May 17th, 2007

WPP Acquires 24/7 Real Media To Compete With Google And Yahoo

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I saw one of Google’s “agency relationship managers” give a pitch to a top agency, where she gave the standard line that Google doesn’t want to be an ad agency. I didn’t believe it for a second. And neither does WPP, one of the top agency holding companies, which just announced the acquisition of 24/7 Real Media.

Why did WPP buy 24/7? To compete with Google and Yahoo.

Google AdSense is the largest ad network in the world, and Google recently acquired DoubleClick, which owns the #1 display ad serving solution (24/7 Real Media has the #2). Google offers free search marketing services to its largest AdWords advertisers. DoubleClick’s Motif product offers free creative services to publishers who want to create custom online rich media ads for advertisers. Yahoo recently acquired Right Media, a successful dynamic marketplace for unsold ad inventory. Yahoo has one of the largest sales channels for online display advertising.

Do you see the disruption of the ad agency business going on here?

24/7 Real Media has an ad serving business, a search marketing business, and an ad network business:

Its business spans three key sectors in the rapidly-changing digital media industry – media, search and technology:

its media business is one of the largest CPM-based media networks with more than 950 participating sites and 115 million monthly unique users worldwide.

its search business provides clients with strategic advice and consulting on search engine optimisation (SEO) and search engine management (SEM) for Google, Yahoo! and MSN as well as other search engines and shopping comparison services.

its technology business offers the number 2 publisher-side advertising management platform to more than 400 clients.

It used to be there were media companies and ad agencies. Media companies created the ad inventory. Ad agencies created the ads and bought the inventory. Online, there are ad dollars and — dare I say it — vertically integrated media and advertising companies trying to grab as many of those ad dollars as possible.

Comments (18 Responses so far)

  1. WPP Acquires 24/7 Real Media To Compete With Google And Yahoo

  2. estimates of the value than the reported Microsoft figure. Whatever Redmond’s interest might have been (and it must not have been too deep, considering its ability to outbid just about anyone), it only served to further motivate WPP, which was suddenly looking at tech companies trying to cut ad agencies out of their middleman role online, where the ultimate revenue potential is huge. “Online advertising will exceed $33 billion in 2007 or more than 8 percent of global advertising spend, based on GroupM estimates,” a WPP news release says.

  3. estimates of the value than the reported Microsoft figure. Whatever Redmond’s interest might have been (and it must not have been too deep, considering its ability to outbid just about anyone), it only served to further motivate WPP, which was suddenly looking at tech companies trying to cut ad agencies out of their middleman role online, where the ultimate revenue potential is huge. “Online advertising will exceed $33 billion in 2007 or more than 8 percent of global advertising spend, based on GroupM estimates,” a WPP news release says.

  4. estimates of the value than the reported Microsoft figure. Whatever Redmond’s interest might have been (and it must not have been too deep, considering its ability to outbid just about anyone), it only served to further motivate WPP, which was suddenly looking at tech companies trying to cut ad agencies out of their middleman role online, where the ultimate revenue potential is huge. “Online advertising will exceed $33 billion in 2007 or more than 8% of global advertising spend, based on GroupM estimates,” said a WPP news release.

  5. post

  6. 1:30 PM [IMG] Scott Karp / Publishing 2.0: WPP Acquires 24/7 Real Media To Compete With Google And Yahoo

  7. [IMG] Scott Karp / Publishing 2.0: WPP Acquires 24/7 Real Media To Compete With Google And Yahoo

  8. WPP Acquires 24/7 Real Media To Compete With Google And Yahoo — I saw one of Google’s “agency relationship managers” give a pitch to a top agency, where she gave the standard line that Google doesn’t want to be an ad agency. I didn’t believe it for a second.

  9. — some of the early reports I saw stressed aQuantive’s ad serving and display ad sales assets, but one of aQuantive’s crown jewels is digital agency Avenue A/Razorfish. (And of course Google’s recent moves have no doubt spurred these moves, although they claim to have no intention of disintermediating the ad agencies.) Our business has historically been characterized by amiable friction between buyer and seller, and kept honest by impartial third party serving and measurement.

  10. you can serve publishers, the more business you will get. Reflecting the high stakes at play, Microsoft will pay $66.50 per share for aQuantive, an 85 whopping percent premium to aQuantive’s Thursday price of $35.87. It comes after advertising giant WPP moved yesterday to buy 24/7 Real Media, and Google’s recent purchase of online advertising company DoubleClick, and Yahoo’s announced acquisition of Right Media Inc. for $680 million.

  11. you can serve publishers, the more business you will get. Reflecting the high stakes at play, Microsoft will pay $66.50 per share for aQuantive, an 85 whopping percent premium to aQuantive’s Thursday price of $35.87. It comes after advertising giant WPP moved yesterday to buy 24/7 Real Media, and Google’s recent purchase of online advertising company DoubleClick, and Yahoo’s announced acquisition of Right Media Inc. for $680 million.

  12. ad agency), but Microsoft is embracing the transformation of software into media and the overall convergence of media and technology. Yusuf Mehdi, Microsoft’s senior vice president and chief advertising strategist, said in reference to denying rumors of a

  13. If the future of advertising is online, many companies, including Google, Yahoo, Microsoft, and WPP, are betting that the future of online advertising is in ad networks, i.e. centralized platforms for the buying and selling ads, where the company that controls the network controls the sale and the flow of revenue to the publisher. This is entirely

  14. [...] 2.0 blogger Scott Karp said WPP made the 24/7 deal to compete with Google and Yahoo. Their acquisitions of DoubleClick and [...]

  15. [...] Scott Karp at Publishing 2.0 views the deal as a clear step from WPP to compete with both Yahoo and Google. And the Alarmclock-blogger figures that – as an analyst put it earlier – “24/7’s poor quarterly performance might have spoiled their chances with Redmond” adding that it is more likely that Microsoft will develop its own business or partner with Yahoo. [...]

  16. [...] may be forever denying that it is a media company (and an ad agency), but Microsoft is embracing the transformation of software into media and the overall convergence [...]

  17. [...] heals of Google’s acquisition of DoubleClick, Yahoo’s acquisition of Right Media, and WPP’s acquisition of 24/7 Real Media (which includes a content network), the trend is clear. These vertically integrated media and [...]

  18. [...] partner.  Media companies provide agency-like services, and agencies have become distributors (see WPP).  “Tech” companies provide campaign-management advice (Microsoft owns Agency [...]

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