The research analyzes 350 merger and acquisition deals
from the world’s largest media holding companies between 2007 and 2011.
/EINPresswire.com/A new research report published by the New York-based firm, Global Advertising Strategies, and Russia’s RosBusinesConsulting (RBC), examines global marketing industry trends through merger and acquisition activity over the last five years. The report looks at M&A deals among the five leading holding companies, including WPP, IPG, Omnicom, Publicis, and Aegis, and zeroes in on the geographic location of the activity and the type of the agency acquired.
Out of the 350 deals analyzed, 50% took place in the mature markets, such as the U.S. and Western Europe. The remaining half was dedicated to the emerging economies, including Russia. Russia’s marketing industry continues to attract solid investor interest in the post-crisis economic environment, recovering from the financial woes of 2008-2009. According to the industry insiders that participated in the research, Russia’s leading independent agencies are anxious to enter the global adland, and ready to compete for and work on global accounts and brands. For most of them, this means partnering with an established international agency network.
The report reflected several M&A trends specific to the emerging markets and the mature markets alike. As anticipated, agencies with digital focus accounted for 20% of all M&A activity in 2011 alone. PR and Strategic Communications agencies came in at 16% in 2011, and Marketing Intelligence (Research & Data Management) companies were at 13% in 2011. Although digital shops continued to attract the lion’s share of investor interest and dollars worldwide, the research demonstrated a slight decline in that activity overall, indicating that key acquisitions have already been established within the sector.
The two new favorites, PR / Strategic Communications and Marketing Intelligence firms, have demonstrated solid growth, nearly doubling its M&A action compared to the previous five years. Specific to the Russian market, PR and Strategic Communications firms, still a relative novelty, are gaining more popularity with advertisers as the new Russian consumer becomes more knowledgeable and sophisticated. The largest PR sector deal to-date was announced earlier this year between Russia’s PBN and WPP’s Hill+Knowlton.
Marketing Intelligence (Research and Data Management) sector also showed significant growth in interest from the investors, boosting its M&A activity by 44% worldwide. The trend, spearheaded by the explosion of consumer data from social media platforms, years of online registrations, and loyalty programs, positions data mining at the forefront of the industry’s future worldwide, Russia included.
For more information on the report, please contact Alex Moncion at 212.964.0030 or [email protected]