Study: WPP And Dentsu Top List Of Agencies To Acquire New Businesses In 2016

Study: WPP And Dentsu Top List Of Agencies To Acquire New Businesses In 2016
SHARE
THIS



A study by global consulting firm R3 has revealed which media agencies have made the most acquisitions in the past 12 months with Dentsu leading the way with 39 and WPP second with 36.

R3 tracked 398 transactions around the world, covering $US14 billion in estimated deal value, a 150 per cent increase over 2015.

“This increase was driven by more buyers seeking out the best digital and analytic talent from around the world” said Greg Paull, principal and co-founder of R3. “The only thing that’s clear is that CMOs have never had a less clear choice in seeking out partners in this space.”

Holding groups represent only 22 per cent of acquisitions

The traditional buyers in this space, the six global holding groups, represented just 22 per cent of all transactions, with Japan’s Dentsu leading the way. Dentsu bought one of the largest independent agencies in the US (Merkle), bringing in significant data and analytics talent.

Dentsu also invested in gyro, a global B2B agency. WPP (36 transactions, down from 45 in 205) was also active this year, investing in Triad Retail Group in the US – with over 80 per cent of their investments in digital agencies and technology. The other four holding groups made just 19 deals between them and represented just 3 per cent of total merger and acquisitions for the year.Screen Shot 2017-01-19 at 9.41.08 am

The rise of the consultants

Last year was the year that the consulting firms got serious about expanding into marketing communications. IBM invested more than $US240 million into Resource Ammirati, Aperto and ecx.io. Accenture spent $US 175 million acquiring Karmarama in the UK and another agency. Deloitte invested into one of the US’s smartest boutique agencies, Heat.

Screen Shot 2017-01-19 at 9.42.51 am

Chinese and Indian buyers on the rise

This year also brought a number of new investors into the marketing services space – from P/E players, to Vice and Snapchat to new investors from India and China. Among the 10 largest deals of 2016 were investments from Salesforce, Telenor, Nielsen, India’s Miteno Group, and China’s Nantong Metals and Keda. “There’s a number of asynchronous buyers out there, many looking to make a major statement, to impact their business and share growth,” added Paull.

Screen Shot 2017-01-19 at 9.44.34 am

Private equity firms continue to invest

This year also saw a number of major deals by private equity firms in the sector, looking to build assets for future returns and sales. “With the growth of programmatic, analytics and mobile, the space has become a more dynamic sector for investors,” said Paull.

Screen Shot 2017-01-19 at 9.47.42 am

US leads the way from Asia

Despite extensive past activity in developing markets, 2016 saw the US market lead 50 per cent of value as well as 41 per cent of all deals. Asia Pacific ($US3.6 billion in deal value) was the second ranked region, ahead of Europe and Latin America. “More buyers are trying to build a strong foundation first in the world’s largest marketing base,” said Paull. “We expect more growth from Asia Pacific next year in terms of number of deals, but transaction size will be smaller than in the US.”

Trends for 2017

The coming year, with new governments in the US and other markets, promises to be a volatile one for investors. R3 is predicting a new group of players will emerge through this year. “We expect companies such as Facebook, Google, Amazon and Salesforce to be more active investors in the sector this year,” added Paull.  “They have the cash, and they are continuing to take leadership roles on content creation – so the need for talent will only increase,” he added.

Latest News

Women In Media Profile: Zeina Khodr
  • Media

Women In Media Profile: Zeina Khodr

When B&T was offered to interview a lady named “Zeina”, we initially thought it was the warrior princess herself.

by B&T Magazine

B&T Magazine
Q&A With Cannes Chairman Terry Savage
  • Advertising
  • Media

Q&A With Cannes Chairman Terry Savage

If you mistakenly thought this was an interview with Kojak's Telly Savalas, as it turns out, it's even better than that.

Optus To Phase Out Virgin Mobile Brand
  • Marketing

Optus To Phase Out Virgin Mobile Brand

Didn't much fancy that Telstra story above? Well, perhaps B&T could tempt you with this tasty Optus tickler instead.

by B&T Magazine

B&T Magazine
AKQA R&D Teams Up With Google For Semi Permanent 2018
  • Media

AKQA R&D Teams Up With Google For Semi Permanent 2018

AKQA R&D in collaboration with Google has developed a process called Somesthetic Transfer. It uses machine learning to take both the style and texture of an artwork and apply it to another image to be 3D printed with a UV printer. The works will be displayed at Semi Permanent 2018 in Sydney from Thursday 24 […]

WPP’s Health & Wellness To Unveil ‘How Design Can Save A Life” For Vivid
  • Marketing
  • Media

WPP’s Health & Wellness To Unveil ‘How Design Can Save A Life” For Vivid

Design students from Torrens University’s Billy Blue College of Design have partnered with WPP AUNZ’s Health & Wellness division to decode clinical data on ‘Medicinal Marijuana in the Treatment of Epilepsy’. Their creative solutions will be presented at a Vivid Ideas Exchange titled ‘Design can save your life: how can creativity improve comprehension of health data?’ […]

Diversity Case Study Series: The Royals
  • Advertising
  • Marketing
  • Media

Diversity Case Study Series: The Royals

If you read one diversity case study on B&T today, make it this one. Not that there's any others to choose from, really.

by B&T Magazine

B&T Magazine
Cricket Australia Finds New Major Sponsor
  • Marketing

Cricket Australia Finds New Major Sponsor

B&T was going to insert a homage to Sherbert's classic "Howzat" here before realising it was naff and showed our age.

by B&T Magazine

B&T Magazine
PHD Wins HSBC Global Media Account
  • Media

PHD Wins HSBC Global Media Account

ICYMI, PHD has FTW the HSBC business IRL. It's not so much a LOL or NSFW, but a TL;DR. Ahh, forget the whole thing.

