http://online.wsj.com/article/SB10001424052748703554204576112723686094898.html?mod=dist_smartbrief
World-wide, revenue from mobile apps is expected to triple this year to $15.1 billion, including paid downloads and advertising revenue generated by free apps, according to research firm Gartner Inc. Besides the potential of making money directly from such creations, more and better apps can help devices powered by Google's Android operating system continue to gain ground on Apple's iPhones and iPads.
Monday, January 31, 2011
Everyday Low Prices Are Moving Merchandise Better Than Coupons, Short-Term Pricing Pacts
http://adage.com/article?article_id=148569
In 70% of package-goods categories last year, at least 30% of merchandise was sold with some kind of promotional support, according to SymphonyIRI; that's up from 60% of categories four years ago. In all, two-thirds of categories saw increased promotional support last year. But average volume lift per merchandising event declined across more than half -- 57% -- of CPG categories last year, according to the research firm.
"We do believe there's a level of promotion fatigue out there," said Susan Viamari, the report's author. "Promotion has been very high in the industry over the past couple of years, even though we did see a moderation in the growth. CPG manufacturers need to evaluate everyday pricing strategies."
The other issue is that consumers remain tightfisted and economically distressed, and promotion isn't changing that, Ms. Viamari said. "Because more than a third of consumers are having trouble buying groceries, that option of stocking up just because something is on special is not a very easy option." More marketers need to tailor their shopper marketing to an individual level, she added, rather than use tactics such as temporary price reductions.
A study by Infegy's Social Radar found on average that 5.3% of social-media mentions of 14 CPG and apparel brands last year referred to deals, discounts or coupons -- and that percentage spiked to 7% to 11% by late in the year, almost double what it had been a year earlier. But all that chatter did not translate into sales gains for most companies.
In 70% of package-goods categories last year, at least 30% of merchandise was sold with some kind of promotional support, according to SymphonyIRI; that's up from 60% of categories four years ago. In all, two-thirds of categories saw increased promotional support last year. But average volume lift per merchandising event declined across more than half -- 57% -- of CPG categories last year, according to the research firm.
"We do believe there's a level of promotion fatigue out there," said Susan Viamari, the report's author. "Promotion has been very high in the industry over the past couple of years, even though we did see a moderation in the growth. CPG manufacturers need to evaluate everyday pricing strategies."
The other issue is that consumers remain tightfisted and economically distressed, and promotion isn't changing that, Ms. Viamari said. "Because more than a third of consumers are having trouble buying groceries, that option of stocking up just because something is on special is not a very easy option." More marketers need to tailor their shopper marketing to an individual level, she added, rather than use tactics such as temporary price reductions.
A study by Infegy's Social Radar found on average that 5.3% of social-media mentions of 14 CPG and apparel brands last year referred to deals, discounts or coupons -- and that percentage spiked to 7% to 11% by late in the year, almost double what it had been a year earlier. But all that chatter did not translate into sales gains for most companies.
Cheil Struggles to Escape From Shadow of Samsung
http://adage.com/globalnews/article?article_id=148558
Michael Kim. a candid and charismatic Korean who was president of Cheil USA, took over the global chief operating officer post from Bruce Haines, who starts a new role in Seoul as chief strategy officer. Mr. Kim now oversees Cheil's day-to-day business operations while Mr. Haines will focus on growth through mergers and acquisition. In the last two years, Cheil has scooped up Beattie McGuinness Bungay in the U.K., Barbarian Group in the U.S. (a buy led by Mr. Kim in December 2009), Herezie in France and Open Tide China in Beijing.
Cheil, which is still 15% owned by Samsung, is No. 19 on Ad Age's ranking of the world's top 50 agency companies, with worldwide revenue of $312 million in 2009.
Michael Kim. a candid and charismatic Korean who was president of Cheil USA, took over the global chief operating officer post from Bruce Haines, who starts a new role in Seoul as chief strategy officer. Mr. Kim now oversees Cheil's day-to-day business operations while Mr. Haines will focus on growth through mergers and acquisition. In the last two years, Cheil has scooped up Beattie McGuinness Bungay in the U.K., Barbarian Group in the U.S. (a buy led by Mr. Kim in December 2009), Herezie in France and Open Tide China in Beijing.
Cheil, which is still 15% owned by Samsung, is No. 19 on Ad Age's ranking of the world's top 50 agency companies, with worldwide revenue of $312 million in 2009.
Wednesday, January 26, 2011
Nielsen Holdings and Demand Media IPO today
http://www.marketwatch.com/story/demand-media-nielsen-shares-jump-in-ipos-2011-01-26?siteid=yhoof
Demand Media /quotes/comstock/13*!dmd (DMD 22.99, +5.99, +35.24%) shares jumped nearly 40% to $23.47 as the company began trading on the New York Stock Exchange.
The Santa Monica, Calif.-based company, which publishes and distributes articles and other materials through a net work of Web sites, offered to sell 8.9 million shares at $17, above its initial range of $14 to $16. Meanwhile, shares of Nielsen Holdings /quotes/comstock/13*!nlsn (NLSN 25.69, +2.69, +11.70%) rose more than 9% to $25.10 as the company began trading on the New York Stock Exchange.
The New York-city based company, which tracks and analyzes consumer behavior, offered to sell 71.4 million shares at $23, above its initial range of $20 to $22.
Facebook Zeroes In On Mobile Advertising, Buys Seattle Startup Rel8tion
Considering how big Facebook’s mobile audience is—200 million users and counting, fast—it’s surprising that it’s taken them this long to make a mobile advertising play. But today they’ve started in earnest, with the acquisition of a small Seattle startup focussed on hyperlocal markets called Rel8tion.
Little is known about Rel8tion—at this moment, the company’s website seems to have crashed under the world’s attention following the deal. But a Google cache of the site shows that it gives its users—advertisers—the ability to target campaigns on specific mapped areas based on criteria like Age, Income, Gender, Ethnicity/Race, Education, Marital Status, Employment Status and Career.
http://paidcontent.org/article/419-facebook-zeros-in-on-mobile-advertising-buys-seattle-startup-rel8tion/#
Little is known about Rel8tion—at this moment, the company’s website seems to have crashed under the world’s attention following the deal. But a Google cache of the site shows that it gives its users—advertisers—the ability to target campaigns on specific mapped areas based on criteria like Age, Income, Gender, Ethnicity/Race, Education, Marital Status, Employment Status and Career.
http://paidcontent.org/article/419-facebook-zeros-in-on-mobile-advertising-buys-seattle-startup-rel8tion/#
NSI Marketing Services Acquires RAZOR
NSI Marketing Services, a leader in diversified channel marketing services, today announced that it has acquired RAZOR, a national marketing strategy and customer engagement agency with a focus on utilizing data and customer analytics for sales generating initiatives. The combined company will have an integrated service offering that blends a strong knowledge of strategic customer intelligence and end-to-end execution capabilities that’s unmatched within the industry, the firms said. Terms of the private transaction were not disclosed.
“NSI and RAZOR have strengths and specializations that are complementary, and together we are even better positioned to offer clients a platform of services that doesn’t currently exist in our industry,” said Mark Mantovani, NSI’s president and chief executive officer, who will lead the integrated company as president and CEO.
