$7.87 a share, one of them from U.S private equity group Mill Road Capital and the second from Cosmos, whose principal investors include two Cossette founders.
Cossette's management recommends the Mill Road offer, which is already backed by 30 percent of shareholders. The proposal is not subject to due diligence and lets Chief Executive Claude Lessard keep running the company.
But Cossette, which serves major transnational clients, including McDonald's, Bell Canada, General Motors and Coca-Cola, can't consummate the deal.
Lockup agreements between Cosmos and two major shareholders give Cosmos control of more than 37 percent of Cossette stock, and an agreement needs 66 2/3 percent approval to go through.
mktg raises $5M financing from Union Capital
http://finance.yahoo.com/news/mktg-inc-Enters-Into-prnews-441430056.html?x=0&.v=1
'mktg, inc.' (Nasdaq: CMKG - News) is an alternative media and marketing services company headquartered in New York with full service offices in San Francisco, Chicago, Cincinnati and Toronto. The company currently serves a variety of the world's most recognizable brands, including CBS, Diageo, P&G, Nintendo, Pepsi, Nike, Apple, Scottrade and Google/YouTube. The company's services include experiential marketing, digital marketing, retail promotions and strategic research and planning. The firm's programs help its clients profitably connect with consumers and create networks of brand advocates to generate brand awareness and higher sales for its customers.
The Financing will consist of $2.5 million in aggregate principal amount of Senior Secured Notes, $2.5 million in aggregate stated value of Series D Convertible Participating Preferred Stock, and Warrants to purchase 2,456,272 shares of Common Stock.
The Company previously reported that it was under financial strain and needed to seek working capital in light of recent losses, the suspension of its revolving credit facility and cash collateralization of its term loan (which has since been repaid), and a reduction in advance payments by clients.
'mktg, inc.' (Nasdaq: CMKG - News) is an alternative media and marketing services company headquartered in New York with full service offices in San Francisco, Chicago, Cincinnati and Toronto. The company currently serves a variety of the world's most recognizable brands, including CBS, Diageo, P&G, Nintendo, Pepsi, Nike, Apple, Scottrade and Google/YouTube. The company's services include experiential marketing, digital marketing, retail promotions and strategic research and planning. The firm's programs help its clients profitably connect with consumers and create networks of brand advocates to generate brand awareness and higher sales for its customers.
The Financing will consist of $2.5 million in aggregate principal amount of Senior Secured Notes, $2.5 million in aggregate stated value of Series D Convertible Participating Preferred Stock, and Warrants to purchase 2,456,272 shares of Common Stock.
The Company previously reported that it was under financial strain and needed to seek working capital in light of recent losses, the suspension of its revolving credit facility and cash collateralization of its term loan (which has since been repaid), and a reduction in advance payments by clients.
Gartner to acquire AMR Research for $64M
http://boston.bizjournals.com/boston/stories/2009/11/30/daily17.html?ana=yfcpc
Technology-focused research firm Gartner Inc. has agreed to acquire Boston-based AMR Research Inc. for approximately $64 million in cash.
According to Gene Hall, CEO of Stamford, Conn.-based Gartner (NYSE: IT), the firm will add AMR Research’s team of approximately 40 research analysts and 45 sales executives to its ranks. However, Gartner stated it would likely achieve unspecified “operational efficiencies” following the closing of the purchase.
AMR Research also has a tech focus, more narrowly aimed at the supply chain management arena within the information technology field.
The local firm expects to generate approximately $40 million in revenue this year. The deal is subject to typical closing conditions. It is expected to close by Jan. 1, Gartner officials said.
Technology-focused research firm Gartner Inc. has agreed to acquire Boston-based AMR Research Inc. for approximately $64 million in cash.
According to Gene Hall, CEO of Stamford, Conn.-based Gartner (NYSE: IT), the firm will add AMR Research’s team of approximately 40 research analysts and 45 sales executives to its ranks. However, Gartner stated it would likely achieve unspecified “operational efficiencies” following the closing of the purchase.
AMR Research also has a tech focus, more narrowly aimed at the supply chain management arena within the information technology field.
The local firm expects to generate approximately $40 million in revenue this year. The deal is subject to typical closing conditions. It is expected to close by Jan. 1, Gartner officials said.
Monday, November 23, 2009
WPP Group More Than Doubles Its Money In Omniture Deal
http://www.businessinsider.com/wpp-doubles-its-money-in-omniture-deal-2009-9
One winner in Adobe's $1.8 billion deal to acquire Web analytics company Omniture: WPP Group, the ad giant, which invested $25 million in Omniture in January and stands to more than double its money.
One winner in Adobe's $1.8 billion deal to acquire Web analytics company Omniture: WPP Group, the ad giant, which invested $25 million in Omniture in January and stands to more than double its money.
An Advertising Rebound?
http://www.forbes.com/2009/10/30/wpp-advertising-consumers-markets-economy-media.html?partner=yahootix
The company's head, media veteran Martin Sorrell, gave his usual appraisal of the global economy and the advertising world, giving observers the chance to glean small signs of hope: "There is little doubt that consumer and corporate confidence has recovered somewhat from the panic levels of the fourth quarter of 2008 and first quarter of 2009," he said.
"Confidence, however, remains fragile amongst consumers, because of the shadow of high unemployment levels and amongst corporates… Whilst the hearts of CEOs and CMOs are stronger and their minds clearer, increased confidence is still not transferring to their check-writing hands."
The company's head, media veteran Martin Sorrell, gave his usual appraisal of the global economy and the advertising world, giving observers the chance to glean small signs of hope: "There is little doubt that consumer and corporate confidence has recovered somewhat from the panic levels of the fourth quarter of 2008 and first quarter of 2009," he said.
"Confidence, however, remains fragile amongst consumers, because of the shadow of high unemployment levels and amongst corporates… Whilst the hearts of CEOs and CMOs are stronger and their minds clearer, increased confidence is still not transferring to their check-writing hands."
Cosmos raises bid for ad agency Cossette
http://www.reuters.com/article/marketsNews/idCAN1746684320091118?rpc=44
* Offer is Cosmos' third and most aggressive since July
* Matches earlier private equity offer
* Cosmos says could go higher if allowed into data room (Adds details, byline)
By Pav Jordan
TORONTO, Nov 17 (Reuters) - Canada's Cosmos Capital raised its takeover offer late on Tuesday for advertiser Cossette Inc (KOS.TO), matching a rival offer by a U.S. private equity group and saying it could go even higher.
The offer valued Cossette at C$131.5 million ($125.1 million) and is the third attempt by Cosmos to take over Canada's largest homegrown advertising agency.
It is also its most aggressive, and a source close to the negotiations said it would force rival Mill Road Capital to either raise its own C$131.5 million bid, or back down from the takeover battle.
Cossette is small by international standards -- ranked about 23rd globally -- but is a giant in Canada, where it grew from a tiny shop in the early 1970s to a transnational firm with clients including McDonald's (MCD.N) Restaurants of Canada, Bell Canada (BCE_pe.TO), General Motors of Canada and Coca-Cola Ltd (KO.N).
Cossette's allure includes a strong presence in Canada's French-speaking province Quebec, a difficult market to crack for foreign companies, as well as assets in Britain, where it set up in 2003.
Cosmos, advised by Genuity Capital Markets, controls 18.7 percent of Cossette. It also has lock-up agreements with Bergundy Asset Management, which holds 11.1 percent, and Beutel Goodman & Co, with 7.6 percent of the shares.
"By matching, Cosmos has secured those and what that means is that the Mill Road transaction can't go forward," the source said, because the Mill Road offer would need support of two-thirds of the shares to go forward.
The source said the decision to match, and not exceed, the Mill Road offer was based on the need to secure the lock-up agreements.
Cossette could not be reached for immediate comment.
Like Mill Road's Nov. 10 bid, Cosmos offered C$7.87 per share, all cash, for each of the approximately 16.7 million issued and outstanding subordinate voting shares of Cossette.
The offer was fully financed, but it was conditional to due diligence and to receiving access to Cossette's virtual data room after it was barred from it in July, following its first hostile bid.
The offer on Tuesday bettered a C$5.25 a share, C$88 million, offer by Cosmos in October and a July offer at C$4.95 a share.
* Offer is Cosmos' third and most aggressive since July
* Matches earlier private equity offer
* Cosmos says could go higher if allowed into data room (Adds details, byline)
By Pav Jordan
TORONTO, Nov 17 (Reuters) - Canada's Cosmos Capital raised its takeover offer late on Tuesday for advertiser Cossette Inc (KOS.TO), matching a rival offer by a U.S. private equity group and saying it could go even higher.
The offer valued Cossette at C$131.5 million ($125.1 million) and is the third attempt by Cosmos to take over Canada's largest homegrown advertising agency.
It is also its most aggressive, and a source close to the negotiations said it would force rival Mill Road Capital to either raise its own C$131.5 million bid, or back down from the takeover battle.
Cossette is small by international standards -- ranked about 23rd globally -- but is a giant in Canada, where it grew from a tiny shop in the early 1970s to a transnational firm with clients including McDonald's (MCD.N) Restaurants of Canada, Bell Canada (BCE_pe.TO), General Motors of Canada and Coca-Cola Ltd (KO.N).
Cossette's allure includes a strong presence in Canada's French-speaking province Quebec, a difficult market to crack for foreign companies, as well as assets in Britain, where it set up in 2003.
Cosmos, advised by Genuity Capital Markets, controls 18.7 percent of Cossette. It also has lock-up agreements with Bergundy Asset Management, which holds 11.1 percent, and Beutel Goodman & Co, with 7.6 percent of the shares.
"By matching, Cosmos has secured those and what that means is that the Mill Road transaction can't go forward," the source said, because the Mill Road offer would need support of two-thirds of the shares to go forward.
The source said the decision to match, and not exceed, the Mill Road offer was based on the need to secure the lock-up agreements.
Cossette could not be reached for immediate comment.
Like Mill Road's Nov. 10 bid, Cosmos offered C$7.87 per share, all cash, for each of the approximately 16.7 million issued and outstanding subordinate voting shares of Cossette.
The offer was fully financed, but it was conditional to due diligence and to receiving access to Cossette's virtual data room after it was barred from it in July, following its first hostile bid.
The offer on Tuesday bettered a C$5.25 a share, C$88 million, offer by Cosmos in October and a July offer at C$4.95 a share.
D&B, Carlyle named as possible InfoGroup bidders
Reuters news service has reported that Dun & Bradstreet and private equity company Carlyle Group are possible bidders to purchase direct marketing holding company InfoGroup. Reuters cited sources familiar with the negotiations.
Also named as a possible bidder by the news service was interactive marketing services company Acxiom Corp., but on Wednesday Acxiom issued a statement denying it was interested in acquiring InfoGroup.
