IBM to buy Web analytics company Coremetrics

http://blogs.wsj.com/venturecapital/2010/06/16/the-daily-start-up-bubble-survivor-coremetrics-to-wed-ibm/

IBM Corp. announced Tuesday that it plans to acquire Web analytics and marketing optimization company Coremetrics Inc. Financial terms of the deal, expected to close in the third quarter, were not disclosed.

The acquisition of Coremetrics would further expand IBM’s software and services business, in particular in the area of marketing analytics and reporting. Last fall, IBM bought predictive analytics company SPSS Inc. for $1.2 billion in cash, acquiring in the process software that helps companies analyze and forecast marketing and product trends.

San Mateo, Calif.-based Coremetrics serves 2,100 companies internationally, Including Bank of America, Office Depot and Virgin Atlantic, providing Web and mobile analytics solutions, targeted e-mail and ad tracking.

Coremetrics was considering a public offering of its stock when IBM came calling. It raised $113 million during the dot-com boom, but venture backers recapitalized the company in 2002, writing off their prior investment. Since then, it raised $111 million. Accel Partners and Highland Capital Partners are long-time backers.

http://www.btobonline.com/apps/pbcs.dll/article?AID=/20100615/FREE/100619933/1078/newsletter011

MeritDirect buys Venture Direct Worldwide

http://www.dmnews.com/meritdirect-buys-venture-direct-worldwide/article/172473/


List management company MeritDirect said June 14 that it will acquire Venture Direct Worldwide, a fellow list management firm. Financial terms of the deal were not disclosed.
MeritDirect is managing Venture Direct's list services division, including its Xactmail e-mail and postal databases, effective immediately, MeritDirect said in a statement.

James Scova, former VP of business development at Venture Direct, will join MeritDirect as VP. MeritDirect also announced that an account executive and three assistant account executives will join the company, but did not elaborate on other personnel moves in a statement.

MeritDirect agreed to acquire list management company Mail Marketing Incorporated last June, adding more than 350 list management properties to its business.

PlattForm Holdings, an Internet marketing and enrollment solutions provider for the post-secondary education industry, acquired VentureDirect Worldwide and Zuma LLC in August 2007 to strengthen its multichannel marketing offerings.

Accenture Interactive acquires CadenceQuest

Accenture Interactive, the digital marketing business of consulting firm Accenture, announced the acquisition of CadenceQuest, a customer data and analytics company that serves the retail industry.
Financial terms of the deal were not disclosed.
Under the acquisition, the retail sector software assets of CadenceQuest will be merged into the suite of digital, marketing analytics, retail marketing and merchandising solutions offered by Accenture Interactive.
http://www.btobonline.com/apps/pbcs.dll/article?AID=/20100520/FREE/100529996/1078/newsletter011

Google buys ad exchange manager Invite Media

http://www.btobonline.com/apps/pbcs.dll/article?AID=/20100603/FREE/100609953/1078/newsletter011
Google has bought Invite Media, a startup whose technology helps advertisers and agencies manage display-ad exchanges.
Financial terms of the deal were not disclosed, but the All Things Digital website put the purchase price at about $70 million.
Google plans to allow Philadelphia-based Invite Media to operate as a standalone unit. It will work with Google’s own ad exchange, AdX, as well as such other ad exchanges as Microsoft Corp.’s AdECN and Yahoo’s Right Media.
Three-year-old Invite Media has received funding from Comcast, Creative Commerce, First Round Capital, Genacast Investors and Interactive Capital

Velti Acquires Media Cannon

http://www.marketwire.com/press-release/Velti-Acquires-Media-Cannon-LSE-VEL-1270355.htm

Velti a leading global provider of mobile marketing and advertising technology, today announced the acquisition of Media Cannon, Inc. ("Media Cannon"), a developer of mobile advertising tools and technology, for an undisclosed sum.
This acquisition provides Velti with a complementary technology platform and proprietary solutions that enable an even richer mobile advertising and mobile Internet user experience, as well as a series of mobile marketing "post click" interactions. The Media Cannon platform also delivers carrier-class infrastructure, API access, transcoding, support and reporting tools for mobile campaign development, delivery and evaluation.

