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.
Monday, November 23, 2009
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.
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