The Omaha World-Herald reported that InfoGroup was on the block and that at least 33 potential bidders had signed confidentiality agreements to gain access to financial information to prepare offers. Late last year the company hired financial adviser Evercore Partners to help determine future plans.
The company did not deny the report, saying it is “continually evaluating the operations and prospects for the company to determine what course is best for our shareholders.”
http://www.btobonline.com/apps/pbcs.dll/article?AID=/20091111/FREE/911119997/1078/newsletter011
Also named as a possible bidder by the news service was interactive marketing services company Acxiom Corp., but on Wednesday Acxiom issued a statement denying it was interested in acquiring InfoGroup.
The Omaha World-Herald reported that InfoGroup was on the block and that at least 33 potential bidders had signed confidentiality agreements to gain access to financial information to prepare offers. Late last year the company hired financial adviser Evercore Partners to help determine future plans.
The company did not deny the report, saying it is “continually evaluating the operations and prospects for the company to determine what course is best for our shareholders.”
http://www.btobonline.com/apps/pbcs.dll/article?AID=/20091111/FREE/911119997/1078/newsletter011
Leader Enterprises acquires Bottlecap Development
Marketing agency Leader Enterprises announced the acquisition of Bottlecap Development, an Atlanta-based Web development company. Financial terms of the deal were not disclosed.Bottlecap becomes a wholly owned subsidiary of Leader and will continue to operate under the Bottlecap name. Jeremy Morris, founder and president of Bottlecap, was named president of the digital media group at Leader.
http://www.btobonline.com/apps/pbcs.dll/article?AID=/20091118/FREE/911189992/1078/newsletter011
http://www.leaderenterprises.com/leader_bottlecap_press_release.pdf
http://www.btobonline.com/apps/pbcs.dll/article?AID=/20091118/FREE/911189992/1078/newsletter011
http://www.leaderenterprises.com/leader_bottlecap_press_release.pdf
Radio's Q3 Dials Up Slightly
Radio revenue improved slightly in third quarter but was still bouncing along the bottom, according to figures released Friday (Nov. 20) by the Radio Advertising Bureau.
Local and national advertising was down 19 percent to $3.4 billion, compared to a 25 percent drop in third quarter. Year-to-date, radio revenue is down 23 percent to $9.7 billion.
Other radio segments had a better quarter. Network radio was down 11 percent to $253 million.
Off-air revenue was down 9 percent to $335 million. Digital continues to be a bright spot in the radio business, up 14 percent to $126 million.
http://www.mediaweek.com/mw/content_display/news/local-broadcast/e3ied5661580e6e68a1c35ca699ac74456c
Friday, November 13, 2009
AIMS looking for acquisitions
For the next stage of AIMS development through acquisitions, the company is concentrating in the areas of public affairs, digital marketing and public relations. Based on current growth in government affairs expenditures, and on past successes by IKON Public Affairs in campaign and election management and political consulting, AIMS is focused heavily on growing its government, advocacy and political affairs business. IKON is a wholly-owned subsidiary of AIMS.
“Because of our past success in this space and significant ongoing opportunity, we are focusing on growth efforts in the public sector,” said AIMS CEO Gerald Garcia, Jr. “We also see growth opportunities in the commercial sector, with emphasis on digital marketing and public relations. The combination of our public and commercial sector M&A initiatives will be critical to our long-term business development, growth and success. We appreciate the invaluable assistance, counsel and guidance we are receiving from Maxim’s management as we work through the final stages of our next round of acquisitions.”
http://finance.yahoo.com/news/AIMS-Worldwide-Signs-MA-bw-3790560659.html?x=0
“Because of our past success in this space and significant ongoing opportunity, we are focusing on growth efforts in the public sector,” said AIMS CEO Gerald Garcia, Jr. “We also see growth opportunities in the commercial sector, with emphasis on digital marketing and public relations. The combination of our public and commercial sector M&A initiatives will be critical to our long-term business development, growth and success. We appreciate the invaluable assistance, counsel and guidance we are receiving from Maxim’s management as we work through the final stages of our next round of acquisitions.”
http://finance.yahoo.com/news/AIMS-Worldwide-Signs-MA-bw-3790560659.html?x=0
Tuesday, November 10, 2009
The Power of Direct Marketing
http://www.the-dma.org/cgi/dispannouncements?article=1335
As a highlight, 2009 will mark the fifth year in which direct marketing has captured more than half of all advertising spend nationwide. This figure is up to 54.3 percent from last year’s 52.7 percent, and is forecasted to remain above 53 percent for the next five years.
In 2010, total direct marketing ad spending is expected to increase 2.7 percent, yielding $153.3 billion overall.Although the direct marketing share of total advertising continues to increase, ad budgets of all types suffered in 2009. Due to decreases in corporate profits, consumers economizing, belt tightening by businesses, and limited credit options, direct marketing advertising expenditures are predicted to fall to $149.3 billion in 2009, a decline of 11.2 percent compared to 2008. However, direct marketing is still performing better than general advertising which fell to $125.7 billion, down 14.2 percent from 2008. “Direct marketing is now a bigger slice of an overall smaller marketing pie,” added Wurmser.
Economy Begins Slow and Uneven Recovery, Second Half of 2009 and into 2010
Future economic growth will be slow, but is expected to be positive in the third and fourth quarters of this year.
Direct marketers should expect DM-driven sales revenue to decrease, nearly proportionate to ad spending, by 10.9 percent in 2009, reaching $1,738 billion from an actual $1,951.7 billion in 2008. For 2010, sales generated from direct marketing are forecasted to grow by 3.5 percent to $1,798 billion. Several broad sectors are expected to realize above-average direct marketing sales growth in 2010, including Financial Services, Retail Trade, and Manufacturing, Resources.
FaceTime Strategy acquires CSA
http://www.btobonline.com/apps/pbcs.dll/article?AID=/20091020/FREE/910209983/1078/newsletter011
FaceTime Strategy has acquired Cantele, Sedivy and Associates Advertising (CSA), a Chicago-based advertising and marketing agency.
The acquisition gives FaceTime a third office, joining those here and Dallas. Chris Cantele, co-founder and former president of CSA, will serve as exec VP of FaceTime, and CSA co-founder Mike Sedivy will serve as senior account manager.
Financial terms of the deal were not disclosed.
FaceTime Strategy has acquired Cantele, Sedivy and Associates Advertising (CSA), a Chicago-based advertising and marketing agency.
The acquisition gives FaceTime a third office, joining those here and Dallas. Chris Cantele, co-founder and former president of CSA, will serve as exec VP of FaceTime, and CSA co-founder Mike Sedivy will serve as senior account manager.
Financial terms of the deal were not disclosed.
Promotional product sales off 10.9% in third quarter
The sale of promotional products, such as logoed pens, pads and clothing used as marketing giveaways, fell 10.9% in the third quarter compared with the same period in 2008, according to the Advertising Specialty Institute (ASI).
Third-quarter sales totaled $5.6 billion, down from $6.2 billion in the year-earlier period. The sales decline compares with a 13.9% decline in this year’s second quarter and an 18% drop-off in the first quarter, indicating that the skid in advertising specialty products sales is slowing slightly.
http://www.btobonline.com/apps/pbcs.dll/article?AID=/20091023/FREE/910239996/1078/newsletter011
Responsys to acquire digital agency Smith-Harmon
http://www.btobonline.com/apps/pbcs.dll/article?AID=/20091030/FREE/910309987/1078/newsletter011
E-mail marketing company Responsys Inc., aiming to upgrade its integrated marketing and creative services capabilities, announced it plans to acquire digital agency Smith-Harmon Inc.
Responsys plans to integrate Seattle-based Smith-Harmon's strategic planning and creative design abilities—and specifically its e-mail-embedded video and social media expertise—into its own cross-channel marketing solutions and services.
Responsys said the Smith-Harmon brand would remain intact in the near term. Financial terms of the deal were not disclosed.
E-mail marketing company Responsys Inc., aiming to upgrade its integrated marketing and creative services capabilities, announced it plans to acquire digital agency Smith-Harmon Inc.
Responsys plans to integrate Seattle-based Smith-Harmon's strategic planning and creative design abilities—and specifically its e-mail-embedded video and social media expertise—into its own cross-channel marketing solutions and services.
Responsys said the Smith-Harmon brand would remain intact in the near term. Financial terms of the deal were not disclosed.
Sorrell: ‘Winnowing out' of media must continue
The contraction of the magazine and newspaper industry not only will continue but is essential, said Sir Martin Sorrell, CEO of ad agency conglomerate WPP Group, in a keynote address delivered Wednesday at the Ad:Tech expo and conference in New York.
“All we see are newspapers and magazine titles dropping like flies, and that has to continue,” Sorrell said. “There has to be a winnowing out and consolidation.”
Sorrell said new media is essentially a one-to-one experience. The solution for publishers is to offer content for sale to those who are willing to pay for it, he said.
http://www.btobonline.com/apps/pbcs.dll/article?AID=/20091106/MEDIABUSINESS/911069992/1078/newsletter011
UBM outlook remains stable as company looks for acquisitions
http://www.btobonline.com/apps/pbcs.dll/article?AID=/20091106/MEDIABUSINESS/911069994/1078/newsletter011
The company has spent about $30 million on acquisitions this year and remains on the lookout out for further opportunities.
“The focus of our acquisition efforts remains on trade shows and IP-based data and service businesses, and on opportunities in emerging markets, particularly in China, India and Brazil,” the statement said.
The company has spent about $30 million on acquisitions this year and remains on the lookout out for further opportunities.
“The focus of our acquisition efforts remains on trade shows and IP-based data and service businesses, and on opportunities in emerging markets, particularly in China, India and Brazil,” the statement said.
Upshot Buys Emerge Digital
Emerge Digital brings expertise in web design, online promotions, social media, mobile phone marketing and branded interactive games and an interactive punch to Upshot's existing services, including brand, promotion, retail and regional marketing.
“Interactive is an increasingly important piece of the integrated marketing mix today,” Brian Kristofek, Upshot’s president and CEO said in a release.
Emerge Digitals roster of clients includes, Consumer Reports, Cirque Du Soleil, HBO, Harpo, Visa, and Luxor.
Upshot clients include Procter & Gamble, Kraft, Crown Imports, Wild Turkey, Tremor and Kerasotes to name a few. Upshot is a division of EMAK Worldwide.
http://promomagazine.com/interactivemarketing/news/1103-upshot-buys-emerge-digital/
InfoGroup sale is topic of report, company response
http://www.btobonline.com/apps/pbcs.dll/article?AID=/20091102/FREE/911029989/1078/newsletter011
Database marketing conglomerate InfoGroup Inc., which the Omaha World-Herald reported to be on the sales block, has responded by saying it is “continually evaluating the operations and prospects for the company to determine what course is best for our shareholders.”