“We’re excited about the opportunity to marry NSI’s experience in managing outsourced marketing programs and developing interactive sales and marketing tools with RAZOR’s expertise in optimizing customer engagement in digital and traditional media,” Mantovani added. “We believe this will further enhance the firm’s ability to help clients drive overall profitability and ROI for their marketing programs.”
NSI’s clients are a broad array of top global and national brands including Honda/Acura, Anheuser-Busch InBev, Ford Motor Company, Coca-Cola, Microsoft, Cisco, Benjamin Moore, and The North Face.
In addition to its St. Louis headquarters, NSI has offices in New York, Chicago, Los Angeles, and Detroit. RAZOR’s office is in Dallas. The combined company will be one of the ten largest privately-held marketing agencies in the Unites States with more than 475 employees and annual revenues in excess of $70 million.
According to Mantovani, RAZOR’s successful track record for helping clients drive customer transactions is unprecedented – and one of many areas where NSI and RAZOR expect to be able to better serve clients with enhanced resources and expertise. “No company is doing a better job than RAZOR at helping global brands use marketing data to develop strategic insights and drive business with customers,” he said. “The firm has had outstanding growth in a short period, attracting – and positively impacting – an enviable roster of clients.”
RAZOR’s clients include Rent-a-Center, Domino’s Pizza, Wendy’s, Purina, Zipcar and The Cheesecake Factory.
“The integration of NSI and RAZOR can help our clients engage with consumers in new, innovative ways,” said Tom Cole, former president of RAZOR who will remain with the company as an executive vice president. “Both companies have a history of focusing on developing results-driven, measurable marketing campaigns, and together we’ll be a force to reckon with – particularly as we continue to address digital and mobile marketing opportunities. Our goal is to build upon our successes to create exciting opportunities for the company, our clients, and our employees.”
Key management who will be part of the integrated company’s executive committee include: Gary Weller, executive vice president and chief financial officer; Tom Cole, executive vice president and chief development officer; Dave Kirwan, executive vice president, Dallas operations; Tom Millweard, executive vice president and chief of agency services; Andy Arnold, executive vice president of business development; and Michael Harrison, executive vice president and chief strategy officer.
Frontenac Company, a Chicago-based private equity firm, which has a controlling interest in NSI, served as the company’s financial partner.
http://www.nsimarketingservices.com/news/nsi-acquires-razor.html
“NSI and RAZOR have strengths and specializations that are complementary, and together we are even better positioned to offer clients a platform of services that doesn’t currently exist in our industry,” said Mark Mantovani, NSI’s president and chief executive officer, who will lead the integrated company as president and CEO.
“We’re excited about the opportunity to marry NSI’s experience in managing outsourced marketing programs and developing interactive sales and marketing tools with RAZOR’s expertise in optimizing customer engagement in digital and traditional media,” Mantovani added. “We believe this will further enhance the firm’s ability to help clients drive overall profitability and ROI for their marketing programs.”
NSI’s clients are a broad array of top global and national brands including Honda/Acura, Anheuser-Busch InBev, Ford Motor Company, Coca-Cola, Microsoft, Cisco, Benjamin Moore, and The North Face.
In addition to its St. Louis headquarters, NSI has offices in New York, Chicago, Los Angeles, and Detroit. RAZOR’s office is in Dallas. The combined company will be one of the ten largest privately-held marketing agencies in the Unites States with more than 475 employees and annual revenues in excess of $70 million.
According to Mantovani, RAZOR’s successful track record for helping clients drive customer transactions is unprecedented – and one of many areas where NSI and RAZOR expect to be able to better serve clients with enhanced resources and expertise. “No company is doing a better job than RAZOR at helping global brands use marketing data to develop strategic insights and drive business with customers,” he said. “The firm has had outstanding growth in a short period, attracting – and positively impacting – an enviable roster of clients.”
RAZOR’s clients include Rent-a-Center, Domino’s Pizza, Wendy’s, Purina, Zipcar and The Cheesecake Factory.
“The integration of NSI and RAZOR can help our clients engage with consumers in new, innovative ways,” said Tom Cole, former president of RAZOR who will remain with the company as an executive vice president. “Both companies have a history of focusing on developing results-driven, measurable marketing campaigns, and together we’ll be a force to reckon with – particularly as we continue to address digital and mobile marketing opportunities. Our goal is to build upon our successes to create exciting opportunities for the company, our clients, and our employees.”
Key management who will be part of the integrated company’s executive committee include: Gary Weller, executive vice president and chief financial officer; Tom Cole, executive vice president and chief development officer; Dave Kirwan, executive vice president, Dallas operations; Tom Millweard, executive vice president and chief of agency services; Andy Arnold, executive vice president of business development; and Michael Harrison, executive vice president and chief strategy officer.
Frontenac Company, a Chicago-based private equity firm, which has a controlling interest in NSI, served as the company’s financial partner.
http://www.nsimarketingservices.com/news/nsi-acquires-razor.html
Tuesday, January 25, 2011
Streaming ad network TargetSpot raises $8M to jam ads into online radio
TargetSpot, a provider of advertising for online radio services, announced today that it has raised $8 million in its most recent round of fundraising.
The network is geared toward music radio services like CBS Radio and Yahoo Music. Advertisers can purchase 5-, 15- and 30-second spots for online radio networks through TargetSpot. Those ads are streamed through TargetSpot’s software to each online radio service. The company has its own advertising serving technology and gives each advertiser the tools to drop an ad directly into one of their distribution partner’s audio streams.
The network is geared toward music radio services like CBS Radio and Yahoo Music. Advertisers can purchase 5-, 15- and 30-second spots for online radio networks through TargetSpot. Those ads are streamed through TargetSpot’s software to each online radio service. The company has its own advertising serving technology and gives each advertiser the tools to drop an ad directly into one of their distribution partner’s audio streams.
The New York, N.Y.-based company was founded four years ago. It acquired Ronning Lipset Radio, another advertising firm, to become one of the largest radio-centric advertising firms in 2008. Its investors include Union Square Ventures, Bain Capital Ventures, CBS Radio and Milestone Venture Partners.
http://venturebeat.com/2011/01/11/targetspot-funding-seriesa/#
http://venturebeat.com/2011/01/11/targetspot-funding-seriesa/#
In the In-Box, More Retail Promotions
Large retailers sent 15 percent more promotional e-mails per subscriber in 2010 than in 2009, according to Responsys, an online marketing firm. Responsys arrived at the figure by setting up dummy accounts to track the e-mail marketing practices of some 100 of the largest online retailers.
Retailers have been stepping up their reliance on promotional e-mail for years; the volume of e-mail sent per subscriber has increased by double-digit percentages every year since 2006, when Chad White, the research director at Responsys, began collecting data.
Mr. White said that some of this increase was offset by a decline in the amount of catalogs and direct mail sent by marketers. But he added that this e-mail blizzard, while profitable in the short term, could be overkill. “Subscribers might either opt out or they’ll tune out, or, worst of all, they might file a spam complaint,” he said.
http://www.nytimes.com/2011/01/10/business/media/10drill.html?_r=1&nl=business&emc=ata3&pagewanted=print
Retailers have been stepping up their reliance on promotional e-mail for years; the volume of e-mail sent per subscriber has increased by double-digit percentages every year since 2006, when Chad White, the research director at Responsys, began collecting data.