InMoment Accelerates APAC Expansion With Key Acquisition
  • Media

InMoment Accelerates APAC Expansion With Key Acquisition

Customer experience (CX) intelligence platform, InMoment, has expanded into Australia and New Zealand with the acquisition of customer experience agency, brandXP and appointment of Claire Fastier as its APAC business head.

Marketers Need To Focus On Voice Search Right Now
  • Opinion

Marketers Need To Focus On Voice Search Right Now

In this opinion piece, Performics Australia performance content account director Steve Robinson (pictured below) dives into the hazy relationship between marketers and voice-activated technology. From settling family disputes, (“Hey Google, are fossil fuels really made from dinosaur bones?”) to running a household, (“OK Google, add toothpaste to my shopping list”), voice-activated systems are becoming more […]

Opinion

by B&T Magazine

B&T Magazine
SpotX Launches Online Resource Library For Publishers Seeking GDPR Guidance
  • Advertising
  • Media

SpotX Launches Online Resource Library For Publishers Seeking GDPR Guidance

Video advertising and monetisation platform SpotX has announced the launch of an online resource library for the European Union’s General Data Protection Regulation (GDPR). The library can be found on the company’s website and is part of a wider educational initiative by SpotX – which is headquartered in the US and has an office in […]

Daylight Agency Opens Government Division, Hires Legal & Political Expert
  • Marketing

Daylight Agency Opens Government Division, Hires Legal & Political Expert

Integrated communications firm Daylight Agency has cemented its presence in the government and political arena with the appointment of industry veteran David Begg. A practising solicitor for over 28 years, Begg (pictured above) will head up the agency’s new government division. He has extensive experience working with large commercial clients on high-profile regulatory and legal […]

Frost Design Unveils New Look For John Holland
  • Marketing

Frost Design Unveils New Look For John Holland

Frost Design has shown off its comprehensive rebrand of iconic Australian infrastructure and property business John Holland, based around the brand idea of ‘Transforming Lives’. John Holland CEO Joe Barr said Frost was the only branding business who understood that the impact of the rebrand was just as important internally as it would be externally, […]

Women In Media Profile: Jill Johnston
  • Media

Women In Media Profile: Jill Johnston

We've got an absolute cracking Women in Media profile today. Not to say it's approved by the Chiropractors' Association.

by B&T Magazine

B&T Magazine
First Lady Michelle Obama and President Barack Obama Dance Together at the Presidents Ball
  • Media

Netflix Secures Producer Deal With The Obamas

It seems former US president Barack Obama and former First Lady Michelle Obama aren’t quite done with the international spotlight just yet. The Obamas have officially signed a multiyear deal with Netflix, which will see the power couple producing films and series with the streaming giant. According to Netflix, “The Obamas will produce a diverse […]

How To Spot A Trend Versus A Fad
  • Opinion

How To Spot A Trend Versus A Fad

One need only view our editor's hot pink leg warmers today to realise he's neither fad nor trend.

Opinion

by B&T Magazine

B&T Magazine
Why Engagement Is The New Rule Of Content
  • Opinion

Why Engagement Is The New Rule Of Content

And why is B&T running a photo of an engaged couple for this content engagement article? It was either that or a carrot.

Opinion

by B&T Magazine

B&T Magazine
Fairfax Media Recruits 20 Trainee Journalists Across All Its Titles
  • Media

Fairfax Media Recruits 20 Trainee Journalists Across All Its Titles

Fairfax Media has today announced the recruitment of 20 trainee journalists to join the newsrooms of The Sydney Morning Herald, The Age, The Canberra Times, The Australian Financial Review, Brisbane Times and WAtoday. This represents one of Metro’s largest trainee intakes in years and underlines the commitment of the mastheads to fostering a new generation […]

Sydney Australia - November 7, 2011. An extreme close up of an American express card issued by the Australian bank Westpac.
  • Media

AMEX Launches Global Media Review

Are there not enough hours in the day? Are you cheek-by-jowl with your co-workers? Well, hopefully you won't win this.

Sydney Water & Republic of Everyone Create Vinyl Records Made Of Recycled Marine Plastic
  • Campaigns
  • Marketing

Sydney Water & Republic of Everyone Create Vinyl Records Made Of Recycled Marine Plastic

Sydney Water has pioneered a way to create records from marine plastics and, in doing so, encourage more people to join the movement of local clean-up groups rolling up their sleeves every weekend to clean plastics, litter and other pollutants from the city’s beaches and waterways. Plastics are collected by volunteers, then cut in pieces […]

Credit Card Compare Names Its First Head Of Marketing
  • Marketing

Credit Card Compare Names Its First Head Of Marketing

Aussie credit card comparison site Credit Card Compare has announced the appointment of Caroline Raffan as its inaugural head of marketing. Raffan (pictured above) has over 10 years’ experience in brand strategy, campaign development, digital marketing, events, public relations, content creation, market research, advertising, stakeholder management, social media marketing, and project management. She joins Credit […]

Why Programmatic Needs To Become A Branding Machine
  • Advertising
  • Marketing
  • Opinion
  • Technology

Why Programmatic Needs To Become A Branding Machine

In this opinion piece, Phil Murrell (pictured below), country manager for Australia and New Zealand at Sizmek, argues that programmatic ad spend needs to move up the branding funnel. When I started in digital advertising way back in 2004, we got our media insertion orders via the fax machine. We relied on that machine to […]

Opinion

by B&T Magazine

B&T Magazine