Despite continuing economic worries, out-of-home advertising revenues grew 4.1% from about $5.86 billion in 2009 to $6.1 billion in 2010, according to the Outdoor Advertising Association of America.
In the fourth quarter, total revenue increased 6.5% to about $1.49 billion. This follows a flat year-over-year performance in the first quarter of 2010, which turned to positive growth later in the year with increases of 3.6% and 7% in the second and third quarters, respectively.
Revenue growth in 2010 was spread across a number of major categories, according to the OAAA, with especially noteworthy increases in media and advertising, up 18.8% to $547 million; financial, up 22.6% to $448 million; and government and political advertising, up 16.2% to $295 million.
http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=145620
Monday, February 28, 2011
MossWarner acquires Rooftop360
http://www.btobonline.com/article/20110225/AGENCIES04/302259996/mosswarner-acquires-rooftop360
B2b marketing agency MossWarner, San Juan Capistrano, Calif., has acquired ad agency Rooftop360, Baltimore. Financial terms were undisclosed. Under the acquisition, Rooftop360's personnel and clients will be integrated into MossWarner's California office, and Rooftop360 CEO Bill Harper will become chief creative officer-West Coast for MossWarner. The Baltimore office will be shuttered. The deal adds such consumer advertising services as strategic planning, media and public relations to MossWarner's existing b2b services.
B2b marketing agency MossWarner, San Juan Capistrano, Calif., has acquired ad agency Rooftop360, Baltimore. Financial terms were undisclosed. Under the acquisition, Rooftop360's personnel and clients will be integrated into MossWarner's California office, and Rooftop360 CEO Bill Harper will become chief creative officer-West Coast for MossWarner. The Baltimore office will be shuttered. The deal adds such consumer advertising services as strategic planning, media and public relations to MossWarner's existing b2b services.
Stake-Taking Tops Buying
The shops need cash to realize their goals faster and are willing to trade some equity to get it. Anomaly and 72andSunny aspire to become global micro networks a la Wieden + Kennedy and Bartle Bogle Hegarty with offices in key hubs like South America, Europe and Asia. After talking to a handful of holding companies and private equity firms, each agency sold a majority stake to MDC, in part because of MDC CEO Miles Nadal’s reputation for being a hands-off owner.
While leaving equity on the table is hardly a new strategy in the realm of mergers and acquisitions, MDC nonetheless deserves “credit for coming up with a way of presenting a package that looks very attractive to certain kinds of entrepreneurs who love their independence and are able to retain it to a very large degree,” said Seth Alpert, a managing director at M&A firm AdMedia Partners in New York. Alpert compared Nadal’s approach of taking majority stakes and leaving equity with principals as “similar to the private equity model, and he ends up with a portfolio. But the key difference is he’s not a re-seller.”
David Jones, global CEO of Havas, which took a 51 percent stake in Socialistic and an estimated 35 percent stake in Camp+King
http://www.adweek.com/aw/content_display/news/agency/e3ic73338f13d826570a8cfcacd3fbe9660#
While leaving equity on the table is hardly a new strategy in the realm of mergers and acquisitions, MDC nonetheless deserves “credit for coming up with a way of presenting a package that looks very attractive to certain kinds of entrepreneurs who love their independence and are able to retain it to a very large degree,” said Seth Alpert, a managing director at M&A firm AdMedia Partners in New York. Alpert compared Nadal’s approach of taking majority stakes and leaving equity with principals as “similar to the private equity model, and he ends up with a portfolio. But the key difference is he’s not a re-seller.”
David Jones, global CEO of Havas, which took a 51 percent stake in Socialistic and an estimated 35 percent stake in Camp+King
http://www.adweek.com/aw/content_display/news/agency/e3ic73338f13d826570a8cfcacd3fbe9660#
Friday, February 18, 2011
Local.com® To Acquire Assets of Rovion, Inc.
http://finance.yahoo.com/news/Localcom-To-Acquire-Assets-of-bw-2145293363.html?x=0&.v=1
Rovion is a rich media advertising company which sells, creates, delivers and tracks rich media advertising including animated and video-based ads for local and national advertisers, including CBS Radio, Cisco and LendingTree. A complete list of advertisers and agencies that have used Rovion advertising products is available at: http://www.rovion.com/clientlist. Rovion has been certified for use by leading sites and ad networks including CBS Television Stations, Citadel Broadcasting Corporation, and AOL Advertising, Inc. (formerly Platform-A, Inc.).