INFOCUS Acquires Continental Services, Inc.

http://www.businesswire.com/portal/site/home/permalink/?ndmViewId=news_view&newsId=20100601005263&newsLang=en

INFOCUS announces today the acquisition of Continental Services, Inc., located in Manassas, VA, a print, mailing services and fulfillment company to trade associations, government organizations, non-profits and small to large businesses across all industries since 1990. The acquisition positions INFOCUS Marketing, Inc., as the leading provider of list management and brokerage services to over 150 national, professional associations and trade organizations, as a full-service direct marketing firm; specializing in list management and brokerage, design, copywriting, email services, direct mail, digital printing and fulfillment solutions for both national associations and business organizations.

EMarketer says online ad spending will increase 10.8% this year

http://www.btobonline.com/apps/pbcs.dll/article?AID=/20100617/FREE/100619913/1078/newsletter011

With a recovery under way, online ad spending in the U.S. will reach $25.1 billion this year, up 10.8% over last year, according to a new report from eMarketer.
The report, “U.S. Ad Spending: How Big Is the Bounceback?” projects that by 2014, online ad spending will make up 20.3% of total media ad spending.
This year, online ad spending will account for 15.1% of total media ad spending, according to eMarketer.
The online ad formats that will receive the greatest funding this year are search ($12.4 billion), banner ads ($5.5 billion), classified ads ($1.9 billion), rich media ($1.6 billion), lead-gen ($1.5 billion) and online video ($1.5 billion).By 2014, online video spending will reach $5.5 billion, surpassing all but search and banner ads, eMarketer projected.

Cineplex Entertainment Announces Plans to Acquire Digital Display & Communications Inc. (DDC)

http://www.marketwatch.com/story/cineplex-entertainment-announces-plans-to-acquire-digital-display-communications-inc-ddc-2010-06-17?reflink=MW_news_stmp

Cineplex Entertainment Limited Partnership ("Cineplex Entertainment") /quotes/comstock/11t!cgx.un (CA:CGX.UN 19.70, -0.20, -1.01%) announced today its agreement to acquire DDC Group International Inc. and its subsidiaries, including Digital Display & Communications Inc. ("DDC"), a leading implementer of digital signage networks and associated products and services. DDC is a Waterloo-based digital signage company that designs, installs, maintains and operates digital signage networks on numerous software platforms in retail, financial, hospitality and entertainment markets across North America. The transaction value is approximately $3.5 million.

Beckerman Acquires Antenna Group, Leading San Francisco Clean Tech Firm

http://www.prnewswire.com/news-releases/beckerman-acquires-antenna-group-leading-san-francisco-clean-tech-firm-96560244.html

Beckerman, one of the largest independent public relations firms in the industry, today announced the acquisition of Antenna Group Inc., a nationally recognized, full-service, strategic communications firm specializing in serving clean technology companies and corporations concerned about sustainability. The acquisition creates the largest clean technology specialty public relations practice in the nation.

Founded in 1996 and based in San Francisco, Antenna provides specialized public relations services to clients focused on new industrial technologies in sectors with great near- and long-term futures, including: green building, energy efficiency, smart grid, energy storage and management, transportation, renewable energy, finance, biofuels, chemistry, water and green building.

Antenna's clients include 3M Corp. Renewable Energy Group, Accelergy, Akeena Solar, CalCEF, Cogenra, eSolar, EV Connect, GlassPoint, IEEE PV Specialists Conference, Illumitex, Lumenergi, Mainstream Energy, NanoH2O, PowerGenix, Solexant, SunReports, Tioga Energy and Xtreme Power.

Media and ad outlook brighter in Canada than U.S., PwC report

http://www.marketingmag.ca/english/news/media/article.jsp?content=20100617_170633_5596

Revenue in Canada's entertainment and media market will increase 5% each year from 2010 until 2014, faster than the 3.8% annual rise predicted for the US market, while Canadian ad revenue should increase 3.1%, according to new research from PricewaterhouseCoopers.

In Canada, total advertising revenue is set to rise at a 3.1% CAGR in Canada, also higher than the 2.6% forecast for the U.S.

Global advertising is set to increase at a 4.2% CAGR, according to PwC, up to $498 billion (US), with Internet advertising leading the way. It will join television advertising as the only media with spending of over $100 billion (US), the report forecasts.

