Contact

Advertising Agencies Invest over 500M$ in Startups


Integral service around a transaction
BY : Diego GutiérrezMarch Mon, 2014
investmentThe rise of advertising and new technologies is increasing the interest of the public in the investors for this sector. Since 2010, 4 advertising agencies, through their funds, have been involved in 52 investment rounds, totalling $500M.

 

WPP Digital, the main investor:

The main investor in the sector is WPP DigitalWPP's digital investment arm, which has completed 26 deals in the sector since 2010. These include, most notably, the purchase of Blue State Digitaland the investments at Fullscreen , Salesforce Buddy Media Miaozhen Systems.

Blue State digital is a digital agency specialising in advocacy, membership and fundraising campaigns for non-profit organisations, educational and cultural institutions, political campaigns and corporate brands, which in December 2010 was acquired by WWP.

Fullscreen is Youtube's leading global network for creators and brands, which in June 2013 received one round of $30M, in partnership with The Chernin Group, Comcast Ventures and WPP Digital.

Buddy Media is a software that provides tools for large companies to manage their social media pages on Facebook and Twitter and can measure the effectiveness of social media marketing programmes. In November 2010, it received a $5M round from WPP.

"Buddy Media was acquired by Salesforce in 2012 for $689M, with the aim of enhancing its social media marketing offering," says Diego Gutierrez, social media marketing expert. alternative financing of the group Abra Invest.

But WPP's investments are not limited to the US market. In April 2013, WPP invested in Miaozhen Systems, China's leading big data digital advertising measurement company.
"This investment continues WPP's strategy of developing its services in fast-growing and important markets and sectors such as Greater China, one of the fastest growing markets for the company, and WPP's third largest market with sales of €1 billion in 2012, including its associates," said Diego Gutierrez.

New York, home to major operations

32% of the deals in the sector took place in New York, which is not surprising as it is the advertising capital of the world. Among the companies that have received funding are Adaptly, social media advertising platform, which in May 2012 received $10.5M of Valhalla PartnersTime Warner Investments y Social Starts.

California and Massachusetts are next with 21% and 13% of deals, respectively. Internationally, China and the UK are the main players, with WPP as the main investor.

INVESTMENT

Other posts that may interest you

Media Sector USA: VCs Invest $331M in 60 Startupss

Venture capital invests in new advertising models

Marketing software investors will remain active in 2013

If you want to know more or if you think we can help you, do not hesitate to contact us.

The M&A Professionals

Meet our services

MEET
OUR
METODOLOGY

Do you want to be up to date?

SUSCRIBE OUR NEWSLETTER

Our diferentiation

Market Research Technology
Our team of market analysis specialists is continuously analyzing the investments of the most active markets in the industry in order to unceasingly contribute ideas of the current market situation and identify the most relevant trends for senior management. We integrate the most relevant sources of information which allows us to discover the most interesting companies for venture capital and similarly helps us to identify the investors with the highest probability of involvement in an M&A process to ensure the success of our sell-side operations.

The reports and deductions of our advisors provide a broad view of the sector, both geographically and from the complementary or adjacent markets perspective.
Technology Data Analytics
for M&A
Advanced data anlytics is a weapon". Intelfin is an artificial intelligence tool we use for investing and creating value in SMEs through competitive analytics and the enterprise environment.

IntelFin consists of a cognitive system, which, through the application of advanced analytical technologies, facilitates the automation of investment and financing decisions in the field of non-listed companies and especially SMEs in high-growth sectors.

The information related to these companies is characterized by their lack of transparency and heterogeneity; thus, it is necessary to develop an advanced analysis which is as much predictive as prescriptive and is developed in a natural language custom, suitable to obtain greater clarity and knowledge of the investment scope.

The IntelFin system focuses especially on analyzing the variables that define and influence the competitive environment of a sector and the positioning of a company, analyzing their influence on future value creation. Therefore, IntelFin supports strategic decision-making to senior management by resolving questions such as:

¿What are my competitors' priorities, strategies and expansion plans? Who's my competition? Which competitor is most likely to grow at a higher rate?
Which areas of activity/business models will receive the most investment? Which sectors are most attractive to investors?
Which companies are going to experience the most growth in the near future? Which companies are most likely to receive investment or be acquired?
Training Methodology
We have developed training programs in an innovative set-up which guarantees our teams the acquisition of technical competences both in the field of corporate finance and in the field of psychology, that is much needed when it comes to negotiation processes.

We have a culture of continuous improvement of our processes, closely related to the use of information systems that allow the enhancement of internal communication between our teams, as well as external communication with our customers. Hence, we extend best practices identified internally in an efficient and rapid manner among our members.

Are you one of those who prefer to be well informed when making decisions?

M&A NEWS
INDUSTRIAL REPORTS
closearrow-circle-o-downchevron-downcrossmenu