Looking To Acquire An Interactive Shop? Ad Age Has A List
Earlier this year, after the major acquisitions of interactive ad shops Digitas and AKQA, investment bank AdMedia Partners pointed out the strong desire among traditional agencies and PE firms to acquire other digital marketing companies. But then AdMedia wondered if there were enough appropriate targets. But as a special feature in Ad Age shows, if you look hard enough, you might find what you want. The magazine has culled a list of 20 independent digital ad shops it considers hot acquisition prospects.
While some small shops prize the freedom that comes with independence, Michael Seidler, CEO of Madison Alley Ventures, an investment bank focusing on interactive agencies, tells AdAge that as larger agencies absorb more of their peers, indies may find themselves outgunned by similar competitors that have become suddenly imbued with much greater resources.
"…indies may find themselves outgunned by similar competitors that have become suddenly imbued with much greater resources."
That is, unless you've got a unique offering that the big guys can't match, a reputation they could never live up to, and the talent they don't have. There will ALWAYS be someone that is working on doing something better, stronger, faster. And that person/persons will likely be coming from outside the big agency structure. It's what drives us to CONSTANTLY innovate, while most others are busy trying to catch up.
Case in point? Google, the technological darling, acquires companies all the time. Heck, they may even acquire a chunk of Facebook. Why? Because they can't be the best at everything. If they see something or someone out there doing it better, they consider a strategic move to acquire it and make it work for them. But the cycle never ends. There ALWAYS needs to be an acquisition strategy to ensure a leadership postition.
Or how about independent music? Remember the indie music explosion of the early 90s? All those labels were snapped up, and Pearl Jam, Nirvana, and numerous other revolutionaries became part of the label system. Many of these artists have spent the last few years trying to get out of it. Now, you've got artists like Radiohead making a go of it on their own, and LiveNation trying to completely remodel the music business. Independents always have their day. But they may not spend all of their days for eternity as independents.
The point is, innovation and creativity will always be happening. And clients will always look for the ones that are doing it the best, whether within a holding company structure, or without. It ain't just the number of resources and manpower. It's the quality.