100 Leading National Advertisers: Ad Age

Top 100 Outlays Plunge 10% but Defying Spend Trend Can Pay Off

Here's the good news for CMOs, media and agencies: 26 top marketers bucked the trend and boosted 2009 advertising even as spending for the 100 Leading National Advertisers plunged 10.2%. Among those with the guts to spend more, 70% saw a U.S. sales increase -- double the success rate of those whose spending declined.

http://adage.com/article?article_id=144555

Among the Top 100 advertisers, one in four spent more, betting on opportunity in the Great Recession.

4info to Buy Butter

http://adage.com/digital/article?article_id=144584

Butter Acquisition to Spread Mobile Marketing Consolidation
Mobile Text-Message Company 4info to Buy App-Ad Firm, Signaling Industry Shift Toward One-Stop Shops

Butter, a mobile-marketing firm that connects brands and apps for content sponsorships.

With this latest deal, 4info is looking beyond its core business of text messaging, the highest-reach mobile media, to expand into branded apps that have become popular on smartphones such as the iPhone. Mr. Elkin points out that as more phones get access to the internet and smartphones continue to gain market share, investing in app advertising makes sense for a text provider.

4info plans to take its newly acquired app expertise to its 300 brand partners, which include USA Today and other Gannett newspapers, the NBA, Yahoo and Evite. Today, 4info sends nearly one-third of all content-based texts in the U.S., said Ms. Shumaker, adding up up to about 100 million texts per month. Butter, on the other hand, is on track to bring in 5% of app content-sponsorship ad revenue, she said.

"The next frontier is the opportunity within this ecosystem to be a single-source platform that's third-party, meaning agnostic for device, carrier and [operating system]," she said.
The details of the deal were not disclosed. Butter's four employees will join 4info's New York office. The deal is expected to close in July.

MDC acquires New York PR firm

http://www.marketingmag.ca/english/news/agency/article.jsp?content=20100406_153626_5508

Now Toronto-based MDC Partners has announced it has acquired a majority interest in Sloane & Company, a New York-based public relations firm.

Sloane specializes in financial and public affairs communications, and was recently named crisis agency of the year by The Holmes Report. Sloane represented General Motors' bondholders in early 2009 during the automaker's bankruptcy.

The firm's client list currently includes New York Life, TiVo and Walgreens among others.
Elliot Sloane, the agency's chief executive officer, has known Nadal for a number of years and believes MDC's majority interest will enhance his offering by staying hands-off with teams that work well "and then providing the resources and expertise to grow in areas that we think make sense."

When asked where he'd like to see his business grow through the partnership, Sloane said, "the growth in our public affairs business would lead one to believe that we might want to do more in that area, either investing in more talent or potentially opening up a Washington office."
Sloane also said he also hopes to leverage the digital experts across MDC's network.

BBR acquires design agency Kolegram

http://www.marketingmag.ca/english/news/agency/article.jsp?content=20100331_170230_6400
Hot on the heels of one new partnership deal, Montreal agency BleuBlancRouge has acquired design agency Kolegram.

Based in Ottawa, the acquired shop now goes by BleuBlancRouge-Kolegram. Predictably, given its location, it has a number of public-sector clients such as the Government of Canada, several governmental agencies, CBC, and Tourisme Outaouais. It has also served several arts organizations such as the National Arts Centre, Ottawa's Opera Lyra and Galeries de Hull.
Kolegram's design staff will be bolstered by BleuBlancRouge's offering including public relations, media planning and full-service creative.

Kolegram has already won business with its new owner's backing. The acquisition overlaps news that Algonquin College, Brigil Platine, Telefilm Canada and Tourisme Outaouais have all tapped the agency for work in the near future. Kolegram was pitching the companies with creative and strategic support from BBR.

"This is a great opportunity for us to go to the next level," said Nicolas Cazelais, Kolegram founder and now president and partner of BBR-K. "It's always been a dream for us to provide the region with a great full-service creative shop."

Jon Bond Is Building a Marketing-Services 'Cooperative'

http://adage.com/agencynews/article?article_id=144355

Four months after departing Kirshenbaum Bond Senecal & Partners, the New York agency he co-founded in 1987, Jon Bond -- backed with some $100 million in financing -- is setting out to build a new marketing services entity to rival Kirshenbaum's owner, MDC Partners, and other holding companies, according to several industry executives.

The entity is being dubbed a "cooperative" to prospective partners and touted as an alternative structure to the current advertising and marketing holding-company model. Mr. Bond is said to have met with some 80 to 100 marketing services firms and tech outfits , in the U.S. and in Europe with a range of specialties. People familiar with the situation said Mr. Bond has raised $100 million from multiple resources and has invested his own money into the venture, too.

