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Internet Marketing M&A Staying Strong in ‘06

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January 30th 2006
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In its 12th annual “Merger and Acquisition Prospects for Marketing Services and Internet Marketing Firms”, investment bank AdMedia Partners found that mergers & acquisitions for experiential marketing companies — guerilla, buzz, CRM and viral among others — will remain strong. In fact, for the first time in five years, a majority (52%) now believes that M&As are now favorable to both sellers and buyers.

More than 90% of respondents expect to enter or expand in at least one sector in 2006. Internet marketing, marketing/strategic consulting and experiential marketing are among the most popular areas for expansion.

Specifically, of those who identify themselves as prospective buyers, 54% expect to complete an acquisition during 2006, up slightly from 51% in 2005. More dramatically, however, 42% of those who identify as prospective sellers expect to sell all or part of their businesses in 2006, compared with merely 25% last year.

Respondents to the AdMedia Partners survey were comprised of both advertising and marketing services: 52% are marketing services firms, 30% Internet marketing firms, 26 percent ad agencies and 9 percent holding companies; 89 percent are private companies, and 11 percent are public companies

A majority of these respondents also foresee moderate to strong M&A activity in database marketing and CRM, marketing and strategic consulting, specialist advertising, direct marketing, media buying services, corporate identity, design, sales promotion and public relations. On the other hand, a strong majority (55%) see weakness in general advertising M&A.



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