Under the terms of the agreement, Local.com will acquire the assets of Rovion for $1.5 million in cash with an earnout of up to $7 million in cash and/or stock if certain performance criteria are met in the three-year period following the closing. The transaction is subject to customary closing conditions and is expected to close within approximately 90 days.
Rovion is a rich media advertising company which sells, creates, delivers and tracks rich media advertising including animated and video-based ads for local and national advertisers, including CBS Radio, Cisco and LendingTree. A complete list of advertisers and agencies that have used Rovion advertising products is available at: http://www.rovion.com/clientlist. Rovion has been certified for use by leading sites and ad networks including CBS Television Stations, Citadel Broadcasting Corporation, and AOL Advertising, Inc. (formerly Platform-A, Inc.).
Under the terms of the agreement, Local.com will acquire the assets of Rovion for $1.5 million in cash with an earnout of up to $7 million in cash and/or stock if certain performance criteria are met in the three-year period following the closing. The transaction is subject to customary closing conditions and is expected to close within approximately 90 days.
Vitrue Gets $17 Million in Funding and Mike Murphy as Adviser
http://adage.com/digital/article?article_id=148928
The volatile social-media-marketing space is not without competition -- Buddy Media recently got $23 million in funding and Context Optional has been around for almost as long as Vitrue. Both companies work with big brands and agencies. How big is the demand? Big enough for Vitrue to plan to open offices in London, Toronto, Singapore and seven U.S. cities.
Obviously, venture capitalists believe that Vitrue is a good bet, because this last round adds up to more than $32 million in funding for the company that opened its doors in 2006 with investments from Ron Conway, an original investor in Google and Twitter. This last $17 million is led by Scale Venture Partners and Advent Venture Partners.
Facebook software firm Vitrue today announced it has grabbed $17 million in a third round of funding and an a-list adviser -- Mike Murphy, former global ad sales chief of Facebook and current senior adviser to casual games giant Zynga.
The volatile social-media-marketing space is not without competition -- Buddy Media recently got $23 million in funding and Context Optional has been around for almost as long as Vitrue. Both companies work with big brands and agencies. How big is the demand? Big enough for Vitrue to plan to open offices in London, Toronto, Singapore and seven U.S. cities.
Obviously, venture capitalists believe that Vitrue is a good bet, because this last round adds up to more than $32 million in funding for the company that opened its doors in 2006 with investments from Ron Conway, an original investor in Google and Twitter. This last $17 million is led by Scale Venture Partners and Advent Venture Partners.
DMA: Move to digital marketing gathering steam
http://www.btobonline.com/article/20110218/DIRECT10/302189994/dma-move-to-digital-marketing-gathering-steam
U.S. and Canadian marketers are strongly shifting budgets to digital campaigns, as well as to such newer platforms as video, mobile coupons and in-game ads, according to a new report from the Direct Marketing Association.
The DMA's "Digital Marketing in the U.S. and Canada" reported that 72% of U.S. marketers and agencies will increase their online budgets this year, with an average rise in digital marketing expenditures of 71%. Big budgetary shifts also are coming in email marketing (up 53%) and mobile marketing (45%). Traditional channels such as direct mail, TV, radio and print ads all will suffer budget declines this year, according to the study.
Canadian marketers and agencies are somewhat more aggressive in their shift to digital channels, with 79% planning to increase online budgets this year, with an average expenditure increase of 76%.
http://www.the-dma.org/cgi/dispannouncements?article=1528
U.S. and Canadian marketers are strongly shifting budgets to digital campaigns, as well as to such newer platforms as video, mobile coupons and in-game ads, according to a new report from the Direct Marketing Association.