He has pulled the trigger on investing in a handful of firms so far, including: Crimson Hexagon, a Cambridge, Mass., provider of real-time market research; Klout, a San Francisco influencer tracking tool; Boston-based Dataxu, a demand-side platform; and Boulder, Colo.-based Victors & Spoils, which calls itself an ad agency built on crowd-sourcing principles. The latter attracted the most attention in adland, partly because the shop put out a press release announcing Mr. Bond's investment, and partly because the principals at the shop hail from MDC's premiere agency, Crispin Porter & Bogusky.

MDC acquires Allison & Partners

http://www.marketingmag.ca/english/news/agency/article.jsp?content=20100505_150003_9564
MDC Partners Inc. has gone shopping yet again. The Toronto-based agency network acquired a majority interest in Allison & Partners, a San Francisco-based public relations firm with an impressive list of blue-chip clients.

Terms of the deal announced Tuesday were not disclosed.

Allison & Partners, with offices in New York, Los Angeles, Washington, D.C., Seattle, Phoenix, Atlanta and San Diego, specializes in consumer marketing, corporate communications, technology, public affairs and health care.

Founded in 2001 and ranked by O'Dwyers as one of the top 10 largest independent PR firms by fee revenue, the firm is deeply immersed in technology and social media.

Their client roster includes Best Western International, Aramark, Hard Rock Hotels Las Vegas, Progressive Insurance, Samsung, Hasbro, Healthways, Boost Mobile and Sony.

IDC identifies 10 hot Canadian wireless and mobile companies

http://www.marketingmag.ca/english/news/agency/article.jsp?content=20100603_164815_10744

The 10 companies featured in the report are:
•Adenyo, a mobile marketing and media provider that delivers solutions for mobile marketing campaigns, with offices in Toronto, Montreal and Ottawa
•Clip Mobile, an interactive mobile marketing firm located in Toronto, specializing in location-based mobile coupons
•Common Enterprise, a Toronto-based company that develops software and services to sustain the demand for free flow of information
•Jigsee, a provider of enterprise VOD solutions and rich-media transfers for mobile service providers in emerging markets
•MMB Research, an engineering firm specializing in the adoption of Smart Energy technology
•Neuralitic, Montreal-based specialists in helping clients understand subscriber behaviour and improve marketing initiatives
•Polar Mobile, Toronto-based app experts, helping publishers, brands and advertisers deliver, measure and monetize digital media
•Quickplay, a solutions provider for managing the business of mobile video for service providers and media companies
•Seregon, a mobile enterprise solutions company from Ottawa concerned with providing enterprise mobility solutions
•Telepin Software, an Ottawa-based provider of mobile money transaction programs, delivering mobile financial applications
To be considered for evaluation, companies had to be privately held, with revenue under $20 million, and have fewer than 100 employees.

MDC Partners acquires U.S. direct response and analytics firm Integrated Media Solutions

http://www.marketingmag.ca/english/news/agency/article.jsp?content=20100511_144058_6816

IMS provides media planning and buying, as well as "analysis and optimization of offline and online media, including DRTV, all form of interactive advertising... radio and print media."
The eight-year-old IMS will become part of MDC's Performance Marketing Service Group, a set of companies dedicated to analytics.

"IMS and MDC are both like-minded in being completely focused on maximizing their clients' marketing and media investment dollars," said Ron Corvino, co-president and co-founder of IMS.

Miles Nadal, MDC's chairman and CEO, said getting the majority interest of IMS "speaks to our core strategy, which includes dramatically increasing our resources in this important group by organic growth and acquisition over the next five years. I'm incredibly impressed by the media savvy and industry expertise throughout IMS, and am thrilled to welcome them to the MDC Partners Network."

Since September 2009, Nadal has brokered deals with social media shop Attention Partners, analytics firm Communifx, experiential agency Team Enterprises, production house Shout Media, and PR firm Sloane & Company.

Note: according to BMO acquired for $20M upfront and up to $13M in next three years (estimated to be 4-5x ebitda)

Benjamin Moore Puts $11 Million into Social Networking

http://promomagazine.com/viralmarketing/news/0513-benjamin-moore-social-networking/

Benjamin Moore is going after its large fan base—and new customers—with a $15 million campaign, of which 76% is earmarked for social networking.

