The Guardian
trending topics
Close Box

Register now

Our next conference: paidContent 2012, March 1 in NYC.


Interview: David Moore, CEO, 24/7 Real Media: Buying Innovation Is A Must; ‘Technology Judo’

  • Comments Comments (View)
  • Text Size: A A

Standing at his company’s exhibition booth at the recent Ad:Tech conference in New York, 24/7 Real Media chairman and CEO David Moore recalled another industry event three years ago, where he and Sir Martin Sorrell discussed the need for traditional agencies to quickly ramp up their technology offerings. Fast forward to WPP’s acquisition of 24/7 last May for $649 million – surprising many industry observers who expected Microsoft’s (NSDQ: MSFT) bid for the Seattle interactive ad shop to win out – the start of the mega-agency’s digital ad agency buying binge. In the past few months, WPP has added tech marketing firm Refinery, digital creative Schematic and, most recently, online ad agency Blast Radius.

SEE ALSO: 24/7’s Moore Hopes To Manage Potential Conflicts By Balancing Integration And Separation

Moore and I spoke about 24/7’s transition from an independent to holding company subsidiary and the general state of traditional/non-traditional consolidation. You can download or stream the audio here (8.5M, 9 min.) Some excerpts after the jump:

imageChanging landscape: Sharing Sir Martin’s concern about how the possibility of a Google/DoubleClick merger would affect the industry, Moore felt it was time to seek refuge within a larger organization. And he chose to go with WPP because he felt the two businesses were complimentary: “When you look at our business – we sell online advertising, we license an ad serving web analytic technology, and we manage search budgets on behalf of advertisers. Our technology for search is called Decide DNA… combined with WPP’s search business, we now are the largest buyer of search across Yahoo (NSDQ: YHOO), Google and MSN… What’s interesting about Microsoft and Google is that they both own search engine marketing companies. And, if you’re an advertiser, are you going to give your money to Google to spend on Microsoft, or vice versa? And how do you feel – if you’re a company like Yahoo – about all this?”

Implications: “If you look at the other consolidation that is happening in the industry, DoubleClick is going to get bought by Google (NSDQ: GOOG). It’s just a matter of getting through the regulatory environment. I think strategically, it’s a good fit for them, but from a macro perspective, it’s generated a lot of concern in the industry. So you see companies like News Corp (NYSE: NWS). and NBC starting Hulu, which is direct competition with YouTube. And Viacom (NYSE: VIA) is, of course, suing Google over copyright infringement. And those are all DoubleClick customers. It’ll be interesting to see how it all pans out.” 

Transition: “WPP runs all of its companies independently. So it’s not much of a change, other than we weren’t a public company anymore, which frankly, after 10 years, I was happy to move into a larger organization and not have to worry about a quarterly earnings statement day in and day out, although financial performance is very important to WPP. “

Buying innovation: “I think it’s difficult for a traditional advertising organization to create their own technology. So that was the major force behind WPP acquiring us. While we don’t have the resources to compete with Google and Microsoft head-to-head on technology, what we can do is create what I would call is a selective firewall that is placed between Microsoft and Google, and only allows them in under certain terms and conditions. We look at it as ‘technology judo,’ rather than direct competition.”

Nov 14, 2007 12:00 PM ET

Posted In: Advertising, Companies, Google, Microsoft, david moore

(Page 1 of 1)


The Bestsellers

From iTunes and YouTube to Facebook and Kindle, the most popular content on the web, free and paid.

Android Apps (Paid) Android Apps (Paid)
1. Where's My Water?
2. Beautiful Widgets
3. Cut the Rope
4. ROM Manager (Premium)
5. Titanium Backup PRO Key ★ root
See The Other Bestsellers »

Jobs RSS Job Listings

Social Standing

Which media brands are getting a lift from Tweeters and bloggers right now -- and which are getting panned?

"Sentiment" Scores for All the Companies »

Sponsors

Staff