Mr. White said that some of this increase was offset by a decline in the amount of catalogs and direct mail sent by marketers. But he added that this e-mail blizzard, while profitable in the short term, could be overkill. “Subscribers might either opt out or they’ll tune out, or, worst of all, they might file a spam complaint,” he said.
http://www.nytimes.com/2011/01/10/business/media/10drill.html?_r=1&nl=business&emc=ata3&pagewanted=print
Wednesday, January 19, 2011
Social media ad revenue limited, TV to stay ‘super media’: Deloitte
http://www.marketingmag.ca/news/media-news/social-media-ad-revenue-limited-tv-to-stay-%e2%80%98super-media%e2%80%99-deloitte-21395
Although social networks like Facebook are expected to surpass one billion unique members and serve up more than two trillion ads this year, their ad revenues will remain “relatively modest” compared with other forms of media, says a new report from Deloitte Canada.
In its 10th annual TMT Predictions report (technology, media and telecommunications), Deloitte noted that while global social media advertising revenues will hit US$5 billion this year, they would account for less than 1% of all worldwide ad spending.
Deloitte noted that social networks would still achieve “impressive” gross margins, but their low revenues of about $4 a year per member will prevent them from achieving revenues similar to traditional media and other forms of online advertising.
Elsewhere, Deloitte predicted that TV would strengthen its “super media” status in 2011, with the global audience growing by 40 million to 3.7 billion and boosting worldwide viewing by an astounding 140 billion hours from 2010. That will translate into an additional $10 billion in global ad revenues.
TV shows will be the most common topic of conversation around the world and the subject of more than one billion tweets, Deloitte predicted.
“In short, television will likely continue to command a growing share of the world’s attention and wallets and will retain its leadership among all media in terms of total revenues” including ad sales, subscriptions, pay-per-view and license fees, said the Deloitte report.
Although social networks like Facebook are expected to surpass one billion unique members and serve up more than two trillion ads this year, their ad revenues will remain “relatively modest” compared with other forms of media, says a new report from Deloitte Canada.
In its 10th annual TMT Predictions report (technology, media and telecommunications), Deloitte noted that while global social media advertising revenues will hit US$5 billion this year, they would account for less than 1% of all worldwide ad spending.
Deloitte noted that social networks would still achieve “impressive” gross margins, but their low revenues of about $4 a year per member will prevent them from achieving revenues similar to traditional media and other forms of online advertising.
Elsewhere, Deloitte predicted that TV would strengthen its “super media” status in 2011, with the global audience growing by 40 million to 3.7 billion and boosting worldwide viewing by an astounding 140 billion hours from 2010. That will translate into an additional $10 billion in global ad revenues.
TV shows will be the most common topic of conversation around the world and the subject of more than one billion tweets, Deloitte predicted.
“In short, television will likely continue to command a growing share of the world’s attention and wallets and will retain its leadership among all media in terms of total revenues” including ad sales, subscriptions, pay-per-view and license fees, said the Deloitte report.
MagnaGlobal Sees TV Up 6.8% in 2011
http://www.broadcastingcable.com/article/462600-MagnaGlobal_Sees_TV_Up_6_8_in_2011.php
Media buyer MagnaGlobal says that while economic challenges persist, it expects national TV advertising to increase by 6.8% in 2011.
The new forecast is an increase from an earlier forecast of a 5.8% gain.
Overall MagnaGlobal says ad spending rose 3.1% in 2010, up from an earlier estimate of 2.8%, and will be up a similar amount in 2011, excluding the impact of the Olympics and the elections. Including the impact of politics and the Olympics, total advertising will grow by only 1.9%, compared to 4.3% in 2010.
Some traditional media are weakening, including newspapers, magazines, directories, and direct mail. Gaining ground are digital, broadcast and outdoor media.
"Interest in mobile advertising has been catalyzed among large advertisers over the past year, and we expect growth of 60.1% during 2011. Online video has achieved meaningful scale, and is now commonly used by a wide range of advertisers; growth should approximate 26.8% this year. Emerging outdoor media will also outpace the rest of the outdoor industry as inventory is increasingly monetized; we expect the sub-sector to grow by 17.4%," the MagnaGlobal report says.
"Alongside these trends, traditional TV and older forms of digital media will continue to grow rapidly. We expect TV advertising to rise by 6.3% on a normalized basis during 2011 and digital display to grow by 11.6%. Paid search will also fare well, rising by 11.1% during the same period," the agency says.
Media buyer MagnaGlobal says that while economic challenges persist, it expects national TV advertising to increase by 6.8% in 2011.
The new forecast is an increase from an earlier forecast of a 5.8% gain.
Overall MagnaGlobal says ad spending rose 3.1% in 2010, up from an earlier estimate of 2.8%, and will be up a similar amount in 2011, excluding the impact of the Olympics and the elections. Including the impact of politics and the Olympics, total advertising will grow by only 1.9%, compared to 4.3% in 2010.
Some traditional media are weakening, including newspapers, magazines, directories, and direct mail. Gaining ground are digital, broadcast and outdoor media.
"Interest in mobile advertising has been catalyzed among large advertisers over the past year, and we expect growth of 60.1% during 2011. Online video has achieved meaningful scale, and is now commonly used by a wide range of advertisers; growth should approximate 26.8% this year. Emerging outdoor media will also outpace the rest of the outdoor industry as inventory is increasingly monetized; we expect the sub-sector to grow by 17.4%," the MagnaGlobal report says.
"Alongside these trends, traditional TV and older forms of digital media will continue to grow rapidly. We expect TV advertising to rise by 6.3% on a normalized basis during 2011 and digital display to grow by 11.6%. Paid search will also fare well, rising by 11.1% during the same period," the agency says.
PARETO IN DISCUSSIONS TO BE ACQUIRED BY THE RIVERSIDE COMPANY
http://finance.yahoo.com/news/PARETO-IN-DISCUSSIONS-TO-BE-cnw-2871803889.html?x=0&.v=1
Pareto Corporation (Toronto:PTO.TO) ("Pareto" or "the Company"), a leading Shopper Marketing company, today announced that it is engaged in exclusive discussions with an affiliate of The Riverside Company regarding the potential sale of the Company to The Riverside Company, the terms and conditions of which are still being discussed and are subject to final Board approvals. No definitive offer has been made at this point and, in the event of an offer, there can be no assurances that a final agreement will be reached. The Company expects an offer, if received, would be at a price of $2.72 per common share.
Pareto Corporation (Toronto:PTO.TO) ("Pareto" or "the Company"), a leading Shopper Marketing company, today announced that it is engaged in exclusive discussions with an affiliate of The Riverside Company regarding the potential sale of the Company to The Riverside Company, the terms and conditions of which are still being discussed and are subject to final Board approvals. No definitive offer has been made at this point and, in the event of an offer, there can be no assurances that a final agreement will be reached. The Company expects an offer, if received, would be at a price of $2.72 per common share.