The campaign centers on eight top design and paint industry experts who may not be household names, but are experts recognized and respected in the design world, like Jamie Drake, whose clients include New York Mayor Michael Bloomberg and Superstar Madonna.

As for Facebook, Benjamin Moore plans to aggressively use the social networking site and Twitter (@Benjamin_Moore) to connect passionate brand customers and potential customers with the eight experts in the “Expert Exchange.” Other experts will regularly join the site to participate. Since the print ad appeared earlier this month Facebook fans have grown from 5,000 to 15,600.

Marketing startups Wordstream, AdReady gain new funding

http://www.btobonline.com/apps/pbcs.dll/article?AID=/20100511/FREE/100519981/1078/newsletter011

Search keyword optimization startup Wordstream has raised $6 million in a second round of funding, while another marketing startup, digital display advertising company AdReady, gained $5.3 million in its own second round.
Wordstream's subscription products help customers determine which keywords they should use for search campaigns. Its latest funding comes from new investor Egan-Managed Capital, as well as existing backer Sigma Partners, which provided the company with an initial $4 million in January 2009.
AdReady's platform provides display advertising management. Its new funding is supported by investors Madrona Venture Group, Bain Capital and Khosla Ventures, which together provided the Seattle-based company with $10 million in first-round funding in December 2007.

Bridgeline Digital acquires TMX Interactive

http://www.btobonline.com/apps/pbcs.dll/article?AID=/20100511/FREE/100519982/1078/newsletter011

Interactive agency Bridgeline Digital announced it has acquired TMX Interactive, an interactive technology company, in a deal valued at approximately $1.7 million.
TMX Interactive provides Web application development, Web site design and content management services. It will be merged into Bridgeline Digital and operate out of Philadelphia.

Infogroup acquired by CCMP Capital Advisors - Valuation Multiple

EV/EBITDA: 6.90x
$635M valuation
http://www.thedeal.com/newsweekly/insights/capital-calls/spring-fever.php

Thomas H. Lee Partners to acquire inVentiv Health for $1.1 billion

Thomas H. Lee Partners to acquire inVentiv Health for $1.1 billion
http://www.btobonline.com/apps/pbcs.dll/article?AID=/20100507/FREE/100509931/1078/newsletter011
Private equity firm Thomas H. Lee Partners announced plans to acquire inVentiv Health, a health care marketing and services agency, for approximately $1.1 billion.

Under the acquisition, Thomas H. Lee will provide investment funds to help inVentiv expand its clinical development, launch and commercialization services to the pharmaceutical and health care industries. The deal is expected to close in the third quarter.

http://finance.yahoo.com/news/inVentiv-Health-to-be-pz-562672869.html?x=0&.v=1

http://www.thedeal.com/newsweekly/insights/capital-calls/spring-fever.php

EV/EBITDA: 8.1x

E-Dialog to acquire database marketing company MBS

E-mail marketing solutions company e-Dialog will acquire MBS, a direct marketing database services company, for $22.5 million in cash.

MBS, based in Central Islip, N.Y., is owned by World Marketing, a consortium of production and mailing services companies headquartered in Omaha, Neb. MBS' database technology analyzes customer behavioral patterns to inform relevant messaging in e-mail, direct mail, mobile devices, social networks, e-commerce and telemarketing campaigns.

E-Dialog said the acquisition, in addition to aiding its marketing targeting capabilities, also will help provide reporting and analytics across customer channels.

Last week, e-Dialog bought mobile marketing solutions company M3 Mobile Marketing for an undisclosed sum.
http://www.btobonline.com/apps/pbcs.dll/article?AID=/20100503/FREE/100509978/1078/newsletter011

Canon Communications acquires Pharmalot

Canon Communications announced Monday that it has acquired Pharmalot, a blog focused on the pharmaceutical industry. Pharmalot's founder, Ed Silverman, will join Canon as an editor at large in the company's pharmaceutical media group, which includes MedAd News and R&D Directions.
Silverman will continue as Pharmalot's editor. He formerly worked for “The Pink Sheet,” a pharmaceutical industry newsletter, the Star-Ledger, New York Newsday and Investors Business Daily.