On Saturday the World-Herald reported that at least 33 potential bidders had signed confidentiality agreements to gain access to financial information about InfoGroup in order to prepare offers. Late last year the company hired financial adviser Evercore Partners to help determine future plans.
“We have several options before us, which includes continuing to operate the company as an independent organization,” said company Chairman Roger Siboni, in a statement. “Whichever course we follow will be determined by what optimizes value for all our shareholders.”
In its most recent earnings report, InfoGroup posted second-quarter revenue of $121.6 million, down from $187.2 million in the year-earlier quarter. The company reported a net loss of $1.3 million for the quarter, compared with a profit of $4.3 million for the year-earlier period.
Database marketing conglomerate InfoGroup Inc., which the Omaha World-Herald reported to be on the sales block, has responded by saying it is “continually evaluating the operations and prospects for the company to determine what course is best for our shareholders.”
On Saturday the World-Herald reported that at least 33 potential bidders had signed confidentiality agreements to gain access to financial information about InfoGroup in order to prepare offers. Late last year the company hired financial adviser Evercore Partners to help determine future plans.
“We have several options before us, which includes continuing to operate the company as an independent organization,” said company Chairman Roger Siboni, in a statement. “Whichever course we follow will be determined by what optimizes value for all our shareholders.”
In its most recent earnings report, InfoGroup posted second-quarter revenue of $121.6 million, down from $187.2 million in the year-earlier quarter. The company reported a net loss of $1.3 million for the quarter, compared with a profit of $4.3 million for the year-earlier period.
Cliff Freeman Slips Into History Books
http://adage.com/abstract.php?article_id=140123
Agency Behind Classic Wendy's Ad and 'Pizza, Pizza' Shutters After 22-Year Run
Agency Behind Classic Wendy's Ad and 'Pizza, Pizza' Shutters After 22-Year Run
Despite Downturn, Bold Moves and New Techniques
http://www.nytimes.com/2009/10/29/business/media/29adco.html?_r=1&ref=media
Among the signs of improvement, or at least a bottoming out, are reports in trade publications like Advertising Age that demand for commercial time on television networks is increasing, even if slightly.
And Maurice Lévy, chief executive at another giant agency company, the Publicis Groupe, predicted on Tuesday that “the advertising market is starting its recovery” and Publicis would begin to see organic revenue growth in the second half of 2010.
In another indication that the worst may be in the rear-view mirror, some well-known executives are taking the risk of opening agencies at a time when many established shops are struggling. One new agency, called Victors and Spoils, is being started by partners who include two former senior managers at Crispin Porter & Bogusky, owned by MDC Partners.
Another is in the form of a New York office for a British agency, Beattie McGuinness Bungay, which is expanding outside London for the first time. The office, staffed with Americans, has its first client, Samsung.
Among the signs of improvement, or at least a bottoming out, are reports in trade publications like Advertising Age that demand for commercial time on television networks is increasing, even if slightly.
And Maurice Lévy, chief executive at another giant agency company, the Publicis Groupe, predicted on Tuesday that “the advertising market is starting its recovery” and Publicis would begin to see organic revenue growth in the second half of 2010.
In another indication that the worst may be in the rear-view mirror, some well-known executives are taking the risk of opening agencies at a time when many established shops are struggling. One new agency, called Victors and Spoils, is being started by partners who include two former senior managers at Crispin Porter & Bogusky, owned by MDC Partners.
Another is in the form of a New York office for a British agency, Beattie McGuinness Bungay, which is expanding outside London for the first time. The office, staffed with Americans, has its first client, Samsung.
Publicis Reports 'Most Terrible' Results, Claims It Is Becoming An 'All-Digital Agency'
Paris-based Publicis Groupe, which currently boasts that 25% of its revenues are derived from digital advertising and media services, ultimately plans to become an "all-digital agency," its Chairman-CEO Maurice Levy said in an interview following the release of its third quarter earnings this morning. http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=116156
Addressing why Publicis appears to be out-performing the results of the other major agency holding companies during the global economic recession, Levy said, "Obviously we have invested a lot in transforming Publicis into an all-digital agency and this is starting to pay. We have very good numbers for growth in digital. And this is something which is offsetting the decrease of some other activities."
"We have no plans to make further large acquisitions. We have plenty of plans to make small acquisitions in two areas. One is everything which has to do with emerging markets. In emerging markets we are interested by agencies, advertising agencies, PR agencies, marketing services, digital - obviously - or media. And we are still interested across the board by digital operations. These acquisitions are very hard to find ; there are not many, and they are not very costly.
Addressing why Publicis appears to be out-performing the results of the other major agency holding companies during the global economic recession, Levy said, "Obviously we have invested a lot in transforming Publicis into an all-digital agency and this is starting to pay. We have very good numbers for growth in digital. And this is something which is offsetting the decrease of some other activities."
"We have no plans to make further large acquisitions. We have plenty of plans to make small acquisitions in two areas. One is everything which has to do with emerging markets. In emerging markets we are interested by agencies, advertising agencies, PR agencies, marketing services, digital - obviously - or media. And we are still interested across the board by digital operations. These acquisitions are very hard to find ; there are not many, and they are not very costly.
Google Acquires AdMob to Bolster Mobile-Display Business
http://adage.com/digital/article?article_id=140397
http://www.nytimes.com/2009/11/10/technology/companies/10google.html?ref=technology
Deal Called a 'Catalyst' That Could Kick off Consolidation in Ad Sector
In a bid to bolster its toehold in mobile-display advertising, Google is acquiring mobile-advertising network AdMob for $750 million in stock, sparking what could be the beginning of a major consolidation in the mobile-display advertising sector.
Google's strategy to buy rather than build was an admission that it needed outside expertise in display advertising, as it seeks to shore up its brand-building capabilities, creating a parallel mobile marketplace to its recently relaunched DoubleClick display-ad exchange.
"Google's display capabilities were quite weak by comparison to AdMob," said mobile analyst Greg Sterling. "This fills in a missing piece in their mobile strategy and accelerates Google to a leadership position in mobile-display advertising to complement search."
http://www.theglobeandmail.com/globe-investor/google-to-buy-mobile-ad-network/article1356728/
AdMob was founded by Omar Hamoui in 2006 while he was still a graduate student at the Wharton School at the University of Pennsylvania. The company is one of a few mobile advertising start-ups that analysts say have outsmarted the giants of Web advertising and established themselves as leaders in the emerging business. Analysts said that the others, which include JumpTap, Millennial Media and Quattro Wireless, are likely to draw the interest of Google rivals like Microsoft and Yahoo.
AdMob has received $47 million in financing from Sequoia Capital, Accel Partners and other investors and has about 140 employees.
http://www.nytimes.com/2009/11/10/technology/companies/10google.html?ref=technology
Deal Called a 'Catalyst' That Could Kick off Consolidation in Ad Sector
In a bid to bolster its toehold in mobile-display advertising, Google is acquiring mobile-advertising network AdMob for $750 million in stock, sparking what could be the beginning of a major consolidation in the mobile-display advertising sector.
Google's strategy to buy rather than build was an admission that it needed outside expertise in display advertising, as it seeks to shore up its brand-building capabilities, creating a parallel mobile marketplace to its recently relaunched DoubleClick display-ad exchange.
"Google's display capabilities were quite weak by comparison to AdMob," said mobile analyst Greg Sterling. "This fills in a missing piece in their mobile strategy and accelerates Google to a leadership position in mobile-display advertising to complement search."
http://www.theglobeandmail.com/globe-investor/google-to-buy-mobile-ad-network/article1356728/
AdMob was founded by Omar Hamoui in 2006 while he was still a graduate student at the Wharton School at the University of Pennsylvania. The company is one of a few mobile advertising start-ups that analysts say have outsmarted the giants of Web advertising and established themselves as leaders in the emerging business. Analysts said that the others, which include JumpTap, Millennial Media and Quattro Wireless, are likely to draw the interest of Google rivals like Microsoft and Yahoo.
AdMob has received $47 million in financing from Sequoia Capital, Accel Partners and other investors and has about 140 employees.
Carlson Marketing Sold to Groupe Aeroplan for $175 Million
Minneapolis marketing-services giant Carlson Marketing has been sold to Montreal-based Groupe Aeroplan, merging the two top global companies in the loyalty-marketing category.
Groupe Aeroplan paid $175.3 million for Carlson, which ranked as the No. 15 agency company in the world, with an estimated $367 million in revenue ($265 million inside the U.S.) in Ad Age's 2008 Agency Report.
http://adage.com/agencynews/article?article_id=140167Carlson Marketing, which grew out of the hospitality and restaurant behemoth Carlson Cos., has expanded beyond its hospitality roots in recent years as companies have become more interested in running loyalty programs in pursuit of one-to-one consumer marketing. It has worked with the likes of Coca-Cola, Procter & Gamble, Sun Microsystems, Amtrak and AT&T in addition to 12 airlines (including Northwest Delta) and 52 financial institutions (including American Express).
Carlson Marketing's growth has been fueled, in part, by astounding success in client retention: Its top 10 clients have been with the agency for an average of 14.7 years. Carlson executives candidly attribute part of that "stickiness" to the complexity of untangling its clients from the various database systems the company offers.
But now it seems to be returning to its data roots. Carlson Cos. CEO Hubert Joly said the divestiture would allow the company to invest more resources in its travel, restaurant and hotel businesses. Carlson, one of the largest private firms in the U.S., owns the Radisson and Regent hotel chains, owns and operates more than 1,000 restaurants under the TGIFriday's and Pick Up Stix brands and owns most of the Carlson Wagonlit Travel business-travel management group. Physically, Carlson Marketing is already somewhat separate from the other units, as it is located in a hangar-like space more than a mile removed from the company's sprawling campus and towers on a former horse farm on the outskirts of Minneapolis.
According to the announcement, Groupe Aeroplan intends to keep Carlson's senior management, led by CEO Jeff Balagna, in place and allow the company to continue operating independently. Carlson Marketing is expected to contribute roughly $560 million in marketing fees to Aeroplan in 2010, with EBITDA margins of 6% to 8%.
BBDO Prepares to Shut Detroit Office
BBDO said it is preparing to close its Detroit office, as the Omnicom Group ad agency's contract with Chrysler Group, one of its biggest accounts, expires in January.
It said the closure would eliminate 485 jobs, including some at other offices http://online.wsj.com/article/SB10001424052748703808904574525981338098004.html?ru=yahoo&mod=yahoo_hs
http://adage.com/agencynews/article?article_id=140392
Back in 2000, when BBDO emerged the big winner in Chrysler's agency consolidation, the account was estimated to be worth $2.4 billion, and the agency's Detroit office -- exclusively devoted to serving the Dodge, Jeep and Chrysler brands -- numbered some 2,000 staffers. In 2009, amidst squeezed fees and contracted scope of work, the Chrysler account today is worth less than half that in billings, and staff at BBDO Detroit has dwindled to less than 500.