The DMA's "Digital Marketing in the U.S. and Canada" reported that 72% of U.S. marketers and agencies will increase their online budgets this year, with an average rise in digital marketing expenditures of 71%. Big budgetary shifts also are coming in email marketing (up 53%) and mobile marketing (45%). Traditional channels such as direct mail, TV, radio and print ads all will suffer budget declines this year, according to the study.
Canadian marketers and agencies are somewhat more aggressive in their shift to digital channels, with 79% planning to increase online budgets this year, with an average expenditure increase of 76%.
http://www.the-dma.org/cgi/dispannouncements?article=1528
Constant Contact buys social CRM company
http://www.btobonline.com/article/20110218/STRATEGY/302189996/constant-contact-buys-social-crm-company
Constant Contact, which began as an e-newsletter service for small- and midsize businesses, continues to expand its multichannel marketing capabilities with the acquisition of social-media CRM company Bantam Live.
The $15 million all-cash deal for the New York-based Bantam Live will provide Constant Contact with a customer relationship management process that compiles data from social media interactions, as well as from clicks, email opens, survey responses and event participation, the company said.
Through acquisitions over the past year, Constant Contact has added social media monitoring, a survey tool, API integration with sales lead applications and a feature for promoting and managing live events.
Constant Contact, which began as an e-newsletter service for small- and midsize businesses, continues to expand its multichannel marketing capabilities with the acquisition of social-media CRM company Bantam Live.
The $15 million all-cash deal for the New York-based Bantam Live will provide Constant Contact with a customer relationship management process that compiles data from social media interactions, as well as from clicks, email opens, survey responses and event participation, the company said.
Through acquisitions over the past year, Constant Contact has added social media monitoring, a survey tool, API integration with sales lead applications and a feature for promoting and managing live events.
Wednesday, February 16, 2011
Monday, February 14, 2011
R.R. Donnelley buys marketing firm Nimblefish
http://finance.yahoo.com/news/RR-Donnelley-buys-marketing-apf-2825522125.html?x=0&.v=1
Communications company R.R. Donnelley & Sons Co. said Tuesday it has acquired Nimblefish Technologies Inc., a marketing services provider.
Chicago-based R.R. Donnelley said Nimblefish, which is based in San Francisco, will expand options for customers who want to tailor advertising campaigns for specific audiences.
It did not say how much it is paying for the privately held company
Communications company R.R. Donnelley & Sons Co. said Tuesday it has acquired Nimblefish Technologies Inc., a marketing services provider.
Chicago-based R.R. Donnelley said Nimblefish, which is based in San Francisco, will expand options for customers who want to tailor advertising campaigns for specific audiences.
It did not say how much it is paying for the privately held company
JPMorgan to Start Social Media Fund
Hoping to seize upon investor excitement over social networking companies like Facebook, JPMorgan Chase is planning to start a new fund to invest in an array of Internet and new media companies, people briefed on the matter told DealBook on Sunday.
The proposed fund, which will be run by JPMorgan’s asset-management unit, is seeking to raise between $500 million and $750 million from wealthy investors to put into privately held technology companies like Twitter and Groupon, these people said.
The idea is to place bets on companies with established business models and steady revenue before they go public in widely anticipated stock sales.
Several popular social media companies, including the professional social network LinkedIn and the Internet radio company Pandora, have already filed to go public. Those filings presage even more eagerly anticipated stock sales by Groupon and especially Facebook.
JPMorgan plans to buy and sell shares in these companies on behalf of clients, and will not directly invest the firm’s own money, one of these people said. But simply having a ready base of retail investors could give JPMorgan’s investment bank a competitive edge in winning business from the fledgling technology firms.
http://dealbook.nytimes.com/2011/02/13/jpmorgan-to-start-social-media-fund/?nl=business&emc=dlbka9
The proposed fund, which will be run by JPMorgan’s asset-management unit, is seeking to raise between $500 million and $750 million from wealthy investors to put into privately held technology companies like Twitter and Groupon, these people said.
The idea is to place bets on companies with established business models and steady revenue before they go public in widely anticipated stock sales.
Several popular social media companies, including the professional social network LinkedIn and the Internet radio company Pandora, have already filed to go public. Those filings presage even more eagerly anticipated stock sales by Groupon and especially Facebook.
