WPP acquires 24/7 Real Media in $649m cash deal

by Joanne Payne, Brand Republic 17-May-07, 13:20

LONDON - WPP has acquired global digital marketing firm 24/7 Real Media for $649m (£329m) in cash.

According to WPP, the move will strengthen its position in the rapidly growing digital marketing sector, enhancing the group's position in search marketing, digital media and giving it stronger technology skills.

Sir Martin Sorrell, chief executive of WPP, said: "Our clients and therefore our industry are becoming more media- and technology-driven. 24/7 Real Media significantly enhances our capabilities, technological resources and talent, as well as adding to our geographic coverage and our measurable skills."

24/7 Real Media, founded in 1995, spans online media, search and technology, and boasts one of the largest CPM-based media networks with more than 950 participating sites and 115m monthly unique users worldwide.

Its search business provides clients with strategic advice and consulting on search engine optimisation and management for Google, Yahoo! and MSN, as well as other search engines and shopping comparison services. Its technology business offers an advertising platform to more than 400 clients.

David J. Moore, chairman and chief executive of 24/7 Real Media, said: "This transaction will greatly strengthen our product offerings and will be highly beneficial to clients of both companies.

"24/7 Real Media will remain the largest, publisher-focused technology company in the sector, with the second-largest installed base of ad-serving technology clients globally, and working as part of WPP will be a tremendous benefit to our ad-serving and global web alliance clients."

The acquisition will strengthen WPP's position in the search engine management area and increase search spend under management by $200m, taking search volumes to more than $450m. It will add to income in Asia through 24/7's presence in Korea, Australia and Japan.

In April, Google paid $3.1bn to acquire DoubleClick, which is 24/7 Real Media's bigger rival in the digital display ad management market.

In the wake of that deal Sorrell revealed he was concerned about the combination of the two companies and how much advertiser data they would control between them.

"Google is a short-term friend and a long-term enemy and probably the shorter term just got a little bit shorter and the longer term got a bit closer as a result of the DoubleClick acquisition," he said at the time.