Assuming successful completion of the acquisition, it has been agreed that the Company's executive team will remain in place and contribute as significant investors in the newly formed private company.
Adobe Beefs Up Its Ad Targeting by Acquiring Demdex
Demdex’s technology will be added to Adobe’s Omniture products. Demdex pulls audience data from a number of sources, including your website, advertising campaigns, and data sellers, so that advertisers can target their ads to a specific group. In its press release, Adobe emphasizes how important this kind of audience targeting is becoming for publishers and advertisers.
The terms of the deal were not disclosed. Demdex last raised $6 million in funding from Shasta Ventures, First Round Capital, and Genacast Ventures.
http://www.nytimes.com/external/venturebeat/2011/01/18/18venturebeat-adobe-beefs-up-its-ad-targeting-by-acquiring-44054.html?nl=business&emc=dlbka34
The terms of the deal were not disclosed. Demdex last raised $6 million in funding from Shasta Ventures, First Round Capital, and Genacast Ventures.
http://www.nytimes.com/external/venturebeat/2011/01/18/18venturebeat-adobe-beefs-up-its-ad-targeting-by-acquiring-44054.html?nl=business&emc=dlbka34
Monday, January 17, 2011
Direct, digital ad spending to rise
http://www.btobonline.com/article/20110114/FREE/301149996/report-direct-digital-ad-spending-to-rise
Direct and digital advertising expenditures in the U.S. will increase by 6.2% this year compared to last year, to $163.9 billion, according to a new report from marketing consultancy Winterberry Group. Of that total, direct mail spending will grow 5.8%, to $47.8 billion this year.
According to Winterberry's report, "Outlook 2011: What to Expect in Direct & Digital Marketing," this represents an acceleration of expenditures over 2010. Winterberry reported that the $154.4 billion spent on direct and digital advertising last year represented just a 2.7% increase over 2009. Digital advertising accounted for $27.7 billion of that amount, with spending on digital display advertising rising 10.7% year-over-year.
Direct response print advertising spending, which suffered a 3.6% decline, was the only direct marketing segment to see a decrease last year.
Winterberry projects this year that digital and direct spending will grow in all categories: Digital will be up 14%, followed by insert media (9.1%), direct-response broadcast (7.6%), direct mail (5.8%) and direct-response print (2%).
Direct and digital advertising expenditures in the U.S. will increase by 6.2% this year compared to last year, to $163.9 billion, according to a new report from marketing consultancy Winterberry Group. Of that total, direct mail spending will grow 5.8%, to $47.8 billion this year.
According to Winterberry's report, "Outlook 2011: What to Expect in Direct & Digital Marketing," this represents an acceleration of expenditures over 2010. Winterberry reported that the $154.4 billion spent on direct and digital advertising last year represented just a 2.7% increase over 2009. Digital advertising accounted for $27.7 billion of that amount, with spending on digital display advertising rising 10.7% year-over-year.
Direct response print advertising spending, which suffered a 3.6% decline, was the only direct marketing segment to see a decrease last year.
Winterberry projects this year that digital and direct spending will grow in all categories: Digital will be up 14%, followed by insert media (9.1%), direct-response broadcast (7.6%), direct mail (5.8%) and direct-response print (2%).
Thursday, January 13, 2011
Ad pages stabilize
Business-oriented print advertising pages stabilized in 2010 compared with the ad page freefall of 2009, according to reports released this week by American Business Media and MPA.
B2b advertising pages increased slightly in October compared with the year-earlier period, according to Business Information Network data released by American Business Media. Ad pages increased 0.6% to 57,045 in October. For the January-October 2010 period, ad pages declined 3.5% compared with the year-earlier period.
In October, five of 21 advertising categories posted double-digit gains: transportation and logistics (32.3%); miscellaneous (24.2%); automotive (18.8%); banking, finance and insurance (14.5%); and manufacturing and processing (12.1%). For the January-October period, only four categories posted any gains: automotive (7.1%), miscellaneous (4.1%), healthcare (1.3%) and agriculture (1.0%).
Consumer magazine advertising pages declined 0.1% last year compared with 2009, according to Publishers Information Bureau data released by MPA. However, for the fourth quarter ad pages surged 3.5% compared with the year-earlier period.
http://www.btobonline.com/article/20110111/MEDIABUSINESS/301119999/ad-pages-stabilize
Jon Bond invests in Big Fuel Communications and joins as CEO
http://adage.com/agencynews/article?article_id=148158
Mr. Bond will work closely with Avi Savar, Big Fuel's current CEO and founder, who will now focus on the agency's content development and thought leadership. Big Fuel's clients include General Motors, McDonald's Corp., Mattel's Fisher-Price, Gore-Tex, Budweiser and Colgate-Palmolive. The shop has plans for rapid expansion and aims to hire 200 employees in the early part of the year.
The move to Big Fuel is surprising for Mr. Bond, considering that only seven months ago he set out to build a new marketing-services entity, dubbed Tomorrow, to rival Kirshenbaum parent MDC Partners and other holding companies. Mr. Bond said Tomorrow, which invested in companies such as Klout and crowdsourcing shop Victors & Spoils, will no longer exist in its current form.
In other words, Big Fuel is looking to partner with companies whose capabilities are related only to social media. Mr. Bond said there are a few acquisition targets the agency is considering, such as companies that offer proprietary technology, for instance.
Mr. Bond will work closely with Avi Savar, Big Fuel's current CEO and founder, who will now focus on the agency's content development and thought leadership. Big Fuel's clients include General Motors, McDonald's Corp., Mattel's Fisher-Price, Gore-Tex, Budweiser and Colgate-Palmolive. The shop has plans for rapid expansion and aims to hire 200 employees in the early part of the year.
The move to Big Fuel is surprising for Mr. Bond, considering that only seven months ago he set out to build a new marketing-services entity, dubbed Tomorrow, to rival Kirshenbaum parent MDC Partners and other holding companies. Mr. Bond said Tomorrow, which invested in companies such as Klout and crowdsourcing shop Victors & Spoils, will no longer exist in its current form.
In other words, Big Fuel is looking to partner with companies whose capabilities are related only to social media. Mr. Bond said there are a few acquisition targets the agency is considering, such as companies that offer proprietary technology, for instance.
Omnicom Adds to Its Repertoire in Brand Licensing
http://www.nytimes.com/2011/01/12/business/media/12adco.html?_r=1&src=busln
On Wednesday, Omnicom plans to announce that its Diversified Agency Services division is acquiring Nancy Bailey & Associates, which works for marketers like Procter, Arby’s, Energizer, Nestlé and Pennzoil-Quaker State.
Bailey, which has a total of 12 employees at a headquarters in Atlanta and an office in Miami, will become a division of Beanstalk, which has about 80 employees total at a headquarters in New York and offices in Dearborn, Mich., Hong Kong, London and Los Angeles. The financial terms of the deal are not being disclosed.
On Wednesday, Omnicom plans to announce that its Diversified Agency Services division is acquiring Nancy Bailey & Associates, which works for marketers like Procter, Arby’s, Energizer, Nestlé and Pennzoil-Quaker State.