“Ed is an original voice within the pharmaceutical industry, with an outstanding career as a journalist covering the major issues affecting the industry's growth,” Patricia Spinner, Canon's senior group publisher in the pharmaceutical media group, said in a statement. “He is also a great addition to our digital media team, and we look forward to working with Ed as we continue to expand our digital offerings across all of the industries we serve.”
http://www.btobonline.com/apps/pbcs.dll/article?AID=/20100504/MEDIABUSINESS/100509965/1078/newsletter011

Marketo raises additional $10 million in equity funding

http://www.btobonline.com/apps/pbcs.dll/article?AID=/20100428/FREE/100429907/1078/newsletter011

Lead management vendor Marketo has received $10 million in a fourth round of equity funding to fuel its continued growth.

The investment was led by Mayfield Fund, with participation from existing investors InterWest Partners and Storm Ventures. With this series D round of funding, Marketo has now raised $32 million.

Marketo, which focuses on the small-to-midsize market, said it has signed on some 500 customers in the past two years.

Attensity Group to acquire social monitoring company Biz360

http://www.btobonline.com/apps/pbcs.dll/article?AID=/20100429/FREE/100429890/1078/newsletter011

Text analytics company Attensity Group announced it will acquire social media monitoring company Biz360 for an undisclosed sum.
The acquisition will add social customer relationship management capabilities, through the monitoring and analyzing of online conversations, to Attensity’s platform that finds and analyzes customer conversations occurring in e-mails, Web forums, surveys, CRM notes and other sources.
Upon the close of the deal, expected in the next 10 days, the Biz360 workforce will be integrated into Attensity, with Brad Brodigan, Biz360’s president-CEO, becoming senior VP-general manager at Attensity

Olson agency acquires Denali Marketing, recapped by KRG Capital

http://www.startribune.com/business/95657724.html?elr=KArks:DCiU1OiP:DiiUiD3aPc:_Yyc:aULPQL7PQLanchO7DiUr

The Minneapolis ad agency Olson is expanding its horizon into customer loyalty programs, a growing niche, with the acquisition of Denali Marketing, a fast-growing four-year-old firm whose client base includes Sun Country Airlines, Toys 'R' Us and Best Buy.

The merger, terms of which were not disclosed, is effective immediately and creates the largest independent ad shop in the Twin Cities in terms of head count, with 300 employees.

Olson is recapped by KRG Capital
http://www.krgcapital.com/nws-olson62810.cfm

Alloy Sells Its FrontLine Marketing Business to Acosta

http://finance.yahoo.com/news/Alloy-Sells-Its-FrontLine-pz-2948805311.html?x=0&.v=1

Alloy, Inc. ("Alloy") (Nasdaq:ALOY - News), one of the country's largest providers of targeted media and marketing programs, today announced the sale of its FrontLine in-store marketing division to Acosta Sales and Marketing. Alloy was paid a cash purchase price of $36 million, subject to a working capital adjustment. These proceeds add significantly to Alloy's net cash. The sale will permit Alloy management to increase its focus on the company's media and entertainment businesses.

The FrontLine business was purchased by Alloy in 2007. Under Alloy's ownership, the sales and profitability of the FrontLine division increased each year.

Publicis Groupe Acquires Resolute Communications

http://finance.yahoo.com/news/Publicis-Groupe-Acquires-prnews-3254278042.html?x=0&.v=1

Publicis Groupe announced today that it has acquired London-based strategic healthcare consultancy Resolute Communications Ltd. Founded in 2002, Resolute Communications provides healthcare communications programs spanning strategic consulting, medical education, and media and public relations.

Headquartered in London with an office in New York, Resolute has an award-winning track record, notably as the Pharma Times Marketing Communications Agency of the Year, the Holmes Report European Consultancy of the Year and as PR Week's Consultancy of the Year. The consultancy's client includes many of the world's best known pharma and biotech companies.

Resolute will be merged with Publicis Life Brands in London and the combined entity will be renamed Publicis Life Brands Resolute. The new operations will employ nearly 100 communications specialists and will further strengthen Publicis Healthcare Communications Group (PHCG)'s position in the United Kingdom.

By merging the branding and digital expertise of Publicis Life Brands with the strategic communications capabilities of Resolute Communications, Publicis Life Brands Resolute will now offer clients the complete range of healthcare communication services. This targeted acquisition illustrates Publicis Groupe's ongoing commitment to pursuing growth opportunities that create value for its clients. The acquisition expands PHCG's offering, while further boosting its positioning as the leading global healthcare communications network. This important development follows Advertising Age's 2010 ranking of PHCG as the first network in healthcare communications.