JPMorgan plans to buy and sell shares in these companies on behalf of clients, and will not directly invest the firm’s own money, one of these people said. But simply having a ready base of retail investors could give JPMorgan’s investment bank a competitive edge in winning business from the fledgling technology firms.
http://dealbook.nytimes.com/2011/02/13/jpmorgan-to-start-social-media-fund/?nl=business&emc=dlbka9
Friday, February 11, 2011
THL to Buy Acosta in Deal Said to Be Worth $2 Billion
http://www.bloomberg.com/news/2011-01-05/thl-said-to-plan-2-billion-takeover-of-aea-s-acosta-marketer.html
Thomas H. Lee Partners LP agreed to buy the Acosta food marketing company from private-equity firm AEA Investors LP, as deals between buyout companies rose to a record.
The transaction, which was announced today in a statement from Jacksonville, Florida-based Acosta Sales & Marketing, values the company at more than $2 billion, according to three people briefed on the talks. The purchase is scheduled to close in the next 60 days and there will be no change to the senior management or operations, Acosta said.
The company, which has more than 17,000 associates in 65 locations throughout the U.S. and Canada, is at least the second marketer in two months to announce a switch in private-equity owners. Apax Partners LLP agreed in November to buy a majority of Advantage Sales & Marketing Inc. from J.W. Childs Associates LP and Bank of America Corp.’s private-equity unit. The takeover valued Advantage at about $1.8 billion, a person with knowledge of the transaction said at the time.
Thomas H. Lee Partners LP agreed to buy the Acosta food marketing company from private-equity firm AEA Investors LP, as deals between buyout companies rose to a record.
The transaction, which was announced today in a statement from Jacksonville, Florida-based Acosta Sales & Marketing, values the company at more than $2 billion, according to three people briefed on the talks. The purchase is scheduled to close in the next 60 days and there will be no change to the senior management or operations, Acosta said.
The company, which has more than 17,000 associates in 65 locations throughout the U.S. and Canada, is at least the second marketer in two months to announce a switch in private-equity owners. Apax Partners LLP agreed in November to buy a majority of Advantage Sales & Marketing Inc. from J.W. Childs Associates LP and Bank of America Corp.’s private-equity unit. The takeover valued Advantage at about $1.8 billion, a person with knowledge of the transaction said at the time.
Wednesday, February 9, 2011
Online Ad Spend Continues Double-Digit Growth
http://www.emarketer.com/Article.aspx?R=1008087
eMarketer, which forms its forecast by performing a meta-analysis of research estimates and methodologies from dozens of firms that track ad spending, projects a 10.5% increase in US online ad spending next year, followed by double-digit growth every year through 2014 when spending will reach $40.5 billion.
eMarketer, which forms its forecast by performing a meta-analysis of research estimates and methodologies from dozens of firms that track ad spending, projects a 10.5% increase in US online ad spending next year, followed by double-digit growth every year through 2014 when spending will reach $40.5 billion.
Omnicom Group's Diversified Agency Services (DAS) Acquires Communispace
http://finance.yahoo.com/news/Omnicom-Groups-Diversified-prnews-3160273467.html?x=0&.v=1
Diversified Agency Services (DAS), a division of Omnicom Group Inc. (NYSE:OMC - News), announced today that it has acquired Communispace Corporation, the research pioneer of online consumer insight communities for the world's leading brands.
Communispace uses innovative market research practices and proprietary social media tools to build and manage vibrant online communities that marketers use to test ideas, generate feedback and gain insights into consumer attitudes and outlook. Founded in 1999, the rapidly growing company has created and managed more than 400 customer communities for over 100 blue-chip clients who are experiencing the benefits of having a constant connection with consumers.
Diversified Agency Services (DAS), a division of Omnicom Group Inc. (NYSE:OMC - News), announced today that it has acquired Communispace Corporation, the research pioneer of online consumer insight communities for the world's leading brands.
Communispace uses innovative market research practices and proprietary social media tools to build and manage vibrant online communities that marketers use to test ideas, generate feedback and gain insights into consumer attitudes and outlook. Founded in 1999, the rapidly growing company has created and managed more than 400 customer communities for over 100 blue-chip clients who are experiencing the benefits of having a constant connection with consumers.