Bailey, which has a total of 12 employees at a headquarters in Atlanta and an office in Miami, will become a division of Beanstalk, which has about 80 employees total at a headquarters in New York and offices in Dearborn, Mich., Hong Kong, London and Los Angeles. The financial terms of the deal are not being disclosed.
Adknowledge raises more than $200 million
http://www.btobonline.com/article/20110112/FREE/301129995/adknowledge-raises-more-than-200-million
Adknowledge Inc., which runs the BidSystem online advertising marketplace, has raised more than $200 million in debt and equity financing in order to pursue acquisitions. JMI Equity led the equity investment; Bank of America led the debt financing. Adknowledge said it plans to use the funds to further its services in mobile, video, content sites and display advertising for U.S. and international advertisers.
Adknowledge Inc., which runs the BidSystem online advertising marketplace, has raised more than $200 million in debt and equity financing in order to pursue acquisitions. JMI Equity led the equity investment; Bank of America led the debt financing. Adknowledge said it plans to use the funds to further its services in mobile, video, content sites and display advertising for U.S. and international advertisers.
Monday, January 10, 2011
AMP Agency Completes Sale of Assets of its New Jersey and Los Angeles Based Experiential Offices to Brite Media Group
http://www.ampagency.com/pdf/AMP-BRITE-JOINTPR-4'11FINALDRAFT.pdf
AMP Agency, a full service experiential and digital marketing company owned by Alloy Media and Marketing and Brite Media Group LLC, a leading non-traditional OOH media company, announced today the completion of the sale of AMP’s New Jersey and Los Angeles experiential marketing offices to Brite Media Group. The New Jersey and Los Angeles offices of AMP Agency were solely focused on experiential marketing services and will operate under the name Brite Promotions LLC.
AMP Agency, a full service experiential and digital marketing company owned by Alloy Media and Marketing and Brite Media Group LLC, a leading non-traditional OOH media company, announced today the completion of the sale of AMP’s New Jersey and Los Angeles experiential marketing offices to Brite Media Group. The New Jersey and Los Angeles offices of AMP Agency were solely focused on experiential marketing services and will operate under the name Brite Promotions LLC.
Nielsen Holdings Sets Price for IPO at $20 to $22 Each
http://www.bloomberg.com/news/2011-01-10/nielsen-sets-price-for-tv-rating-company-s-offering-at-20-to-22-a-share.html?cmpid=yhoo
The market-research company is pressing ahead with the IPO as buyout firms bet a rebound in equity values will increase demand for some of the debt-fueled acquisitions completed as credit markets started to freeze four years ago.
Nielsen is going public four years after it was acquired by a group of six leveraged buyout firms. AlpInvest Partners NV of Amsterdam and San Francisco-based Hellman & Friedman LLC also own stakes in Nielsen. The company, which changed its name from VNU Group BV in 2007, has operations in more than 100 countries and measures audiences across TV, radio, websites and mobile phones and provides brand and market-research services.
The market-research company is pressing ahead with the IPO as buyout firms bet a rebound in equity values will increase demand for some of the debt-fueled acquisitions completed as credit markets started to freeze four years ago.
Nielsen is going public four years after it was acquired by a group of six leveraged buyout firms. AlpInvest Partners NV of Amsterdam and San Francisco-based Hellman & Friedman LLC also own stakes in Nielsen. The company, which changed its name from VNU Group BV in 2007, has operations in more than 100 countries and measures audiences across TV, radio, websites and mobile phones and provides brand and market-research services.
GSI Commerce buys ClearSaleing
GSI Commerce Inc. said Monday that its Global Marketing Services division has acquired ClearSaleing Inc. for an undisclosed sum.
ClearSaleing of Columbus, Ohio, provides online marketers with tools to analyze the effectiveness of their campaigns. ClearSaleing will operate as a wholly owned subsidiary of GSI’s
Global Marketing Services division, which includes seven other companies. Deann Harvey, chief sales officer of GSI’s Global Marketing Services division, will be its chief revenue officer.
GSI (NASDAQ:GSIC) provides a wide range of e-commerce and digital marketing services to brand manufacturers, retailers, sports teams and leagues, and entertainment properties. It’s based in King of Prussia, Pa.
http://www.bizjournals.com/philadelphia/news/2011/01/10/gsi-commerce-buys-clearsaleing.html?ana=yfcpc
ClearSaleing of Columbus, Ohio, provides online marketers with tools to analyze the effectiveness of their campaigns. ClearSaleing will operate as a wholly owned subsidiary of GSI’s
Global Marketing Services division, which includes seven other companies. Deann Harvey, chief sales officer of GSI’s Global Marketing Services division, will be its chief revenue officer.
GSI (NASDAQ:GSIC) provides a wide range of e-commerce and digital marketing services to brand manufacturers, retailers, sports teams and leagues, and entertainment properties. It’s based in King of Prussia, Pa.
http://www.bizjournals.com/philadelphia/news/2011/01/10/gsi-commerce-buys-clearsaleing.html?ana=yfcpc
US Online Ad Spending to grow 13.9% in 2010
After 2009’s downslide, US online ad spending in 2010 will rise by 13.9%, reaching a record $25.8 billion. But records are made to be broken. In each of the following four years, internet ad spending will hit new peaks, passing $30 billion in 2012 and breaking the $40 billion barrier in 2014.
Another milestone: For the first time, online ad spending will surpass newspaper advertising, which eMarketer estimates at $25.7 billion for 2010. That makes internet advertising second only to TV among measured media.
http://www.emarketer.com/Report.aspx?code=emarketer_2000725
Another milestone: For the first time, online ad spending will surpass newspaper advertising, which eMarketer estimates at $25.7 billion for 2010. That makes internet advertising second only to TV among measured media.
http://www.emarketer.com/Report.aspx?code=emarketer_2000725
How Agencies Are Structuring for Shopper Marketing
http://adage.com/article?article_id=148051
Manufacturer investment in shopper marketing has roughly doubled over the past five years to $35 billion, according to Booz & Co., and it is expected to continue to expand at an annual rate of roughly 15%, with some funding reallocated from traditional media and trade promotion. (See chart, right.)
"Shopper marketing is at the same stage that digital was at in the '90s," said Carl Hartman, WPP global team leader. "Everyone got all hot and bothered about digital, and then it turned out to be banner ads." Today, he said, "Everybody knows that reaching consumers at the point of purchase is an important place to reach them. So you have a video screen on a shopping cart. Is that really the big bang?"
Manufacturer investment in shopper marketing has roughly doubled over the past five years to $35 billion, according to Booz & Co., and it is expected to continue to expand at an annual rate of roughly 15%, with some funding reallocated from traditional media and trade promotion. (See chart, right.)
"Shopper marketing is at the same stage that digital was at in the '90s," said Carl Hartman, WPP global team leader. "Everyone got all hot and bothered about digital, and then it turned out to be banner ads." Today, he said, "Everybody knows that reaching consumers at the point of purchase is an important place to reach them. So you have a video screen on a shopping cart. Is that really the big bang?"
Access 360 Media announces new round of financing
http://www.btobonline.com/article/20110105/FREE/301059997/access-360-media-announces-new-round-of-financing
Access 360 Media, an out-of-home advertising network, has raised a $12 million round of Series C financing led by Columbia Capital.