It said the closure would eliminate 485 jobs, including some at other offices http://online.wsj.com/article/SB10001424052748703808904574525981338098004.html?ru=yahoo&mod=yahoo_hs
http://adage.com/agencynews/article?article_id=140392
Back in 2000, when BBDO emerged the big winner in Chrysler's agency consolidation, the account was estimated to be worth $2.4 billion, and the agency's Detroit office -- exclusively devoted to serving the Dodge, Jeep and Chrysler brands -- numbered some 2,000 staffers. In 2009, amidst squeezed fees and contracted scope of work, the Chrysler account today is worth less than half that in billings, and staff at BBDO Detroit has dwindled to less than 500.
Mill Road Capital to Privatize Cossette in Partnership with Management
http://finance.yahoo.com/news/UPDATE-In-a-transaction-at-cnw-68221603.html?x=0&.v=2
Under the terms of the Agreement, Mill Road will acquire all of the issued and outstanding subordinate voting shares of the Company (the "Shares") for a consideration of $7.87 per share in cash, other than the shares of Senior Management Shareholders (as defined below). The transaction is not conditional on financing or due diligence.
The all-cash consideration of $7.87 per Share represents a premium of approximately 40% to the volume-weighted average trading price of the Shares for the past 20 trading days, 50% over Cosmos Capital Inc.'s ("Cosmos") offer price of $5.25 per Share of October 30, 2009 and 142% over the unaffected share price of $3.25 on July 17, 2009, the last trading day prior to Cosmos announcing its unsolicited and non-binding proposal to acquire all outstanding Shares at a price of $4.95 per Share on July 20, 2009.
"We are very pleased with this transaction for many reasons: it better reflects Cossette's true value and exemplifies our commitment to maximize value for all our shareholders," commented Claude Lessard, Cossette's Chairman of the Board, Chief Executive Officer and President. "Furthermore, it is occurring with a strategic partner that has already proven its respect for our organization, our brand and our people, and it ensures total continuity with our trusted clients who have supported us throughout this process. This transaction is fully supported by the senior management team."
Thomas Lynch, Senior Managing Director of Mill Road added, "Cossette is an outstanding brand in the communications sector and a great company. We are very pleased to partner with the management team who has our full support in deploying their strategic plan."
As a private company, Cossette will continue to be led by Claude Lessard and his current senior management team, and maintain its focus on providing best-in-class marketing and communications services to its global roster of clients.
Under the terms of the Agreement, Mill Road will acquire all of the issued and outstanding subordinate voting shares of the Company (the "Shares") for a consideration of $7.87 per share in cash, other than the shares of Senior Management Shareholders (as defined below). The transaction is not conditional on financing or due diligence.
The all-cash consideration of $7.87 per Share represents a premium of approximately 40% to the volume-weighted average trading price of the Shares for the past 20 trading days, 50% over Cosmos Capital Inc.'s ("Cosmos") offer price of $5.25 per Share of October 30, 2009 and 142% over the unaffected share price of $3.25 on July 17, 2009, the last trading day prior to Cosmos announcing its unsolicited and non-binding proposal to acquire all outstanding Shares at a price of $4.95 per Share on July 20, 2009.
"We are very pleased with this transaction for many reasons: it better reflects Cossette's true value and exemplifies our commitment to maximize value for all our shareholders," commented Claude Lessard, Cossette's Chairman of the Board, Chief Executive Officer and President. "Furthermore, it is occurring with a strategic partner that has already proven its respect for our organization, our brand and our people, and it ensures total continuity with our trusted clients who have supported us throughout this process. This transaction is fully supported by the senior management team."
Thomas Lynch, Senior Managing Director of Mill Road added, "Cossette is an outstanding brand in the communications sector and a great company. We are very pleased to partner with the management team who has our full support in deploying their strategic plan."
As a private company, Cossette will continue to be led by Claude Lessard and his current senior management team, and maintain its focus on providing best-in-class marketing and communications services to its global roster of clients.
Friday, November 6, 2009
GMA Study: Shopper Marketing Still Siloed
http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=116719
Shopper marketing continues to grow in importance for CPGs and retailers, but its effectiveness is being limited by insufficient integration with out-of-store marketing and media channels, according to a new study from the Grocery Manufacturers Association, Booz & Company and SheSpeaks.
"Shopper Marketing 3.0" involved a comprehensive survey of 3,600 shoppers across the food and beverage, household products, and health and beauty categories, and across multiple retail formats. In addition to filling out pre- and post-shopping surveys, shoppers participated in online forums.
The researchers also interviewed 25 senior executives from leading shopper marketing agencies, CPG manufacturers across categories, retailers across formats, measurement and analytics firms, and in-store media service providers.
Overall investment in shopper marketing -- defined by the Marketing Leadership Council as in-store advertising, promotion and design initiatives intended to extend brand equity and provide the retailer with differentiation -- is estimated to be growing at 21% annually, according to hardknoxlife.com.
Shopper marketing continues to grow in importance for CPGs and retailers, but its effectiveness is being limited by insufficient integration with out-of-store marketing and media channels, according to a new study from the Grocery Manufacturers Association, Booz & Company and SheSpeaks.
"Shopper Marketing 3.0" involved a comprehensive survey of 3,600 shoppers across the food and beverage, household products, and health and beauty categories, and across multiple retail formats. In addition to filling out pre- and post-shopping surveys, shoppers participated in online forums.
The researchers also interviewed 25 senior executives from leading shopper marketing agencies, CPG manufacturers across categories, retailers across formats, measurement and analytics firms, and in-store media service providers.
Overall investment in shopper marketing -- defined by the Marketing Leadership Council as in-store advertising, promotion and design initiatives intended to extend brand equity and provide the retailer with differentiation -- is estimated to be growing at 21% annually, according to hardknoxlife.com.
The Top 10 Advertising Agencies in Canada
The list:
BleuBlancRouge, which boasted two interesting campaigns this year. One was a program for Quebec Toyota dealers that urged consumers to keep buying cars but to drive them less. Another tried to make Montreal a hotbed for test marketing.
John St., Marketing's 2008 Agency of the Year.
Juniper Park, recent winner of $110 million worth of Quaker Foods business at the expense of
Omnicom Group sibling Goodby Silverstein & Partners.
Mosaic, the experiential marketing outfit profiled here.
Sid Lee, handler of Adidas Originals account on a global basis. Read Creativity Editor Teressa Iezzi's take on them here.
Starcom MediaVest Group, the oft-awarded local operation of Publicis Groupe-owned media planning and buying network.
TBWA/Vancouver, the local office of the Omnicom creative network. It takes sustainability seriously.
Taxi. Home base for the burgeoning micronetwork, now in New York and Amsterdam.
The Hive, a Toronto shop that recently won responsibilities for Miller Genuine Draft in Quebec.
Twist Image, a Montreal-headquartered digital agency that works for the likes of Pfizer and Coca-Cola.
http://www.marketingmag.ca/english/news/agency/article.jsp?content=20091102_144715_8524
Survey: Agencies Are Ready To Spend
http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=116798
Mobile ad budgets are headed up next year, according to a new study. Nearly one-third (31%) of ad agencies expect to spend between $100,000 and $250,000 on mobile advertising in 2010, compared to 22% a year ago.
Almost 13% plan to spend $250,000 to $500,000, up from 4% in 2009, and more than 15% will earmark more than $1 million for mobile campaigns, compared to 11% a year earlier. Nearly a quarter (23%) are budgeting less than $100,000 for mobile and 10% don't know how much they'll spend on mobile.
The study also found 60% of non-mobile marketers plan to buy mobile advertising in 2010.
The findings are based on a September DM2Events.com survey of 100 agencies by mobile ad network Millennial Media and DM2Events.com. They're not exactly disinterested parties, so take the results for whatever their worth.
Mobile ad budgets are headed up next year, according to a new study. Nearly one-third (31%) of ad agencies expect to spend between $100,000 and $250,000 on mobile advertising in 2010, compared to 22% a year ago.
Almost 13% plan to spend $250,000 to $500,000, up from 4% in 2009, and more than 15% will earmark more than $1 million for mobile campaigns, compared to 11% a year earlier. Nearly a quarter (23%) are budgeting less than $100,000 for mobile and 10% don't know how much they'll spend on mobile.
The study also found 60% of non-mobile marketers plan to buy mobile advertising in 2010.
The findings are based on a September DM2Events.com survey of 100 agencies by mobile ad network Millennial Media and DM2Events.com. They're not exactly disinterested parties, so take the results for whatever their worth.
WPP CEO Offers Outlook on Advertising's Future
http://www.clickz.com/3635572
WPP Chief Executive Martin Sorrell identified three areas where the company is placing its bets for growth in coming years: a geographic shift in power, the rise in new media, and an increased focus on marketing information and insights.
"There's a shift in power, which I still don't think we fully understand here standing in New York, from the West to the East -- and modify that to the South," said Sorrell, keynote speaker at ad:tech New York, referring to China and India in the East and Latin America in the South. "Every single client we deal with is focusing on these parts of the world for growth."
Sorrell said he also expects online marketing budgets to catch up with consumer use of new media. Currently, clients spend about 12 percent of their marketing budgets online, he said. Yet consumers spend 20 to 28 percent of their time online.
Why isn't more money invested in online marketing? It's generational, he said. "People who run media agencies tend to be an older vintage. They tend to be resistant to change," he said. Executives approaching retirement age don't want to spend the last three or four years of their careers dealing with massive change, he said.
A third area of growth, he predicted, involves marketing information services. With that in mind, WPP last year acquired TNS.
WPP Chief Executive Martin Sorrell identified three areas where the company is placing its bets for growth in coming years: a geographic shift in power, the rise in new media, and an increased focus on marketing information and insights.
"There's a shift in power, which I still don't think we fully understand here standing in New York, from the West to the East -- and modify that to the South," said Sorrell, keynote speaker at ad:tech New York, referring to China and India in the East and Latin America in the South. "Every single client we deal with is focusing on these parts of the world for growth."
Sorrell said he also expects online marketing budgets to catch up with consumer use of new media. Currently, clients spend about 12 percent of their marketing budgets online, he said. Yet consumers spend 20 to 28 percent of their time online.
Why isn't more money invested in online marketing? It's generational, he said. "People who run media agencies tend to be an older vintage. They tend to be resistant to change," he said. Executives approaching retirement age don't want to spend the last three or four years of their careers dealing with massive change, he said.
A third area of growth, he predicted, involves marketing information services. With that in mind, WPP last year acquired TNS.
After a Brutal Year, Marketers Regroup to Share War Stories and Ideas
http://www.nytimes.com/2009/11/06/business/media/06adco.html?_r=1&ref=business
Devoting the agenda of the conference to “defying the recession” helped draw attendees, he added, which will be underlined by the introduction of what Mr. Liodice is calling a “marketers’ constitution.”
