Independent Ad Firms A Disappearing Breed

from the and-then-there-were-two dept

The ranks of the large independent online advertising firm continues to thin. After Google’s purchase of DoubleClick and Yahoo’s purchase of Right Media, it was speculated that Microsoft would make a bid for 24/7 Media. Today, 24/7 Media announced that it had sold itself, but, alas, it was not to Microsoft. Instead it went to advertising firm WPP Group for $649 million net of cash acquired. That pretty much leaves Aquantive and ValueClick as the remaining two firms in this category. It’s not clear if Microsoft still wants to do a deal, but it will be interesting to see whether other old-line advertising firms feel the need to copy WPP, the way Yahoo felt the need to respond to Google. If so, it could push deal valuations even higher as the buyer pool expands while the number of targets diminishes.

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Comments on “Independent Ad Firms A Disappearing Breed”

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Ajax 4Hire (profile) says:

Microsoft has no choice but to buy

some form of Online advertiser (pbbbt, had to clean my tongue after saying that).

Microsoft knows that the age of software and selling Office/Windows has peaked. The new age is internet/network/online flash/Web2.0/Java/script based operations.

I agree that today we all still use PCs with local software running, but even now the scales are tipping to a more distributed operation model. The PC now serves as a conduit to the network not vice-versa.

Microsoft will try to LIVEn up MSN/Office/Outlook and get everyone to drink the .NET kool-aid. But Microsoft is working from a position of dominance, they are too successful to hear the voices of the masses.

Google is a classic example. If Google ‘FORCED’ people to use their site like Microsoft forces their preferences, then Google would not have survived. Google grew and thrived because it continued to adjust and hone their service to give people what they wanted.

Microsoft still decides what you want.
Microsoft is too big to hear the needs of the masses, too big to turn the ship so that it can become an information provider over the internet.

The age of the software and isolated PC is over.

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