Additionally, sources close to the company said that investors have committed as much as $50 million to finance acquisitions. Access 360 Media said it operates 20,000 screens in about 100 locations such as sports arenas and shopping malls.
Access 360 Media, an out-of-home advertising network, has raised a $12 million round of Series C financing led by Columbia Capital.
Additionally, sources close to the company said that investors have committed as much as $50 million to finance acquisitions. Access 360 Media said it operates 20,000 screens in about 100 locations such as sports arenas and shopping malls.
Friday, January 7, 2011
[X+1] gets funding
X+1] gained $10 million in a second round of financing, with investors led by Intel Capital, the global investment arm of Intel Corp. Existing investors Advanced Technology Ventures, Blue Chip Venture Co. and Hudson Venture Partners also participated. [X+1] said it will invest in its digital marketing hub, which drives multichannel audience targeting.
http://www.btobonline.com/article/20110106/FREE/301069996/centro-x-1-gain-funding
http://www.btobonline.com/article/20110106/FREE/301069996/centro-x-1-gain-funding
Centro gains funding
Centro, in its first-ever round of funding, raised $22.5 million from investment firm FTV Capital. Centro said it will invest the funds in its Transis media-buying software, which debuted last March. The company added that it will increase the size of its sales force.
http://www.btobonline.com/article/20110106/FREE/301069996/centro-x-1-gain-funding
http://www.btobonline.com/article/20110106/FREE/301069996/centro-x-1-gain-funding
Millennial Media Raises $27.5M to Go Up Against Google, Apple
With nearly $30 million in new funding, it looks like No. 3 mobile advertising network Millennial Media is going to stay solo for now -- even though its major competitors are Google and Apple.
The 4-year-old mobile ad network says it tripled revenue in 2010, which was a banner year for mobile advertising across the board. While a spokeswoman declined to provide specific revenue figures, research firm IDC puts Millennial's gross revenue for 2010 at $60 million. That places Millennial third in U.S. mobile display with 15.4% market share behind Google's 19% and Apple's 18.8%.
The Baltimore-based company today has announced an additional $27.5 million in growth equity funding, with participation from Bessemer Venture Partners, Columbia Capital and Charles River Ventures. That brings funding to date to $65 million.
Under CEO Paul Palmieri, the company plans to build out its 2010 acquisition TapMetrics, an analytics company, and pursue further deals with the new round. While smartphone leaders Google and Apple have bought up mobile ad networks, rumors have circulated that Microsoft, which is lagging in the mobile ads race, has been eying Millennial for acquisition.
The funding is yet another sign that mobile ads will continue to grow at a rapid clip into 2011.
The mobile ad market got a jump start more than a year ago when Google and Apple acquired mobile ads networks Admob and Quattro Wireless, respectively. That momentum is expected to continue into 2011 -- the U.S. mobile advertising market is expected to hit $1 billion for the first time in 2011, according to eMarketer.
Wednesday, January 5, 2011
MWW Group Completes Management Led Buy-Out From Interpublic Group
http://finance.yahoo.com/news/MWW-Group-Completes-prnews-3449274446.html?x=0&.v=1
Led by Founder and CEO Michael W. Kempner, the buy-out occurs ten years following the original sale of MWW to IPG and returns the firm to its status as one of the nation's five largest independent public relations agencies. The buy-out also includes the purchase of MWW's Financial Relations Board, a national leader in investor relations and financial communications for more than 45 years.
MWW is one of the nation's top full service agencies and one of the largest mid-sized firms with industry-leading practice areas in corporate communications, consumer marketing, public affairs and government relations, and deep expertise in digital and social media, sustainability, social innovation, healthcare and technology. The buy-out enables the firm to capitalize on the growth opportunities presented by the dynamic changes in the public relations industry by providing a nimble, entrepreneurial management framework that enables investment in key growth areas including digital and social media – an area where MWW has been a leader since becoming one of the first public relations agencies to establish a formal digital media practice in January of 2005.
Led by Founder and CEO Michael W. Kempner, the buy-out occurs ten years following the original sale of MWW to IPG and returns the firm to its status as one of the nation's five largest independent public relations agencies. The buy-out also includes the purchase of MWW's Financial Relations Board, a national leader in investor relations and financial communications for more than 45 years.
MWW is one of the nation's top full service agencies and one of the largest mid-sized firms with industry-leading practice areas in corporate communications, consumer marketing, public affairs and government relations, and deep expertise in digital and social media, sustainability, social innovation, healthcare and technology. The buy-out enables the firm to capitalize on the growth opportunities presented by the dynamic changes in the public relations industry by providing a nimble, entrepreneurial management framework that enables investment in key growth areas including digital and social media – an area where MWW has been a leader since becoming one of the first public relations agencies to establish a formal digital media practice in January of 2005.
Context Optional Acquires Buzzeo, Leading Platform for Creating Facebook Applications
http://www.contextoptional.com/company/press-releases/3090-press-release-context-optional-acquires-buzzeo-leading-platform-for-creating-facebook-applications
Context Optional, the social marketing company, today announced the acquisition of unwrap, inc., makers of Buzzeo. The move expands Context Optional’s leadership position in providing comprehensive social marketing solutions for brands. The Buzzeo platform enables companies to engage customers on Facebook with a variety of easy-to-deploy applications including e-commerce virtual goods, polls and product listings, among others. The company’s app platform is a natural complement to Context Optional’s Social Marketing Suite, a highly customizable, feature-rich SaaS solution that integrates publishing, moderation, analytics and app-building into a single tool. As part of the acquisition, the Buzzeo team, including co-founders Waynn Lue and Joshua Reeves, will be joining Context Optional and taking on leadership roles in product development, marketing and engineering. Buzzeo will remain a standalone product and now be offered to customers free of charge.
Context Optional, the social marketing company, today announced the acquisition of unwrap, inc., makers of Buzzeo. The move expands Context Optional’s leadership position in providing comprehensive social marketing solutions for brands. The Buzzeo platform enables companies to engage customers on Facebook with a variety of easy-to-deploy applications including e-commerce virtual goods, polls and product listings, among others. The company’s app platform is a natural complement to Context Optional’s Social Marketing Suite, a highly customizable, feature-rich SaaS solution that integrates publishing, moderation, analytics and app-building into a single tool. As part of the acquisition, the Buzzeo team, including co-founders Waynn Lue and Joshua Reeves, will be joining Context Optional and taking on leadership roles in product development, marketing and engineering. Buzzeo will remain a standalone product and now be offered to customers free of charge.