The document is composed of 10 “essential ‘musts’ of marketing,” Mr. Liodice said. He plans to describe them in a speech on Friday.
•
Those core principles, as outlined in an advance copy of his speech, include making marketing more “targeted, focused and personal,” insuring it can “build real, tangible and enduring brand value,” encouraging workplace diversity and social responsibility, and intensifying efforts to be “more creative, insightful and accountable.”
To those ends, Mr. Liodice will announce steps like the association’s first conference on creativity, probably in the second half of next year, and a study intended to demonstrate what he called the “immense economic contribution” made by marketing.
And Mr. Liodice said he would ask attendees to sign copies of the constitution, which will also be made available at other industry events and on the association’s Web site, ana.net.
Devoting the agenda of the conference to “defying the recession” helped draw attendees, he added, which will be underlined by the introduction of what Mr. Liodice is calling a “marketers’ constitution.”
The document is composed of 10 “essential ‘musts’ of marketing,” Mr. Liodice said. He plans to describe them in a speech on Friday.
•
Those core principles, as outlined in an advance copy of his speech, include making marketing more “targeted, focused and personal,” insuring it can “build real, tangible and enduring brand value,” encouraging workplace diversity and social responsibility, and intensifying efforts to be “more creative, insightful and accountable.”
To those ends, Mr. Liodice will announce steps like the association’s first conference on creativity, probably in the second half of next year, and a study intended to demonstrate what he called the “immense economic contribution” made by marketing.
And Mr. Liodice said he would ask attendees to sign copies of the constitution, which will also be made available at other industry events and on the association’s Web site, ana.net.
Friday, October 23, 2009
Equifax to Acquire IXI Corporation
http://www.reuters.com/article/pressRelease/idUS132122+21-Oct-2009+PRN20091021
http://www.ixicorp.com/PDFs/Equifax-to-Acquire-IXI-Corporation.pdf
Equifax Inc. (NYSE: EFX) announcedtoday it has reached a definitive agreement to acquire IXI Corporation, aleader in collecting, analyzing and delivering consumer wealth and asset data. Equifax will pay $124 million in cash for the company.
IXI's data, sourced through more than 95 leading banks, brokerage firms andother financial entities, is the most comprehensive database of invested anddeposited consumer wealth in the country. IXI directly measures data on morethan $10 trillion in U.S. consumer assets and investments, representing morethan 42 percent of all U.S. consumer invested assets.
Covenant Partners, a hedge fund, was investor in IXI. http://people.forbes.com/profile/john-harrison/39863
http://www.ixicorp.com/PDFs/Equifax-to-Acquire-IXI-Corporation.pdf
Equifax Inc. (NYSE: EFX) announcedtoday it has reached a definitive agreement to acquire IXI Corporation, aleader in collecting, analyzing and delivering consumer wealth and asset data. Equifax will pay $124 million in cash for the company.
IXI's data, sourced through more than 95 leading banks, brokerage firms andother financial entities, is the most comprehensive database of invested anddeposited consumer wealth in the country. IXI directly measures data on morethan $10 trillion in U.S. consumer assets and investments, representing morethan 42 percent of all U.S. consumer invested assets.
Covenant Partners, a hedge fund, was investor in IXI. http://people.forbes.com/profile/john-harrison/39863
Tuesday, October 20, 2009
Mike Sifton and Joe Prosperi join Beringer Capital
Perry Miele, Chairman of Beringer Capital, a Toronto-based investment and financial advisory firm, is pleased to announce that Michael Sifton and Josef Prosperi have joined Beringer as Managing Partners.
Beringer Capital is focused on the marketing services, communications and specialty media sectors in North America. The firm has made a number of private equity investments in this space and provides mergers and acquisitions and advisory services to leading marketing services and media companies.
Mr. Miele said the addition of Mr. Sifton and Mr. Prosperi to the Beringer team is the first step in a significant expansion of the firm’s investment activities. "We believe there are attractive investment opportunities in our sector of the industry in North America.
"Mike and Joe bring skills and experience that further enhance our own expertise and track record of success and give us access to more and larger opportunities. Both are seasoned executives who know how to work with senior management to develop and implement aggressive growth strategies. This is a core element of our investment strategy at Beringer."
Mr. Sifton has had a distinguished 20-year career in the newspaper publishing business. He was President & CEO of family-owned Armadale Communications from 1988 to 1996. From 1996 to 2001 he held various positions, including President, at Hollinger Canadian Newspapers. Most recently he was President & CEO of Osprey Media from its formation in 2001 until August 2007 when it was acquired by Sun Media. He was appointed President & CEO of Sun Media, a position he held until November 2008. At Osprey and Sun Media Mr. Sifton led transformational change that created operational efficiencies and competitive advantage.
Mr. Prosperi has over 10 years of investment experience in the North American media and consumer products sectors. Most recently he was a Director at Teachers’ Private Capital, the private equity division of the Ontario Teachers’ Pension Plan Board. During his time at Teachers’, the private equity group grew significantly to become one of the largest and most highly regarded private equity teams in North America.
Mr. Prosperi has worked closely with the management teams of both private and public companies and has deep experience in due diligence and all aspects of deal negotiations. He has served on the boards of a number of companies, including Osprey Media Income Fund, CTVglobemedia, SERTA Inc., and General Nutrition Centers.
Beringer’s estimates show that spending on advertising and marketing services in the United States reached approximately $820 billion in 2007, with Canada estimated to be another $40 - 50 billion.
Growth in the industry has been generated from sectors outside traditional advertising, Mr. Sifton said. "Newspapers and other traditional media have experienced a general decline in advertising as marketers include other forms of communication such as retail promotions and digital marketing to effectively reach their customers.
"Beringer recognized this trend some years ago and is now regarded as one of the leading marketing communications advisory and investment firms in North America. It is the only firm in Canada committed to this segment of the market and has developed a solid reputation both in Canada and the U.S. I’m excited to have an opportunity to work with Perry and his team to identify new investment opportunities where we can use the full range of our resources and experience to create added value."
Mr. Prosperi said Beringer has proven its expertise in investing in the marketing services sector. "They have a demonstrated track record of success, earning outstanding returns and developing an increasingly deep understanding of the sector. Their impressive knowledge base and range of contacts in the business throughout North America generate steady advisory work and deal flow. I believe Beringer is ideally placed to take advantage of the predicted growth in this market."
About Beringer Capital
Beringer Capital www.beringercapital.com is a leading independent investment and financial advisory firm based in Toronto, Canada, that focuses on the marketing services, communications and specialty media industry in North America. Beringer has made a number of private equity investments in the sector and also provides mergers and acquisitions and other advisory services to leading marketing services and media companies.
http://www.theglobeandmail.com/blogs/streetwise/beringer-capital-turns-to-news-veteran/article1329043/
http://www.financialpost.com/story.html?id=2121785
http://www.thestar.com/business/article/712664--beringer-hires-media-specialists
http://www.marketingmag.ca/english/news/media/article.jsp?content=20091019_171227_5336
Beringer Capital is focused on the marketing services, communications and specialty media sectors in North America. The firm has made a number of private equity investments in this space and provides mergers and acquisitions and advisory services to leading marketing services and media companies.
Mr. Miele said the addition of Mr. Sifton and Mr. Prosperi to the Beringer team is the first step in a significant expansion of the firm’s investment activities. "We believe there are attractive investment opportunities in our sector of the industry in North America.
"Mike and Joe bring skills and experience that further enhance our own expertise and track record of success and give us access to more and larger opportunities. Both are seasoned executives who know how to work with senior management to develop and implement aggressive growth strategies. This is a core element of our investment strategy at Beringer."
Mr. Sifton has had a distinguished 20-year career in the newspaper publishing business. He was President & CEO of family-owned Armadale Communications from 1988 to 1996. From 1996 to 2001 he held various positions, including President, at Hollinger Canadian Newspapers. Most recently he was President & CEO of Osprey Media from its formation in 2001 until August 2007 when it was acquired by Sun Media. He was appointed President & CEO of Sun Media, a position he held until November 2008. At Osprey and Sun Media Mr. Sifton led transformational change that created operational efficiencies and competitive advantage.
Mr. Prosperi has over 10 years of investment experience in the North American media and consumer products sectors. Most recently he was a Director at Teachers’ Private Capital, the private equity division of the Ontario Teachers’ Pension Plan Board. During his time at Teachers’, the private equity group grew significantly to become one of the largest and most highly regarded private equity teams in North America.
Mr. Prosperi has worked closely with the management teams of both private and public companies and has deep experience in due diligence and all aspects of deal negotiations. He has served on the boards of a number of companies, including Osprey Media Income Fund, CTVglobemedia, SERTA Inc., and General Nutrition Centers.
Beringer’s estimates show that spending on advertising and marketing services in the United States reached approximately $820 billion in 2007, with Canada estimated to be another $40 - 50 billion.
Growth in the industry has been generated from sectors outside traditional advertising, Mr. Sifton said. "Newspapers and other traditional media have experienced a general decline in advertising as marketers include other forms of communication such as retail promotions and digital marketing to effectively reach their customers.
"Beringer recognized this trend some years ago and is now regarded as one of the leading marketing communications advisory and investment firms in North America. It is the only firm in Canada committed to this segment of the market and has developed a solid reputation both in Canada and the U.S. I’m excited to have an opportunity to work with Perry and his team to identify new investment opportunities where we can use the full range of our resources and experience to create added value."
Mr. Prosperi said Beringer has proven its expertise in investing in the marketing services sector. "They have a demonstrated track record of success, earning outstanding returns and developing an increasingly deep understanding of the sector. Their impressive knowledge base and range of contacts in the business throughout North America generate steady advisory work and deal flow. I believe Beringer is ideally placed to take advantage of the predicted growth in this market."
About Beringer Capital
Beringer Capital www.beringercapital.com is a leading independent investment and financial advisory firm based in Toronto, Canada, that focuses on the marketing services, communications and specialty media industry in North America. Beringer has made a number of private equity investments in the sector and also provides mergers and acquisitions and other advisory services to leading marketing services and media companies.
http://www.theglobeandmail.com/blogs/streetwise/beringer-capital-turns-to-news-veteran/article1329043/
http://www.financialpost.com/story.html?id=2121785
http://www.thestar.com/business/article/712664--beringer-hires-media-specialists
http://www.marketingmag.ca/english/news/media/article.jsp?content=20091019_171227_5336
Monday, October 19, 2009
Tentative Hopes Raised for Upturn by Google, Gap, Zenith Spending Forecast
http://adage.com/mediaworks/article?article_id=139760
Now, today comes a report from ZenithOptimedia that global ad spending should increase 0.5% in 2010. Meager, yes, but after so much sputtering of ad spending and cost cutting at media companies, that tiny blip is being taken as cause for relief.
