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« Is There a Market for Dynamic Ad Placements in Downloadable Media? | Main | HP Goes Online to Promote Print »
August 28, 2007
Engauge Digital Agency Roll-up Seems a Tad Late
The New York Times has the story of 82-year-old marketing legend Stan Rapp's project to build a digital marketing agency powerhouse through a series of small acquisitions in conjunction with private equity firm Halyard Capital. The first two agencies joining Halyard's roster are Direct Impact in Austin and Ten United in Columbus, Ohio. The combined firm will be called Engauge, a vaguely surgical looking word that's spelled that way to evoke accountability.
The decision to court data-driven marketing businesses is compelling, but it's a little late to embark on an aggressive rollup of independent digital ad firms. Many of the best agencies have already been bought, and the valuations for those that remain are sky high.
Posted by Zachary Rodgers at August 28, 2007 11:27 AM
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I don't think it's fair to say there are singular 'best' agencies for the whole spectrum of digital media.
I found a good guide for finding / hiring (possibly buying) digital media agencies.
http://www.demonzmedia.com/DemonzBlog/?p=11
Main points -
A) No one agency is 100% good at everything
B) A digital media campaign doesn't have to exclusively cover the web
C) A good agency doesn't have to be good at something to understand it, and can therefore be useful in building the component they are good at and hiring a company that are good at the other aspects of the campaign
D) Therefore a good agency is good at what they do, but is also experienced enough to know that other companies are better at their 'niche' and that the best results can come from collaboration.
If Stan Rapp understands which companies will work well together as well as which firms make up the majority of the client base, then it's not necessarily true that it's a waste of time. In fact the big players in the digital field including Microsoft, Google, Yahoo (and so forth) are constantly trying to invest in smaller companies and even attempt hostile takeovers of each other!
There is no limit to what could happen in the digital media field as long as there's money to be had.
qua June 18, 2008 4:30 AM