Involver Celebrates 100,000 Customers with $8 Million Series C Funding Round
Involver Inc., the web’s most widely used social-media platform, announced today that it has surpassed 100,000 customers and closed an $8M series C funding round, led by venture firm Bessemer Venture Partners. Existing investors Cervin Ventures and Western Technology Investment also participated. The new capital will be used to fuel Involver’s growth initiatives and continue to expand the company’s social marketing platform.
http://www.involver.com/press-releases/oct-14-2010/
http://www.involver.com/press-releases/oct-14-2010/
Forrester: 2011: Now Social Media Marketing Gets Tough
New social spam filters will stop many of your tweets and status updates from reaching consumers
Growing mistrust will make it harder to gather friends and followers or get them engaged in your social programs
The most successful marketing programs won’t be contained within Facebook
http://blogs.forrester.com/augie_ray/11-01-04-2011_social_media_predictions_now_social_media_marketing_gets_tough
http://www.forrester.com/rb/Research/2011_now_social_media_marketing_gets_tough/q/id/57771/t/2
Growing mistrust will make it harder to gather friends and followers or get them engaged in your social programs
The most successful marketing programs won’t be contained within Facebook
http://blogs.forrester.com/augie_ray/11-01-04-2011_social_media_predictions_now_social_media_marketing_gets_tough
http://www.forrester.com/rb/Research/2011_now_social_media_marketing_gets_tough/q/id/57771/t/2
Buddy Media Closes $23 Million Series C to Fund Massive Expansion
http://www.buddymedia.com/newsroom/2010/10/buddy-media-announces-23-million-series-c-funding/
Buddy Media, the Facebook management system of choice for seven of the ten world’s largest advertisers, today announced it has raised $23 million in Series C funding to fuel its continued growth.
Institutional Venture Partners (IVP), which has funded many of the best known digital brands like Netflix, Twitter and Zynga, led the new round and was joined by existing Buddy Media investors, including Softbank Capital, Greycroft Partners and Bay Partners.
Buddy Media’s Facebook management system, The Buddy Media Platform, is web-based marketing software that provides companies global scale, secure architecture and straightforward administrative tools to connect with their current and future customers using the power of Facebook’s 550-million strong and growing social network.
Buddy Media, the Facebook management system of choice for seven of the ten world’s largest advertisers, today announced it has raised $23 million in Series C funding to fuel its continued growth.
Institutional Venture Partners (IVP), which has funded many of the best known digital brands like Netflix, Twitter and Zynga, led the new round and was joined by existing Buddy Media investors, including Softbank Capital, Greycroft Partners and Bay Partners.
Buddy Media’s Facebook management system, The Buddy Media Platform, is web-based marketing software that provides companies global scale, secure architecture and straightforward administrative tools to connect with their current and future customers using the power of Facebook’s 550-million strong and growing social network.
R.R. Donnelley buys online real estate marketing company
http://www.btobonline.com/article/20110104/FREE/110109983/r-r-donnelley-buys-online-real-estate-marketing-company
R.R. Donnelley & Sons Co. has acquired 8touches.com, a provider of online marketing solutions for the real estate industry.
Donnelley said the acquisition would expand its portfolio of Internet-based solutions, in particular its software development and distribution services, as well as add targeted applications for additional industries and vertical segments. Terms of the deal were not disclosed.
R.R. Donnelley & Sons Co. has acquired 8touches.com, a provider of online marketing solutions for the real estate industry.
Donnelley said the acquisition would expand its portfolio of Internet-based solutions, in particular its software development and distribution services, as well as add targeted applications for additional industries and vertical segments. Terms of the deal were not disclosed.
Tuesday, January 4, 2011
Display in 2011: The Future Belongs to Google
http://www.clickz.com/clickz/news/1934048/display-2011-future-belongs-google
After three years of intense R&D -- and even more intense M&A -- the company now owns large swaths of display media's plumbing. It's on pace to capture $2.5 billion in display ad revenue in 2010, making short work of CEO Eric Schmidt's 2009 pledge to turn display into Google's "next billion-dollar business." But that's just the tip of the iceberg.
Agency groups ZenithOptimedia and GroupM both predict online ad spending will grow significantly next year, and researcher eMarketer projects display spending will expand from $8.9 billion this year to $15.9 billion in 2014 (though it will still trail search spending). As that tide surges, it's evident to many that Google has rigged its boat to rise more swiftly than its rivals.
Google's product stack includes ad management leader DoubleClick; a year-old ad exchange that is already dominant in real-time bidding; demand-side platform Invite Media; creative optimization platform Teracent; and incubated products like Display Ad Builder, which lets small search advertisers roll out display media campaigns in minutes. Its ad network now exceeds the reach of previous ad network leaders AOL and Yahoo, according to comScore.
One likely area of investment is data aggregation, a potentially large revenue source but also a sensitive category in light of Federal regulators' current interest in online ad targeting. Another is ad verification, which helps advertisers guarantee their campaigns meet campaign specifications and honor website block lists.
After three years of intense R&D -- and even more intense M&A -- the company now owns large swaths of display media's plumbing. It's on pace to capture $2.5 billion in display ad revenue in 2010, making short work of CEO Eric Schmidt's 2009 pledge to turn display into Google's "next billion-dollar business." But that's just the tip of the iceberg.
Agency groups ZenithOptimedia and GroupM both predict online ad spending will grow significantly next year, and researcher eMarketer projects display spending will expand from $8.9 billion this year to $15.9 billion in 2014 (though it will still trail search spending). As that tide surges, it's evident to many that Google has rigged its boat to rise more swiftly than its rivals.
Google's product stack includes ad management leader DoubleClick; a year-old ad exchange that is already dominant in real-time bidding; demand-side platform Invite Media; creative optimization platform Teracent; and incubated products like Display Ad Builder, which lets small search advertisers roll out display media campaigns in minutes. Its ad network now exceeds the reach of previous ad network leaders AOL and Yahoo, according to comScore.
One likely area of investment is data aggregation, a potentially large revenue source but also a sensitive category in light of Federal regulators' current interest in online ad targeting. Another is ad verification, which helps advertisers guarantee their campaigns meet campaign specifications and honor website block lists.
Dachis Group gets $30M to advance social consulting
http://venturebeat.com/2011/01/03/dachis-group-gets-30m-to-advance-social-consulting/#
The world’s largest social consultancy, Dachis Group, got a late Christmas present today, receiving $30 million in second round funding from previous backers Austin Ventures, CEO Jeff Dachis told VentureBeat.
Dachis Group sells software to corporations looking to better use social networking to advance their brands.
It was founded in 2008 by Silicon Valley and “new media” guru Dachis, who is best known for co-founding the then-white hot Web shop Razorfish in 1995.
Dachis has been adamant in the past that his new company is not just a consultancy but instead focuses on three key themes: social business strategy, social business engagement and social business intelligence, to help businesses navigate an “increasingly connected social world” to become “social businesses.”
The two-year-old shop has parlayed that “everything that can be social, will be” philosophy into building a stable of marquee-name clients at a scorching pace.
Dachis Group has been snapping up social-business consultancies along the way, including acquiring Portland, Ore.-based Xplane, an information-design consultancy in April, after its first, $50 million round of funding from Austin Ventures in June of 2008.
It also put some of that money to work last month when it grabbed Austin-based Powered, which creates social marketing programs for more than 200 customers, its seventh acquisition since its founding.
The company currently has 300 clients, including Microsoft, American Express, AOL, AT&T, Bud Light, Calvin Klein, Chevrolet, Chrysler, Cisco, Citibank, The Coca-Cola Company, McDonald’s, HBO and Procter and Gamble.
It also estimates it services 15 percent of the Fortune 500 and operates the largest Facebook Preferred Developer services group in the world through its subsidiaries.
Dachis said it would use the money to grow most areas of its business, including attracting new talent and investing in process development, knowledge sharing systems and quality control.