But don't be too relieved: That 0.5% is actually down from last July's forecast when ZenithOptimedia projected ad-spending growth of 1.6% next year. And it has revised downwards its forecast for '09 spending to fall 9.9% rather than 8.5%, so conditions at best remain fragile.
Now, today comes a report from ZenithOptimedia that global ad spending should increase 0.5% in 2010. Meager, yes, but after so much sputtering of ad spending and cost cutting at media companies, that tiny blip is being taken as cause for relief.
But don't be too relieved: That 0.5% is actually down from last July's forecast when ZenithOptimedia projected ad-spending growth of 1.6% next year. And it has revised downwards its forecast for '09 spending to fall 9.9% rather than 8.5%, so conditions at best remain fragile.
Thursday, October 15, 2009
Omnicom's new unit focused on digital dealmaking
http://www.thedeal.com/corporatedealmaker/2009/10/omnicoms_new_division_focused.php
Advertising agency Omnicom Group Inc. (NYSE:OMC) has fallen behind rivals WPP plc (NASDAQ:WPPGY) and Publicis Group SA when it comes to digital acquisitions over the last couple of years. But now Omnicom is trying to catch up, naming Jonathan Nelson as CEO of Omnicom Digital, a newly formed unit that will be responsible for digital acquisitions.
"We haven't been the acquisition machine some of our peers have been," Nelson told Advertising Week. "We're looking at ways to spur organic growth and collaboration." Nelson is not a new face at Omnicom, working closely as a special adviser to CEO Jonathan Wren over the last two years, focusing on the company's digital strategy that includes potential deals as well as ad exchanges and data and analytics work.
Advertising agency Omnicom Group Inc. (NYSE:OMC) has fallen behind rivals WPP plc (NASDAQ:WPPGY) and Publicis Group SA when it comes to digital acquisitions over the last couple of years. But now Omnicom is trying to catch up, naming Jonathan Nelson as CEO of Omnicom Digital, a newly formed unit that will be responsible for digital acquisitions.
"We haven't been the acquisition machine some of our peers have been," Nelson told Advertising Week. "We're looking at ways to spur organic growth and collaboration." Nelson is not a new face at Omnicom, working closely as a special adviser to CEO Jonathan Wren over the last two years, focusing on the company's digital strategy that includes potential deals as well as ad exchanges and data and analytics work.
Monday, September 21, 2009
Newspapers Have Not Hit Bottom, Analysts Say
http://www.nytimes.com/2009/09/21/business/media/21papers.html?_r=1&dbk
With 10 days left in the third quarter, analysts, publishers and ad buyers say that ad revenue will be down about 25 percent industrywide from the third quarter last year, possibly a little less. They predict that the decline will be smaller in the fourth quarter. Several of them say the usual back-to-school uptick in newspaper advertising seems to have been a little better than in most years, if only because July and August were so weak.
Ordinarily, such numbers would be seen as catastrophic, but these times are not ordinary. The drop in combined print and digital ad revenue last year, 16.6 percent, according to the Newspaper Association of America, was the worst since the Depression. But it looks rosy next to 2009, when revenue fell 28.3 percent in the first quarter and 29 percent in the second.
With 10 days left in the third quarter, analysts, publishers and ad buyers say that ad revenue will be down about 25 percent industrywide from the third quarter last year, possibly a little less. They predict that the decline will be smaller in the fourth quarter. Several of them say the usual back-to-school uptick in newspaper advertising seems to have been a little better than in most years, if only because July and August were so weak.
Ordinarily, such numbers would be seen as catastrophic, but these times are not ordinary. The drop in combined print and digital ad revenue last year, 16.6 percent, according to the Newspaper Association of America, was the worst since the Depression. But it looks rosy next to 2009, when revenue fell 28.3 percent in the first quarter and 29 percent in the second.
Friday, September 18, 2009
Four in Five Clients Measure Agency Performance Annually: ANA Survey
http://promomagazine.com/news/ana-survery-results-0915/
A new survey from the Association of National Advertisers finds a hefty majority of advertisers—more than four out of five-- reporting that they regularly evaluate the performance of the advertising agencies retained on their accounts.
Clients are also much less likely to set up regular re-examinations of their multicultural, digital, PR or direct marketing agencies than of their basic creative agency, according to the survey, conducted with the help of the marketing services group Mktg. The poll found that while about 68% of respondents said they have a formal evaluation process in place for their traditional media agencies, only 47% reported the same in regard to their digital marketing agency, and only about 25% said they regularly examined the performance of their direct, PR and multicultural agencies.
A new survey from the Association of National Advertisers finds a hefty majority of advertisers—more than four out of five-- reporting that they regularly evaluate the performance of the advertising agencies retained on their accounts.
Clients are also much less likely to set up regular re-examinations of their multicultural, digital, PR or direct marketing agencies than of their basic creative agency, according to the survey, conducted with the help of the marketing services group Mktg. The poll found that while about 68% of respondents said they have a formal evaluation process in place for their traditional media agencies, only 47% reported the same in regard to their digital marketing agency, and only about 25% said they regularly examined the performance of their direct, PR and multicultural agencies.
Brands Rushing To Social Partly Out of Fear: Study
http://promomagazine.com/news/brand-rushing-fear-0917/
Retailers and brands that sell online are stampeding into social media, a new survey finds—some for fear of looking less modern than their competitors, and others out of concern that they may be getting bad-mouthed without their knowledge.
According to the survey, fielded by multichannel retail consultant The E-tailing Group and consumer review platform PowerReviews, a surprising number of social media tools have achieved wide adoption by brands and retailers in the relatively short time they’ve been available. Eighty-six percent of the brands and merchants who responded to the “Community and Social media Study” poll said they now use a Facebook fan page.
Fifty-five percent each reported using customer reviews on their Web sites and writing or working with blogs, while 50% of those questioned said they have uploaded video content in the hope of sending it viral.
Retailers and brands that sell online are stampeding into social media, a new survey finds—some for fear of looking less modern than their competitors, and others out of concern that they may be getting bad-mouthed without their knowledge.
According to the survey, fielded by multichannel retail consultant The E-tailing Group and consumer review platform PowerReviews, a surprising number of social media tools have achieved wide adoption by brands and retailers in the relatively short time they’ve been available. Eighty-six percent of the brands and merchants who responded to the “Community and Social media Study” poll said they now use a Facebook fan page.
Fifty-five percent each reported using customer reviews on their Web sites and writing or working with blogs, while 50% of those questioned said they have uploaded video content in the hope of sending it viral.
TNS: Ad Spend Falls 14.3% in First Half 2009
http://www.mediaweek.com/mw/content_display/news/media-agencies-research/e3idc28e6611ea5f0a865778565d5c4a9df
Advertising spending fell 14.3 percent to $60.87 billion in the first half of 2009, capping off five consecutive quarters of negative growth, according to data released Wednesday (Sept. 16) from TNS Media Intelligence. The final tally was similar to estimates released two weeks ago by Nielsen Monitor-Plus, which reported total ad spending down 15.4 percent to $56.9 billion. The declines in second quarter differed little from first quarter, leading some to conclude that advertising had hit bottom. But John Swallen, senior vp of research and TNSMI, cautioned that conclusion might be premature.
“While it’s tempting to interpret this as a positive indicator that things aren’t getting worse, the fact remains that the market has been steadily tracking at around 14 percent declines for several consecutive months and this represents billions of lost revenue,” Swallen said.
The numbers could look better next quarter, if only because of easy comparisons to last year when the bottom fell out of the market.
Only two of the 19 media segments measured by TNSMI posted growth in the first half: Internet display advertising, up 6.5 percent; and Free Standing Inserts, up 4.6 percent. Both media benefited from larger budgets allocated by consumer packaged goods marketers. Print media took the biggest budget hits. Spending in magazines dropped nearly 21 percent. Newspaper spending dropped 24.2 percent.
Due to weakness in local markets, particularly auto and retail, radio spending decreased 24.6 percent, with local down 25.5 percent and national spot down 29 percent. Network radio fared better with an 8.7 percent decline.
TV spending was a mixed bag, down 10 percent in total, mostly on a 27 percent drop in Spot TV. Network TV, Cable TV and national syndication had single-digit declines of 5.5 percent, 3.6 percent and 0.7 percent, respectively. Spanish Language TV was down 12.7 percent.
Outdoor was down 15.7 percent.
Advertising spending fell 14.3 percent to $60.87 billion in the first half of 2009, capping off five consecutive quarters of negative growth, according to data released Wednesday (Sept. 16) from TNS Media Intelligence. The final tally was similar to estimates released two weeks ago by Nielsen Monitor-Plus, which reported total ad spending down 15.4 percent to $56.9 billion. The declines in second quarter differed little from first quarter, leading some to conclude that advertising had hit bottom. But John Swallen, senior vp of research and TNSMI, cautioned that conclusion might be premature.
“While it’s tempting to interpret this as a positive indicator that things aren’t getting worse, the fact remains that the market has been steadily tracking at around 14 percent declines for several consecutive months and this represents billions of lost revenue,” Swallen said.
The numbers could look better next quarter, if only because of easy comparisons to last year when the bottom fell out of the market.
Only two of the 19 media segments measured by TNSMI posted growth in the first half: Internet display advertising, up 6.5 percent; and Free Standing Inserts, up 4.6 percent. Both media benefited from larger budgets allocated by consumer packaged goods marketers. Print media took the biggest budget hits. Spending in magazines dropped nearly 21 percent. Newspaper spending dropped 24.2 percent.
Due to weakness in local markets, particularly auto and retail, radio spending decreased 24.6 percent, with local down 25.5 percent and national spot down 29 percent. Network radio fared better with an 8.7 percent decline.
TV spending was a mixed bag, down 10 percent in total, mostly on a 27 percent drop in Spot TV. Network TV, Cable TV and national syndication had single-digit declines of 5.5 percent, 3.6 percent and 0.7 percent, respectively. Spanish Language TV was down 12.7 percent.
Outdoor was down 15.7 percent.
Adobe to Acquire Omniture
http://www.nytimes.com/2009/09/16/technology/companies/16adobe.html?_r=1&emc=eta1
Adobe, based in San Jose, Calif., will pay $21.50 a share in cash, a premium of 24 percent over Omniture’s closing stock price Tuesday. Omniture shares jumped nearly 26 percent in after-hours trading.
From ADAGE
Adobe Systems announced last night that it will acquire web-analytics firm Omniture for $1.8 billion in equity by fourth-quarter fiscal 2009. The deal finds Abobe picking up all outstanding Omniture stock at a 45% premium.
The union foretells a digital-content platform that sees ads through creation to delivery -- and now to optimization. Adobe hopes marrying its creative production tools with Omniture analytics will create what Adobe President-CEO Shantanu Narayen calls an "end-to-end platform." For creatives, that means metrics can't be an afterthought; they'll need to be part of the content-creation process from the beginning. For data analysts and media companies, it means potentially more clarity into what creative formats and media placements are working -- and how.
