AdTech, the Frankfurt-based European subsidiary of Adforce, opened an office in Madrid last month and plans to start operations in Milan “in short order” to be followed later this year with France and possibly Scandinavia. The company also has an office in London.
Spokesman Dirk Freytag said company strategy called for studying markets and picking up clients in them before putting people there and investing in bricks and mortar.
Spain is chosen by many foreign investors who want to open branches due to its large market and good business conditions.
AdTech had seven clients on board before launching in Spain. They include Tiscali, a rapidly growing Italian Internet company with offices in six European countries; I-networks; BPE; and Dinamic Multimedia.
CMGI bought the company, a German start-up founded in January 1998, just a year ago and placed its shares with Adforce. AdTech is a service provider for online marketers with technology that enables delivery of Web advertising.
The parent companies’ problems in the United States have not hit the German subsidiary yet, Freytag said.
“We’re still in the red, but we’re ahead of our business plan and should reach breakeven this year,” he said.
“The dying dot-coms have not affected our business. We continue to grow and are closer to profitability every day. Our clients are networks like ad pepper, online agencies and large sites that market themselves.”
It has 140 clients so far, including The Wall Street Journal Online; Rivals, a sports Web site; and Hmscarat and Framfab, two large Pan-European agencies. AdTech continues to operate independently from U.S. control, “and so long as the numbers are OK, we expect to continue doing so,” Freytag said.
Most of its competitors in Europe are American companies — 24/7 Media, DoubleClick, Real Media’s Adstream and even Engage, another CMGI company.
FAQ
1. Why did AdTech open an office in Madrid, and what are its future plans?
AdTech, the European subsidiary of Adforce based in Frankfurt, recently opened an office in Madrid and plans to commence operations in Milan soon. The company’s strategy involves studying markets, acquiring clients, and then expanding its physical presence. Future expansions are also planned for France and possibly Scandinavia later this year.
2. What factors influenced AdTech’s decision to choose Spain for expansion?
Spain attracts many foreign investors due to its sizable market and favorable business conditions, making it an appealing choice for opening branches and expanding operations.
3. How many clients did AdTech have before launching in Spain, and who are some of its notable clients?
Before launching in Spain, AdTech already had seven clients onboard, including companies like Tiscali, I-networks, BPE, and Dinamic Multimedia. Tiscali, in particular, is a rapidly growing Italian Internet company with a presence in six European countries.
4. Who owns AdTech, and what services does it provide?
AdTech was acquired by CMGI, a German start-up founded in January 1998, just a year ago. It operates as a service provider for online marketers, offering technology that facilitates the delivery of web advertising.
5. How has AdTech’s performance been amid challenges faced by its parent companies in the United States?
Despite challenges faced by its parent companies in the U.S., AdTech’s German subsidiary has remained resilient. While still operating at a loss, it has exceeded its business plan expectations and aims to break even this year. The company’s growth has been largely unaffected by the dot-com downturn, with a growing client base that includes reputable names like The Wall Street Journal Online and Rivals, among others.
6. Who are AdTech’s main competitors in Europe?
AdTech faces competition primarily from American companies in Europe, including 24/7 Media, DoubleClick, Real Media’s Adstream, and Engage, another CMGI company. Despite this competition, AdTech remains independent from U.S. control and anticipates continued growth and profitability.
Featured image provided by Aleksandar Pasaric; Pexels; Thanks!
