Interactive and marketing services deals dominate M&A activity

Share this content:

Mergers and acquisitions in the interactive and marketing services sector totaled $5.74 billion in the first six months of 2011, an 81% increase compared with the same period in 2010, according to a report from investment bank Jordan, Edmiston Group, Inc. (JEGI).

One hundred and twenty nine interactive and marketing services transactions were announced during the period, and market research and consulting transactions led the way in deal value at $1.45 billion.

“Because of the Internet and social monitoring, there's a lot of activity and a lot of interesting companies in the consulting and research space,” said JEGI co-president Scott Peters. “It will continue to be active into the next quarter.” 

Digital agency transactions led in volume, with 22 deals occurring during the six-month period. Publicis Groupe's acquisition of Rosetta, a global interactive marketing services firm, for $575 million was the largest-value transaction in the space. 

During the six-month period, $806 million was spent on digital agencies.

“We believe investment in marketing and interactive services will accelerate over the course of the next year,” said Peters. “The old adage is ‘follow the growth.'”

Peters said he's witnessed an increase in investors investing in debt, which should continue to accelerate transactions. “Lenders are getting more comfortable with these business models, and investments in debt are occurring.”

Other marketing and interactive services sector transactions included ad agencies (valued at $827 million total), marketing technology companies ($669 million), ad networks ($644 million), data and analytics ($473 million), measuring and monitoring ($382 million), social media marketing ($250 million), search ($70 million), email ($55 million), and PR ($20 million).

M&A in interactive and marketing services accounted for 27% of all transactions during the period.

The value of all announced transactions in the media, information, marketing services and technology sectors totaled $23 billion during the period, a 15% increase compared with the same period last year.

Loading links....
close

Next Article in Marketing Strategy

Sign up to our newsletters

Company of the Week

We recently were named B2B Magazine's Direct Marketing Agency of the Year, and with good reason: We make real, measureable, positive change happen for our clients. A full-service agency founded in 1974, Bader Rutter expertly helps you get the right message to the right audience at the right time through the right channels. As we engage our clients' audiences along their journey, direct marketing (email, direct mail, phone, SMS) and behavioral marketing (SEM, retargeting, contextual) channels deliver information relevant to the needs of each stage. We are experts at implementing and leveraging marketing technologies such as CRM and marketing automation in order to synchronize sales and marketing communications. Our team of architects and activators plan, execute, measure and adjust in real time to ensure the strategy is working as needed and change things if it's not.

Find out more here »

DMN's Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here