"Chief digital officers want to understand which video content is performing the best," said Mr. Narayen during the third-quarter earnings call. "They want to produce rich ads, but also understand the click-through rates in real time."
Omniture CEO Josh James said the deal will allow creatives to integrate measurement into the front end of the ad-creation process and that marrying the two companies would improve content engagement, ad effectiveness and the overall user experience that's driving the shift of ad dollars from offline to online.
Adobe, based in San Jose, Calif., will pay $21.50 a share in cash, a premium of 24 percent over Omniture’s closing stock price Tuesday. Omniture shares jumped nearly 26 percent in after-hours trading.
From ADAGE
Adobe Systems announced last night that it will acquire web-analytics firm Omniture for $1.8 billion in equity by fourth-quarter fiscal 2009. The deal finds Abobe picking up all outstanding Omniture stock at a 45% premium.
The union foretells a digital-content platform that sees ads through creation to delivery -- and now to optimization. Adobe hopes marrying its creative production tools with Omniture analytics will create what Adobe President-CEO Shantanu Narayen calls an "end-to-end platform." For creatives, that means metrics can't be an afterthought; they'll need to be part of the content-creation process from the beginning. For data analysts and media companies, it means potentially more clarity into what creative formats and media placements are working -- and how.
"Chief digital officers want to understand which video content is performing the best," said Mr. Narayen during the third-quarter earnings call. "They want to produce rich ads, but also understand the click-through rates in real time."
Omniture CEO Josh James said the deal will allow creatives to integrate measurement into the front end of the ad-creation process and that marrying the two companies would improve content engagement, ad effectiveness and the overall user experience that's driving the shift of ad dollars from offline to online.
Friday, September 4, 2009
Struck Creative and Axiom Design Collaborative are merging
http://www.sltrib.com/business/ci_13163035
One Salt Lake City-based agency helps create identities for movies, retail products and athletic teams. Another firm, headquartered just a few blocks away, figures out how to present those identities through a wide range of traditional and high-tech media.
Now the two -- Struck Creative and Axiom Design Collaborative -- are merging; their new moniker: Struck/Axiom.
Struck was organized seven years ago as a hybrid advertising agency that uses a wide variety of media to communicate client messages. It employs about 50, with a satellite office in Portland, Ore.
Axiom, described by Conner as one of the nation's "premier graphic-design studios," employs 16 and has an office in Los Angeles.
Clients include large movie-makers such as DreamWorks, Warner Bros., Fox and Paramount Pictures. Major Utah clients include Deer Valley Resort, Real Salt Lake soccer and the Utah Office of Tourism. Also on the list are major retail brands such as Quaker Oats, Adidas and Rossignol, along with sports teams such as the New York Jets and Cleveland Browns
One Salt Lake City-based agency helps create identities for movies, retail products and athletic teams. Another firm, headquartered just a few blocks away, figures out how to present those identities through a wide range of traditional and high-tech media.
Now the two -- Struck Creative and Axiom Design Collaborative -- are merging; their new moniker: Struck/Axiom.
Struck was organized seven years ago as a hybrid advertising agency that uses a wide variety of media to communicate client messages. It employs about 50, with a satellite office in Portland, Ore.
Axiom, described by Conner as one of the nation's "premier graphic-design studios," employs 16 and has an office in Los Angeles.
Clients include large movie-makers such as DreamWorks, Warner Bros., Fox and Paramount Pictures. Major Utah clients include Deer Valley Resort, Real Salt Lake soccer and the Utah Office of Tourism. Also on the list are major retail brands such as Quaker Oats, Adidas and Rossignol, along with sports teams such as the New York Jets and Cleveland Browns
Campfire acquired The Advance Guard
http://www.theadvanceguard.com/2009/the-advance-guard-acquired-by-campfire/
http://www.campfirenyc.com/SMPR/campfire_acquires_tag/
Financial terms of the acquisition are undisclosed. The Advance Guard’s 2008 billings approximate $1 MM, while Campfire’s annual billings are estimated at $7 MM.
The merging of the two companies will bring Campfire to a total staff of 25.
Since its own inception in 2007, The Advance Guard has collaborated with Campfire on several groundbreaking campaigns including HBO’s ‘True Blood’ viral controversy; Verizon FIOS’s original TV makeover series, ‘My Home 2.0’; Discovery’s ‘Shark Week’ adventure marketing; and Snapple’s latest digital ‘Real Facts’ initiative. Such successful collaborations led to Campfire’s decision to acquire the shop.
http://www.campfirenyc.com/SMPR/campfire_acquires_tag/
Financial terms of the acquisition are undisclosed. The Advance Guard’s 2008 billings approximate $1 MM, while Campfire’s annual billings are estimated at $7 MM.
The merging of the two companies will bring Campfire to a total staff of 25.
Since its own inception in 2007, The Advance Guard has collaborated with Campfire on several groundbreaking campaigns including HBO’s ‘True Blood’ viral controversy; Verizon FIOS’s original TV makeover series, ‘My Home 2.0’; Discovery’s ‘Shark Week’ adventure marketing; and Snapple’s latest digital ‘Real Facts’ initiative. Such successful collaborations led to Campfire’s decision to acquire the shop.
Thursday, September 3, 2009
Gartner projects mobile ad spending will grow 74% this year
Mobile ad spending will reach $913.5 million this year, up 74% over last year, according to a new report from Gartner.
The report, “Mobile Advertising Grows Quietly,” projects that mobile ad spending will reach $13 billion by 2013. The Asia Pacific region is expected to lead worldwide mobile growth, followed by North America and Western Europe.
Newspaper slump deepens as 2Q ad sales fall 29 pct
Newspapers' financial woes worsened in the second quarter as advertising sales shrank by 29 percent, leaving publishers with $2.8 billion less revenue than they had at the same time last year.
It's the deepest downturn yet during a three-year free fall in advertising revenue - newspapers' main source of income. The magnitude of the industry's advertising losses have intensified in each of the last 12 quarters.
The latest turbulence left U.S. newspapers with ad sales of $6.8 billion in this year's second quarter compared to $9.6 billion last year.
http://www.forbes.com/feeds/ap/2009/08/27/general-us-newspaper-advertising_6824040.html
It's the deepest downturn yet during a three-year free fall in advertising revenue - newspapers' main source of income. The magnitude of the industry's advertising losses have intensified in each of the last 12 quarters.
The latest turbulence left U.S. newspapers with ad sales of $6.8 billion in this year's second quarter compared to $9.6 billion last year.
http://www.forbes.com/feeds/ap/2009/08/27/general-us-newspaper-advertising_6824040.html
Social networking sites grab big slice of Web ads
About one of every five Internet display ads in the United States is viewed on a social networking Web site like MySpace and Facebook, according to a new report.
The report by analytics firm comScore underscores the increasing prominence of social media sites in the Internet landscape and broadening acceptance of the sites by brand advertisers.
http://www.reuters.com/article/newsOne/idUSTRE5805QX20090901
The report by analytics firm comScore underscores the increasing prominence of social media sites in the Internet landscape and broadening acceptance of the sites by brand advertisers.
http://www.reuters.com/article/newsOne/idUSTRE5805QX20090901
Nielsen: U.S. Ad Spend Falls 15.4% in First Half
U.S. ad spending fell 15.4 percent in the first half of 2009, according to data released today by the Nielsen Co. A total of $56.9 billion was spent on advertising in the first six months of the year, more than $10.3 billion less than the same period in 2008.
The automotive industry was the top spender ($3.68 billion), despite a 31 percent cut over last year. Local auto dealerships -- also a perennial top-10 spending category -- cut its ad budget 26 percent through June 2009.
It wasn't all bad news for the advertising industry this year. Cable TV was the only media category to see added spending with a 1.5 percent surge overall and a 0.6 percent increase for Spanish-language cable TV. Quick-service Restaurants -- the second highest-spending industry -- spent $2.2 billion in the first half of '09, thanks to a 5 percent increase over the first half of 2008. And spending on multi-function cell phones more than doubled to almost $233 million.
http://www.adweek.com/aw/content_display/news/agency/e3i0d1b247e2040d9db7d7ff3ccf67716e0
Publicis Buys Unilever CRM Platform
In an unusual move designed to boost its broader digital strategy, Paris-based holding company Publicis Groupe said it has acquired Pour Tout Vous Dire, the French customer relationship management program of key client Unilever.Unilever's own brands use the platform to reach more than 5 million households, and the packaged-goods giant has signed a five-year licensing deal with Publicis to keep its products represented. The venue was launched 12 years ago as a consumer magazine, but has since morphed into a Web-focused portal designed to help build and strengthen relationships between mainly female consumers and various Unilever brands.
http://www.brandweek.com/bw/content_display/news-and-features/hispanic-marketing/e3i76e7bfe15f67e9f1c79baeafddecede0
http://www.brandweek.com/bw/content_display/news-and-features/hispanic-marketing/e3i76e7bfe15f67e9f1c79baeafddecede0
Dentsu CEO: On Lookout For Potential Buys
http://online.wsj.com/article/BT-CO-20090901-716600.html "If there is a chance, we are open to acquisitions not just in the U.S., but also in Europe and Asia," President and Chief Executive Tatsuyoshi Takashima told Dow Jones Newswires in an interview Tuesday.
We're not just targeting firms with digital technology, but also firms in other aspects of marketing communications, though we have no specific target yet,"
The firm, which has over 4,500 overseas staff in 101 offices in 28 countries, currently generates 8.7% of its net sales overseas. It aims to boost this to at least 12% by 2013.
Dentsu's clientele include blue chips such as Toyota Motor, Honda Motor, Hitachi, Toshiba, Panasonic, Sanyo Electric, Sony, Canon and Sharp.
We're not just targeting firms with digital technology, but also firms in other aspects of marketing communications, though we have no specific target yet,"
The firm, which has over 4,500 overseas staff in 101 offices in 28 countries, currently generates 8.7% of its net sales overseas. It aims to boost this to at least 12% by 2013.
Dentsu's clientele include blue chips such as Toyota Motor, Honda Motor, Hitachi, Toshiba, Panasonic, Sanyo Electric, Sony, Canon and Sharp.
Ascend Media sells event media division
TGP Capital Partners and Cameron Bishop have acquired the event and custom media division of Ascend Media
Financial terms of the deal were not disclosed.
Cameron Bishop, Ascend’s former CEO, will be CEO of the newly acquired property, which will operate under the Ascend Media name and remain based in Overland Park, Kan. He is the founder and former chairman and CEO of Ascend Media, building it into a $120 million company before liquidating his ownership stake about a year ago.
It’s on the cutting edge of blending traditional print properties with digital assets in an integrated package. There are only a few companies around the nation as well positioned to do that as this one. It’s both a content creation and a content management business.”