It will also be aiming to expand its international presence: Dachis Group has 220 employees in offices in 10 cities across five countries, including New York, Philadelphia, Portland, London, Sydney, Amsterdam and Madrid.
The world’s largest social consultancy, Dachis Group, got a late Christmas present today, receiving $30 million in second round funding from previous backers Austin Ventures, CEO Jeff Dachis told VentureBeat.
Dachis Group sells software to corporations looking to better use social networking to advance their brands.
It was founded in 2008 by Silicon Valley and “new media” guru Dachis, who is best known for co-founding the then-white hot Web shop Razorfish in 1995.
Dachis has been adamant in the past that his new company is not just a consultancy but instead focuses on three key themes: social business strategy, social business engagement and social business intelligence, to help businesses navigate an “increasingly connected social world” to become “social businesses.”
The two-year-old shop has parlayed that “everything that can be social, will be” philosophy into building a stable of marquee-name clients at a scorching pace.
Dachis Group has been snapping up social-business consultancies along the way, including acquiring Portland, Ore.-based Xplane, an information-design consultancy in April, after its first, $50 million round of funding from Austin Ventures in June of 2008.
It also put some of that money to work last month when it grabbed Austin-based Powered, which creates social marketing programs for more than 200 customers, its seventh acquisition since its founding.
The company currently has 300 clients, including Microsoft, American Express, AOL, AT&T, Bud Light, Calvin Klein, Chevrolet, Chrysler, Cisco, Citibank, The Coca-Cola Company, McDonald’s, HBO and Procter and Gamble.
It also estimates it services 15 percent of the Fortune 500 and operates the largest Facebook Preferred Developer services group in the world through its subsidiaries.
Dachis said it would use the money to grow most areas of its business, including attracting new talent and investing in process development, knowledge sharing systems and quality control.
It will also be aiming to expand its international presence: Dachis Group has 220 employees in offices in 10 cities across five countries, including New York, Philadelphia, Portland, London, Sydney, Amsterdam and Madrid.
Teradata to acquire Aprimo for $525 million
Data warehousing company Teradata Corp. announced plans to buy marketing software and services company Aprimo Inc. for $525 million.
The acquisition of Aprimo's suite of cloud-based marketing solutions is expected to bolster Teradata's analytics and business intelligence insights culled from stored data.
The deal also will help position Teradata against a key competitor, IBM Corp., which bought marketing management company Unica in August for $480 million.
The Aprimo acquisition is expected to close in the first quarter of 2011, Teradata said.
http://www.zdnet.com/blog/btl/teradata-buys-aprimo-for-525-million/42992
WPP Buys Obama’s Campaign Agency Blue State Digital
http://techcrunch.com/2010/12/30/wpp-buys-obamas-campaign-agency-blue-state-digital/
Blue State Digital, the communications firm responsible for coordinating President Barack Obama’s online fundraising and social networking campaigns in the 2008 election, has been acquired by advertising giant WPP. Terms of the deal were not disclosed.
Blue State Digital is a digital agency that helps form online strategy, and advocacy, membership and fundraising campaigns for nonprofits, educational and cultural institutions, political campaigns and corporate brands. According to a release, Blue State Digital’s revenue has grown more than 30% per year since its founding in 2004 (and the company’s strategy and technology has helped raise $800 million to date).
Blue State Digital’s clients include HBO, The American Red Cross, Harvard University and AT&T. One factor that made BSD appealing to WPP is its proprietary technology suite that integrates tools for online fundraising, advocacy, social networking, constituency development, email marketing and content management. The company also consults on web design and strategic communications.
Blue State Digital, the communications firm responsible for coordinating President Barack Obama’s online fundraising and social networking campaigns in the 2008 election, has been acquired by advertising giant WPP. Terms of the deal were not disclosed.
Blue State Digital is a digital agency that helps form online strategy, and advocacy, membership and fundraising campaigns for nonprofits, educational and cultural institutions, political campaigns and corporate brands. According to a release, Blue State Digital’s revenue has grown more than 30% per year since its founding in 2004 (and the company’s strategy and technology has helped raise $800 million to date).
Blue State Digital’s clients include HBO, The American Red Cross, Harvard University and AT&T. One factor that made BSD appealing to WPP is its proprietary technology suite that integrates tools for online fundraising, advocacy, social networking, constituency development, email marketing and content management. The company also consults on web design and strategic communications.
After Two Slow Years, an Industry Rebound Begins
http://www.nytimes.com/2011/01/03/business/media/03adco.html?_r=1&ref=business
Television advertising, whether through integrated-brand campaigns like Microsoft’s or otherwise, has been one of the bright spots as the advertising industry begins to recover from the devastating effects of the recession and marketers experiment with a variety of new ways to reach the audience.
During the financial crisis and its aftermath, most advertisers reduced spending in virtually all forms of media, even those that had been enjoying strong growth in ad revenue. Now, a recovery seems to be taking hold on Madison Avenue and conditions are widely perceived as improving.
According to data from Kantar Media, advertising expenditures for all media for the first half of 2010 increased 5.7 percent from 2009 to about $63.6 billion. Television advertising led the pack in spending because of an increase in demand from the automotive and retail markets, and political advertising.
Spending on advertising in local newspapers showed a significant decline over the last 19 quarters, with a 4.6 percent decrease for the first half of 2010 compared with the same period in 2009, according to data from Kantar Media.
For the first time, advertisers are projected to have spent more on online ads than on newspaper ads in 2010, according to data by eMarketer.
“The bad economy has actually accelerated the shift to digital advertising,” Geoff Ramsey, the chief executive of eMarketer, said in a statement. “Online ads, especially search ads, are increasingly seen by many marketers as a more reliable bet than print ads, which are often difficult to tie to a measurable financial result.”
For brands like Microsoft, Web analytics and research are driving much of the investment into digital media.
Television advertising, whether through integrated-brand campaigns like Microsoft’s or otherwise, has been one of the bright spots as the advertising industry begins to recover from the devastating effects of the recession and marketers experiment with a variety of new ways to reach the audience.
During the financial crisis and its aftermath, most advertisers reduced spending in virtually all forms of media, even those that had been enjoying strong growth in ad revenue. Now, a recovery seems to be taking hold on Madison Avenue and conditions are widely perceived as improving.
According to data from Kantar Media, advertising expenditures for all media for the first half of 2010 increased 5.7 percent from 2009 to about $63.6 billion. Television advertising led the pack in spending because of an increase in demand from the automotive and retail markets, and political advertising.
Spending on advertising in local newspapers showed a significant decline over the last 19 quarters, with a 4.6 percent decrease for the first half of 2010 compared with the same period in 2009, according to data from Kantar Media.
For the first time, advertisers are projected to have spent more on online ads than on newspaper ads in 2010, according to data by eMarketer.
“The bad economy has actually accelerated the shift to digital advertising,” Geoff Ramsey, the chief executive of eMarketer, said in a statement. “Online ads, especially search ads, are increasingly seen by many marketers as a more reliable bet than print ads, which are often difficult to tie to a measurable financial result.”
For brands like Microsoft, Web analytics and research are driving much of the investment into digital media.
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