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Have Agencies and Media Co’s got it right..?
Digital media revolution is still being led by new breed of companies, there are number of examples where new players like yahoo, Google have successfully created compelling online businesses and created wealth in market that never existing, there is a catch up game being played by pure play IT companies like Microsoft, Apple and media moguls like Rupert Murdoch, Martin Soren to catch up the internet bandwagon, however there is no evidence however that rise of internet or mobile has impacted traditional media channels like TV, Radio or Newspaper, therefore rise of digital media can not be considered as loss of non digital, many traditional media houses have successfully complimented the offline businesses with online. Amount of revenues which TV channels are generating through mobile is outstanding while there are players like BBC, National Geographic, ESPN who have created complimentary channels online.
Since this is still an evolving industry and a lot is yet to happen, no winners or losers can be declared yet, however there is a consensus in industry that a lot of traditional ad agencies and media houses have been late in understanding the relevance of this media and invest. There is a big opportunities in this space and there is no quick money or results a lot will depend how well all of us understand it and apply the media to our clients businesses and create revenue generating assets for ourselves.
Quick snapshots on whatâ€™s going on in this catch up/Acquisition game globally,
- AOL Time Warner acquires Advertising.com for $435M in June 2004 subsequently acquires tacoda and adtech on undisclosed term in mid 2007.
- News Corporation acquires MySpace-parent Intermix for $580M in May 2005
- Google announced their acquisition of DoubleClick… for $3.1 billion
- WPP Group acquires online ad company 24/7 Real Media in a $649 million deal in May 17, 2007
- Microsoft aquires aQuantive for $6 billion in cash, a deal disclosed less than 24 hours after WPP Group’s $649 million acquisition of 24/7 Real Media