Omnicom Group's Diversified Agency Services Acquires The Modellers, Marketing Research and Advanced Analytics Firm
Omnicom Group's (NYSE:OMC - News) Diversified Agency Services (DAS) has acquired The Modellers, a marketing research company with a reputation for helping companies make difficult choices with confidence through the expert application of predictive modeling and advanced analytics. The Modellers will continue to service clients from its Salt Lake City headquarters.
The Modellers, LLC (www.themodellers.com) are specialists in applying advanced analytics to provide decision-making intelligence and answers to clients' most important marketing and communications questions. They have particular expertise in product development, line optimization, pricing, segmentation, message testing and brand strategy. The company's academic heritage and ongoing involvement of its academic advisory board ensure that The Modellers' techniques and approaches reflect the latest advances in marketing science. Their proprietary simulators — known as Interactive Decision Tools (IDT™) — unlock the power of their analytic models, allowing clients to easily explore a variety of "what-if" scenarios to identify which product configurations and marketing actions will maximize revenue and market share. Clients have included Pfizer, Hilton, Philips, FedEx, Warner, LG, AT&T, Gatorade, Subway, Virgin, VISA, Nordstrom, Pixar, P&G, GM, Adobe, eBay, Boeing, Canon and GE.
http://finance.yahoo.com/news/Omnicom-Groups-Diversified-prnews-1166265306.html?x=0&.v=1
The Modellers, LLC (www.themodellers.com) are specialists in applying advanced analytics to provide decision-making intelligence and answers to clients' most important marketing and communications questions. They have particular expertise in product development, line optimization, pricing, segmentation, message testing and brand strategy. The company's academic heritage and ongoing involvement of its academic advisory board ensure that The Modellers' techniques and approaches reflect the latest advances in marketing science. Their proprietary simulators — known as Interactive Decision Tools (IDT™) — unlock the power of their analytic models, allowing clients to easily explore a variety of "what-if" scenarios to identify which product configurations and marketing actions will maximize revenue and market share. Clients have included Pfizer, Hilton, Philips, FedEx, Warner, LG, AT&T, Gatorade, Subway, Virgin, VISA, Nordstrom, Pixar, P&G, GM, Adobe, eBay, Boeing, Canon and GE.
http://finance.yahoo.com/news/Omnicom-Groups-Diversified-prnews-1166265306.html?x=0&.v=1
Peppercom buys H2O Associates
http://www.btobonline.com/article/20110202/AGENCIES03/110209995/peppercorm-buys-h2o-associates#seenit
Peppercom, a strategic communications firm, announced the acquisition of H2O Associates, an interactive and creative services agency. Both agencies are based in New York. Under the acquisition, H2O will become part of Peppercom and will expand the agency's interactive services. Jason Dodd, founder and president of H2O, has been named creative director at Peppercom and will serve on the agency's management team. Financial terms were undisclosed.
Peppercom, a strategic communications firm, announced the acquisition of H2O Associates, an interactive and creative services agency. Both agencies are based in New York. Under the acquisition, H2O will become part of Peppercom and will expand the agency's interactive services. Jason Dodd, founder and president of H2O, has been named creative director at Peppercom and will serve on the agency's management team. Financial terms were undisclosed.
MDC Partners acquires Anomaly
http://www.strategyonline.ca/articles/news/20110209/anomaly.html
Anomaly opened its doors back in 2004 and now, with offices in New York City and London, boasts a blue-chip client roster that includes the likes of Sony, P&G, Pepsi, Motorola and Nike's Converse.
Anomaly opened its doors back in 2004 and now, with offices in New York City and London, boasts a blue-chip client roster that includes the likes of Sony, P&G, Pepsi, Motorola and Nike's Converse.
Olson Acquires MyThum, Its First Buy Outside of U.S.