Clients include The American Heart Association, American Sport Fishing Association, the American Academy of Family Physicians, McDonald's and Ace Hardware.
http://www.btobonline.com/apps/pbcs.dll/article?AID=/20090901/FREE/909019988/1078/newsletter011
http://dealbook.blogs.nytimes.com/2009/09/02/tgp-and-bishop-acquire-ascend-media-division/
http://www.bizjournals.com/kansascity/stories/2009/08/31/daily12.html?ana=from_rss
Financial terms of the deal were not disclosed.
Cameron Bishop, Ascend’s former CEO, will be CEO of the newly acquired property, which will operate under the Ascend Media name and remain based in Overland Park, Kan. He is the founder and former chairman and CEO of Ascend Media, building it into a $120 million company before liquidating his ownership stake about a year ago.
It’s on the cutting edge of blending traditional print properties with digital assets in an integrated package. There are only a few companies around the nation as well positioned to do that as this one. It’s both a content creation and a content management business.”
Clients include The American Heart Association, American Sport Fishing Association, the American Academy of Family Physicians, McDonald's and Ace Hardware.
http://www.btobonline.com/apps/pbcs.dll/article?AID=/20090901/FREE/909019988/1078/newsletter011
http://dealbook.blogs.nytimes.com/2009/09/02/tgp-and-bishop-acquire-ascend-media-division/
http://www.bizjournals.com/kansascity/stories/2009/08/31/daily12.html?ana=from_rss
Interactive Shop Definition 6 Acquires Creative Bubble
http://paidcontent.org/article/419-interactive-shop-definition-6-acquires-creative-bubble-/
Online ad agency Definition 6, fresh from raising roughly $15 million in private equity last month, has bought digital production and marketing firm Creative Bubble. The amount of the deal wasn’t disclosed. The combined entity will have about 100 employees, and will give Atlanta-based Definition 6 a New York office, thanks to Creative Bubble’s location. That will help Definition 6 gain a more national presence, says CEO and founder Michael Kogon in a post on the company’s official blog. Definition 6 also says it plans to “invest in talent,” and to build up its technology and other services, about 8 months after it laid off several staff members.
There’s still money in online marketing, if not the advertising side of it: Definition6, an Atlanta-based online marketing agency, has received about $15 million in new funding, from PE firm Navigation Capital Partners. also based in Atlanta. The 10-year old firm is one of the largest in the southeast, focusing on online marketing, design and e-commerce.
Just six months ago, it did a round of layoffs, and now says it has controlled costs and knows what the future direction is, according to this ClickZ story. With the new money, it plans to acquire two to three digital marketing firms in the next year or so, it says, in the social marketing monitoring and related areas. Clients include VeriFone, Cox, La Quinta Inn & Suites, Carter’s and Wendy’s/Arby’s Group.
http://paidcontent.org/article/419-interative-marketing-firm-definition6-gets-15-million-in-pe-money/
http://www.clickz.com/3634375
Online ad agency Definition 6, fresh from raising roughly $15 million in private equity last month, has bought digital production and marketing firm Creative Bubble. The amount of the deal wasn’t disclosed. The combined entity will have about 100 employees, and will give Atlanta-based Definition 6 a New York office, thanks to Creative Bubble’s location. That will help Definition 6 gain a more national presence, says CEO and founder Michael Kogon in a post on the company’s official blog. Definition 6 also says it plans to “invest in talent,” and to build up its technology and other services, about 8 months after it laid off several staff members.
There’s still money in online marketing, if not the advertising side of it: Definition6, an Atlanta-based online marketing agency, has received about $15 million in new funding, from PE firm Navigation Capital Partners. also based in Atlanta. The 10-year old firm is one of the largest in the southeast, focusing on online marketing, design and e-commerce.
Just six months ago, it did a round of layoffs, and now says it has controlled costs and knows what the future direction is, according to this ClickZ story. With the new money, it plans to acquire two to three digital marketing firms in the next year or so, it says, in the social marketing monitoring and related areas. Clients include VeriFone, Cox, La Quinta Inn & Suites, Carter’s and Wendy’s/Arby’s Group.
http://paidcontent.org/article/419-interative-marketing-firm-definition6-gets-15-million-in-pe-money/
http://www.clickz.com/3634375
Friday, August 28, 2009
Cossette announces the implementation of an executive retention program and updates on its strategic review process
http://finance.yahoo.com/news/Cossette-announces-the-cnw-1697015310.html?x=0&.v=1
KOS (TSX)QUEBEC CITY, Aug. 27 /CNW Telbec/ - Cossette announces that its Board of Directors, having received a favourable recommendation from its Special Committee with the assistance of its legal advisor and the financial advisor of the Company, has approved (Messrs. Claude Lessard and Pierre Delagrave abstaining) the implementation of a retention program for executives, effective immediately.
The decision to implement a retention program was made in the context of the unsolicited and non-binding proposal by Cosmos Capital to acquire all the shares of the Company not already owned by its members and the decision of the Board of Directors of the Company to publicly and actively solicit proposals from third parties interested in the Company. The retention program is designed to facilitate retention of executives, address their concerns at this time of uncertainty and maintain stability.
The retention program includes customary change of control agreements with executives providing for severance payments in case of a change of control of the Company and the termination of employment of executives under certain specific circumstances. It also includes retention bonuses for executives (except for Messrs. Claude Lessard and Pierre Delagrave) totalling approximately $3,500,000. The retention bonuses will be payable six months after the change of control of the Company. If the Board of Directors ends its strategic review process, it may also decide, depending on the circumstances, to pay the retention bonuses. This program will be rolled out in the next few days.
"The Special Committee is very satisfied with the retention program Cossette is implementing. In the new context like the one Cossette is facing, it is imperative to reassure our clients by retaining our people in order to maintain our high level of service. This measure also constitutes an important factor for maximising value for shareholders", commented Mr. Jean Lavigueur, Chairman of the Special Committee.
Update on Strategic Review Process
Since the August 14th announcement that the Board of Directors of the Company would actively solicit proposals from third parties interested in acquiring the Company, BMO Capital Markets, the financial advisor of the Company, has broadly solicited expressions of interest from third parties in respect of a potential acquisition and has held encouraging dialogues with them. Cossette has executed confidentiality and standstill agreements with a number of these parties and provided them with access to an extensive electronic data room and the opportunity to conduct a thorough due diligence process on the Company.
The Company cautions shareholders that there is no assurance whether the Company will receive a definitive proposal with respect to a potential acquisition as a result of this process. Also, even if a definitive proposal is received, there is no assurance that such a proposal will be recommended by the Special Committee or the Board of Directors or that such a proposal will be implemented.
Cossette Inc. offers a full range of leading-edge communication services to clients of all sizes, including some of the most prestigious brands in the world. A customer-driven organization built around highly specialized business units, Cossette also offers Convergent Communications(TM), a unique working method that brings added value to the client by integrating various services offered by the Group, including strategic planning and research, advertising, media buying and channel planning, sales promotion, direct response, database and direct marketing, customer relationship management, interactive marketing and technology solutions, public relations, organizational communication and change management, sponsorship and alliance marketing, branding and design, ethnic marketing, business-to-business communications (B2B practices) and print and video production. Cossette has approximately 1,485 employees and offices in Quebec City, Montreal, Toronto, Vancouver, Halifax, New York, Irvine, Los Angeles, London and Shanghai.
For further information
Financial Analysts only: Martin Faucher, Vice-President and Chief Financial Officer, (418) 521-3784Investors: Francis Trudeau, Director, Acquisitions and Investor Relations, (514) 282-4633Medias: Sylvie Isabelle, Optimum Public Relations, (418) 521-3184Source: Cossette Inc., www.cossette.com
KOS (TSX)QUEBEC CITY, Aug. 27 /CNW Telbec/ - Cossette announces that its Board of Directors, having received a favourable recommendation from its Special Committee with the assistance of its legal advisor and the financial advisor of the Company, has approved (Messrs. Claude Lessard and Pierre Delagrave abstaining) the implementation of a retention program for executives, effective immediately.
The decision to implement a retention program was made in the context of the unsolicited and non-binding proposal by Cosmos Capital to acquire all the shares of the Company not already owned by its members and the decision of the Board of Directors of the Company to publicly and actively solicit proposals from third parties interested in the Company. The retention program is designed to facilitate retention of executives, address their concerns at this time of uncertainty and maintain stability.
The retention program includes customary change of control agreements with executives providing for severance payments in case of a change of control of the Company and the termination of employment of executives under certain specific circumstances. It also includes retention bonuses for executives (except for Messrs. Claude Lessard and Pierre Delagrave) totalling approximately $3,500,000. The retention bonuses will be payable six months after the change of control of the Company. If the Board of Directors ends its strategic review process, it may also decide, depending on the circumstances, to pay the retention bonuses. This program will be rolled out in the next few days.
"The Special Committee is very satisfied with the retention program Cossette is implementing. In the new context like the one Cossette is facing, it is imperative to reassure our clients by retaining our people in order to maintain our high level of service. This measure also constitutes an important factor for maximising value for shareholders", commented Mr. Jean Lavigueur, Chairman of the Special Committee.
Update on Strategic Review Process
Since the August 14th announcement that the Board of Directors of the Company would actively solicit proposals from third parties interested in acquiring the Company, BMO Capital Markets, the financial advisor of the Company, has broadly solicited expressions of interest from third parties in respect of a potential acquisition and has held encouraging dialogues with them. Cossette has executed confidentiality and standstill agreements with a number of these parties and provided them with access to an extensive electronic data room and the opportunity to conduct a thorough due diligence process on the Company.
The Company cautions shareholders that there is no assurance whether the Company will receive a definitive proposal with respect to a potential acquisition as a result of this process. Also, even if a definitive proposal is received, there is no assurance that such a proposal will be recommended by the Special Committee or the Board of Directors or that such a proposal will be implemented.
Cossette Inc. offers a full range of leading-edge communication services to clients of all sizes, including some of the most prestigious brands in the world. A customer-driven organization built around highly specialized business units, Cossette also offers Convergent Communications(TM), a unique working method that brings added value to the client by integrating various services offered by the Group, including strategic planning and research, advertising, media buying and channel planning, sales promotion, direct response, database and direct marketing, customer relationship management, interactive marketing and technology solutions, public relations, organizational communication and change management, sponsorship and alliance marketing, branding and design, ethnic marketing, business-to-business communications (B2B practices) and print and video production. Cossette has approximately 1,485 employees and offices in Quebec City, Montreal, Toronto, Vancouver, Halifax, New York, Irvine, Los Angeles, London and Shanghai.
For further information
Financial Analysts only: Martin Faucher, Vice-President and Chief Financial Officer, (418) 521-3784Investors: Francis Trudeau, Director, Acquisitions and Investor Relations, (514) 282-4633Medias: Sylvie Isabelle, Optimum Public Relations, (418) 521-3184Source: Cossette Inc., www.cossette.com
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