Nielsen Files for $1.75 Billion I.P.O.

http://dealbook.blogs.nytimes.com/2010/06/03/nielsen-joins-list-of-expected-p-e-backed-i-p-os/

Nielsen Holdings, a market research giant, filed Thursday for a $1.75 billion initial public offering.

Taken private in 2006 in a $10 billion leveraged buyout by six private equity firms led by Thomas H. Lee Partners and Kohlberg Kravis Roberts, Nielsen is the most notable of recent private-equity backed listings.

In its prospectus, the company said it had revenue of $4.8 billion last year, with a net loss of $489 million — about $100 million less than the previous year.

Indie Shops Reap Digital Profits

http://www.adweek.com/aw/content_display/news/agency/e3i6478fc41cf5464a5a945efbd72a978c8

It's not just that independent, owner-operated ad agencies are offering digital and interactive services, finds a survey released this week by Worldwide Partners. Many are making a profit on it, too.

The global survey was conducted last month among CEOs at agencies that comprise Worldwide Partners Inc., an international network of owner-operated shops. Sixty-nine percent of respondents said their firm offers digital/interactive services in-house, with another 22 percent saying they outsource such work. Forty-nine percent said digital work is "currently profitable for the agency." Just 15 percent said it isn't profitable, with most of the rest saying they don't separately track the profitability (or, as the case may be, unprofitability) of digital work.

Among those who do track digital separately and get a profit from it, just over one-third said the profit margin is better than 20 percent, while a similar proportion said it's in the 11-to-20-percent range.

Even in a period of widespread retrenchment in the advertising sector, 59 percent of respondents said the number of people they have working on digital has increased in the past 12 months. Looking ahead, 88 percent said they expect their digital staffing to increase in the next 12 months. Atop the list of digital job categories in which respondents expect to add staff in this period are project managers, Web-site designers, content developers and interactive media planners/buyers, as well as statistical Web analysts and social-marketing experts.

As things stand, the respondents' agencies rely on a mix of "dedicated" digital staffers and people who work on digital and non-digital projects alike. In creative, for instance, 34 percent said they have dedicated staff for digital work, while 54 percent said "creative people work on all kinds of creative projects, including digital."

Aegis Shakes Up Isobar

http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=128659


Aegis Media on Thursday announced the creation of a new structure for Isobar, which transforms the digital marketing services division into an "agency network."

As such, the new Isobar comprises those companies within the division that currently create communication assets for clients, incorporating creative, planning, technology and data services.
The point of the change was to create a global full-service capability for clients, according to Mark Cranmer -- who will continue in his role as the global CEO of Isobar. Cranmer called the Isobar "a potent challenger network in the dramatically changing industry landscape."
Effective immediately, the operating units within the Isobar agency network will all now incorporate the new Isobar brand identity.

This transition is expected to begin with immediate effect for all existing Isobar branded units, as well as within the network's five key markets: the UK through glue Isobar); the USA and Canada through Isobar North America); Brazil through AgenciaClick Isobar; Greater China through Wwwins Isobar; and France through Isobar France.

Jerry Buhlmann, CEO Aegis Group, said the shift was the result of increasing client demand for integrated campaigns and brand strategies on a global scale.

"The Isobar agency network will enable us to provide more coherent high-quality delivery to our clients throughout the world," Buhlmann said.

At the North America level of the agency, the restructuring involves the complete integration of four separate digital brands -- Ammo Marketing, Freestyle Interactive, Mindblossom and Molecular, Inc. -- into one Isobar North America brand.

In addition, Pedro Cabral, the founder of digital agency AgenciaClick, and chairman of Isobar global, has been named Interim President of Isobar North America. Pedro will be operating out of Isobar's Boston location.

Buhlmann only took on the role of CEO, most recently serving as head of global media operations. He succeeded John Napier, who held the top post in an interim role and remains chairman at the holding company.

Globally, Aegis said Isobar made up 31% of total revenue in 2009. Presently, Isobar clients include Nokia, Coca-Cola, Adidas, Reebok, Bacardi and P&G.

Newspaper ad revenue decline slows

http://www.btobonline.com/apps/pbcs.dll/article?AID=/20100528/MEDIABUSINESS/100529891/1078/newsletter011

Overall newspaper advertising revenue declined to $5.98 billion in the first quarter, a drop of 9.70% from the year-earlier period, according to Newspaper Association of America figures. It marked the industry’s best overall quarterly performance since the third quarter of 2007, which was also a decline.