Continuing its string of acquisitions, Minneapolis-based Olson has bought MyThum, a Toronto-based mobile-marketing agency. It marks Olson's first footprint outside the U.S. and its third acquisition since June. With the addition of MyThum, now called Olson Mobile, the agency has a combined estimated 2010 revenue of $71 million and counts about 400 people in its employ with offices also in Chicago, Los Angeles, Milwaukee, New York and San Francisco. Mobile will be an estimated 10%-15% of the agency's overall revenue. MyThum cofounder Michael Carter will serve as the mobile unit's new president in the Toronto office.
http://adage.com/agencynews/article?article_id=148709
http://adage.com/agencynews/article?article_id=148709
Forrester: 2011 Agency Predictions
http://blogs.forrester.com/sean_corcoran/11-01-24-2011_agency_predictions
Agencies continue to hire and develop talent outside of their heritage
Media planning and buying agencies begin to broaden their horizons
Agencies mature with social media
Mobile (along with tablets) becomes the next big land grab
A whole new crop of specialists appear . . . again.
Everyone continues to (pretty much) fail at analytics
Technology innovation becomes the new creative
Agencies continue to hire and develop talent outside of their heritage
Media planning and buying agencies begin to broaden their horizons
Agencies mature with social media
Mobile (along with tablets) becomes the next big land grab
A whole new crop of specialists appear . . . again.
Everyone continues to (pretty much) fail at analytics
Technology innovation becomes the new creative
Tuesday, February 1, 2011
Dentsu Acquires Digital Indie Firstborn
http://adage.com/agencynews/article?article_id=148588
Dentsu West, the U.S. arm of the Japanese holding company giant, has acquired 65-person indie digital shop Firstborn.
The New York-based digital agency is the latest in Dentsu's buying spree under Tim Andree, CEO of Dentsu West. Terms of the Firstborn deal, which has been in the works since last summer, were not disclosed. Firstborn will maintain its name and clients, and says its trio of senior leaders, CEO Michael Ferdman, President Dan LaCivita and Chief Creative JoonYong Park, will all stay onboard at the shop.
Firstborn's revenue was an estimated $12 million to $13 million in 2010, up more than 30% from 2009, the year it was named to Ad Age's A-List. It counts PepsiCo's Sobe, Wrigley and Aflac as clients.
One major point of difference is that, where most agencies use the influx of cash to set up new offices around the globe, Firstborn isn't looking to expand beyond its single, New York office. Mr. Ferdman is insistent on keeping all staffers within the same office in the hopes of keeping the agency's culture intact.
However, the acquisition could potentially raise conflicts with Firstborn's existing agency clients -- 25% of revenue comes from production work for other agencies. For example, the agency has a long-standing relationship with WPP's Team Detroit for car websites and customization tools. Another consideration will be the fact Firstborn counts PepsiCo a client, while 360i works with Coca-Cola, but Mr. Andree there will be sufficient firewalls put in place to safeguard those relationships.
Dentsu West, the U.S. arm of the Japanese holding company giant, has acquired 65-person indie digital shop Firstborn.
The New York-based digital agency is the latest in Dentsu's buying spree under Tim Andree, CEO of Dentsu West. Terms of the Firstborn deal, which has been in the works since last summer, were not disclosed. Firstborn will maintain its name and clients, and says its trio of senior leaders, CEO Michael Ferdman, President Dan LaCivita and Chief Creative JoonYong Park, will all stay onboard at the shop.
Firstborn's revenue was an estimated $12 million to $13 million in 2010, up more than 30% from 2009, the year it was named to Ad Age's A-List. It counts PepsiCo's Sobe, Wrigley and Aflac as clients.
One major point of difference is that, where most agencies use the influx of cash to set up new offices around the globe, Firstborn isn't looking to expand beyond its single, New York office. Mr. Ferdman is insistent on keeping all staffers within the same office in the hopes of keeping the agency's culture intact.
However, the acquisition could potentially raise conflicts with Firstborn's existing agency clients -- 25% of revenue comes from production work for other agencies. For example, the agency has a long-standing relationship with WPP's Team Detroit for car websites and customization tools. Another consideration will be the fact Firstborn counts PepsiCo a client, while 360i works with Coca-Cola, but Mr. Andree there will be sufficient firewalls put in place to safeguard those relationships.
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