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As
online advertising grows, it is natural that offline ad agency networks
get more worried - after all, they will be witness to ad dollars
migrating to technology companies! So, it is not surprising that
ad giant Publicis Groupe recently acquired leading online agency
Digitas for $1.3 billion.
And now, with advertising giant WPP just announcing its acquisition
of online advertising network & technology firm 24/7 Real Media
for $ 649 million, the trend is confirmed.
Shifting Focus
For
the past couple of years, large marketers have been constantly shifting
their ad budgets to online advertising. So, this change in focus
for ad agencies was bound to happen sooner or later.
Of
course, by announcing its intention to acquire DoubleClick,
the world's largest online ad serving co.,
online
behemoth Google in
a way,
accelerated matters.
To date, Google's advertising model targets "the long tail"
for its advertising revenues. The clientele (mostly small businesses
& online publishers) is quite, quite different from the multi-national
marketing cos. who are the targets of large advertising networks.
Perhaps that's why WPP (who has earlier acquired digital outfits
like VideoEgg, Wild Tangent, Spot Runner, as also interactive agencies
like Bridge Worldwide, Zaaz) had never invested in any online ad
serving business so far.
Take
A Position!
But with DoubleClick entering the Google fold, the equation will
change. And drastically at that. The Google group's dominance is
very likely to cast its shadow on online display ads. Because Google-DoubleClick's
ad clients will include marketing Proctor & Gamble, Johnson & Johnson,
Unilever et al. (Incientally, most of these are existing DoubleClick
clients !)
Google's takeover bid for DoubleClick can probably be considered
as the tipping point - inciting a change of state from "wait & watch"
to "take a position" !
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