Online ad revenue posted a 4.90% gain to $730.42 million. It was the first quarterly gain since the first quarter of 2008.

Overall print revenue fell to $5.25 billion, a decline of 11.42%. Classified ad revenue fell to $1.25 billion, a decline of 14.37%.

Alliance Data Systems to acquire Equifax’s direct marketing unit

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Alliance Data Systems Corp., parent of multichannel marketing company Epsilon, has reached an agreement to acquire the direct marketing services division of Equifax Inc. for $117 million.
The Equifax unit offers database marketing and hosting, as well as data services that include U.S. customer demographic information. The unit and its approximately 200 employees will be integrated into Epsilon’s targeting and marketing technology group.
The transaction is expected to close in the third quarter of this year, pending regulatory approval.

http://online.wsj.com/article/BT-CO-20100602-706825.html?mod=WSJ_Deals_LEFTLatestHeadlines

Hearst Buys ICrossing, Signals Further Agency Deals

http://adage.com/digital/article?article_id=144207

Hearst today confirmed it's acquiring digital agency iCrossing for approximately $325 million

Though Hearst wasn't after a search shop, the publisher was attracted to how iCrossing integrates search into its other digital marketing services, said Matthew Petersen, senior VP-Hearst Magazines. "What is compelling about search is how performance-driven, below-the-line marketing is the foundation for other services [iCrossing has] created, and helps in search-engine optimization and web development," he said. "As social and search dovetail more, that primary foundation is incredibly important."

Hearst is taking a page from Meredith, which has been the poster boy for publishers getting into digital marketing. Mr. Petersen, a Meredith alum who joined Hearst in March, will head a new business unit, Hearst Marketing Services, which iCrossing will fall under. ICrossing will operate as a separate operating unit and keep its name.

"ICrossing is going to operate very independently; where appropriate, we'll bring them in," Mr. Petersen said. "But our No. 1 priority is to support and fuel its independent growth."
Frank A. Bennack, Hearst's vice chairman-CEO, may not be putting away his wallet quite yet.

"I expect [Hearst] will continue to add, but we're not rushing to add tomorrow," Mr. Scales said.
Hearst's acquisition strategy is quite different than Meredith's. The latter has acquired a number of small marketing services shops over the years, while Heart is swallowing one large agency right from the start. Hearst's size drives this different approach, Mr. Petersen said.

"We needed a sizable asset with a large amount of capabilities and capacity," he said. "Hearst is 10 times what Meredith is."

This acquisition leaves only two large, independent digital agencies in the market: Hamilton, N.J.-based Rosetta, which is looking for acquisitions rather than buyers, and private equity-backed AKQA, San Francisco.

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The acquisition nets the owner of newspapers like the San Francisco Chronicle and magazines including Cosmopolitan a 600-person digital shop with its roots in search marketing and optimization. In recent years, iCrossing has beefed up its capabilities in Web creative, analytics and social media.

After Buying Up Online-Ad Specialists, Publicis CEO Seeks to Make Them Grow

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"There is nothing big left to buy," Mr. Lévy, chief executive of Publicis, said in an interview Monday.

"However, digital advertising still heralds many unknown opportunities."
Mr. Lévy's 23-year tenure as head of Publicis has been marked by aggressive acquisitions. In recent years, those deals have been focused on digital advertising, as companies have shifted more ad spending to the Internet and away from conventional media like print and television.

Publicis bought the online-marketing business Digitas for $1.3 billion in 2007. It bought search-marketing business Performics from Google Inc. in 2008. Last summer, it paid Microsoft Corp. $530 million for Razorfish, the last big digital agency up for grabs.

In 2009 Publicis made more than a quarter of its €4.52 billion ($5.55 billion) revenue from digital ads, more than its Dublin-based rival WPP PLC or U.S behemoth Omnicom Group Inc.—respectively the world's biggest and second-biggest advertising agencies, ahead of No. 3 Publicis.

Industry analysts agree that digital advertising will be a major growth driver. But they say that marketers still need to crack how to make bigger profits by better targeting audiences and measuring the impact of ads.

"The benefit in the short term is that [digital] is faster growing," says Thomas Singlehurst, an analyst at Citigroup. "But are the returns in digital the same as those in traditional marketing services? These are slight unknowns."