The total price tag for the acquisition of marketing service, marketing technology and multi-channel marketing companies jumped 69% in 2005 to $46.1 billion over the previous year, according to PetskyPrunier LLC, an investment bank that provides merger and acquisition services.
Analysts believe the spike is based on the demand on the marketing industry to mesh traditional media campaigns with promotions on the Internet.
“Because of the continued integration and convergence of traditional and online promotions, marketers have developed better tools and skill sets in marketing intelligence to more effectively communicate with audiences,” said Don McKenzie, president and CEO at New York, NY-based PetskyPrunier.
Mixing traditional promotions with online marketing has paid off for companies who do it resulting in a better return on marketing investment, said McKenzie.
And if 2005 is an indicator, 2006 is expected to be another banner year in acquisitions of marketing companies adept at reaching Web-enabled consumers who flock to online promotions.
Several firms that use the Internet and other guerilla marketing methods to build brand awareness for their clients have already been acquired or are in liquidity event discussions including Intelliseek, M80, Ammo Marketing and BuzzMetrics.
