International : Microsoft, AQuantive Close Deal

Computer Titan Splits Its Ad Business Into Three Groups After Acquisition

e4m by exchange4media Staff
Published: Aug 14, 2007 10:13 AM  | 4 min read
International : Microsoft, AQuantive Close Deal

NEW YORK (AdAge.com) -- The $6 billion Microsoft acquisition of aQuantive has closed, and the software giant has reorganized its ad-focused business into three groups.

Within the new advertising organization, aQuantive CEO Brian McAndrews leads the advertiser- and publisher-solutions group; Steve Berkowitz helms the online-services group responsible for audience; and Satya Nadella is responsible for the search and ad-platform group, which is focused on technology. All report to Kevin Johnson, president of Microsoft's online platform and services group.

Two ad-sales groups
The reorg will have two ad-sales groups, one under Mr. McAndrews, which will sell the ad platform and the ad network, and the Microsoft Digital Ad Sales group within Mr. Berkowitz's group, which will sell more of the high-end branded ads.

AQuantive has three businesses: an ad-serving technology, an ad network and an online-marketing firm, Avenue A/Razorfish; all stay under Mr McAndrews' purview as part of the advertiser/publisher solutions group.

In an interview this morning, Messrs. Johnson and McAndrews emphasized the importance of owning the ad platform in both online and other emerging areas. Having a platform that improves the efficiency of the buying and selling process; uses sophisticated data and algorithms to improve ad serving; and offers tools for advertisers and publishers, such as campaign planning tools and optimization tools, "is a revenue and profit driver -- that's our view," Mr. Johnson said when asked whether ad serving is becoming a commodity.

The moves by Microsoft echo those made by Yahoo late last year, in which the web portal spawned three groups: one responsible for audience, one for publisher and advertiser relationships, and one for technology.

Microsoft, as it has in the past, touted a $40 billion online ad market this year and a $600 billion global ad market.

"We do intend to be a player as all media become digital, as has always been our vision," Mr. McAndrews said.

Investment in emerging media
He added that there will be investment to grow in other emerging media and said Microsoft and aQuantive have long shared that vision, citing Atlas' investment in ad serving for video on demand and online video and Microsoft's investment in IPTV. (Atlas is Avenue A's ad-serving unit.) When asked if Microsoft were still in an acquisitive mood, the execs didn't rule anything out but said they were happy with the assets they have.

"Our short-term focus is to continue the integration process that has begun," Mr. McAndrews said. "There are no gaping holes at all."

Yosef Mehdi, who had been Microsoft's chief advertising strategist, will move to a new role under Mr. Johnson that was described as "very large strategic partnerships" that span multiple Microsoft divisions, such as the online-service group and the entertainment and devices division, international partnerships and early-stage companies.

As the rules of the integration are laid out, all of Madison Avenue's eyes will be on Mr. McAndrews to see his approach to combining the largest buyer of online media with one of the largest sellers of it.

Hanging on to the agency
Despite speculation to the contrary, Microsoft has made no secret of its desire to hang on to the agency side of aQuantive's business. Avenue A/Razorfish will operate independently of Microsoft and recently upped Clark Kokich from president to CEO to help reinforce that.

Last month Mr. Kokich told Ad Age that Microsoft and MSN will "have to continue to earn our client's business, and at the same time, we don't expect to get any preference from Microsoft or MSN." Of course, it will take time for both sides to prove to clients -- Avenue A/Razorfish to marketers and MSN to other agencies -- that it won't offer preferential treatment.

Still, it begs the question: If the two will be completely separate, why would Microsoft keep the agency side of aQuantive's business? Mr. Kokich couched his comments by explaining that executives believe there are opportunities to work together. Both Microsoft and Avenue A/Razorfish believe in a future of ubiquitous digital experiences. He said Microsoft's Silverlight technology, which is the company's Flash competitor, is one example of an area where there could be collaboration.

"We've already been very aggressive in exploiting that new technology," Mr. Kokich said, adding that one of his top technologists was devoted full time to developing Silverlight's capability even before Microsoft announced it planned to acquire aQuantive. "There'll be more opportunities for us to demonstrate to the industry what's possible," he added.

The one thing they won't have to get over? Geographical differences. Both companies, incidentally, are headquartered in Seattle.

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E4M Our strategy is to target younger audiences through Sports: Rajiv Dubey, Dabur

The Head of Media at Dabur India spoke exclusively to exchange4media on the World Cup, associating with Indian Idol, the company’s digital spending and much more

e4m by e4m Staff
Published: Oct 27, 2023 6:15 PM  | 1 min read
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With quirky campaigns, memes and moment marketing, timed with the ongoing World Cup and particularly the India-Pakistan matches, Dabur India has got considerable consumer attention for its popular brands – Red Paste, Cool King Hair Oil, Chyawanprash, Dabur Vita and the recently launched Bae Fresh Gel toothpaste.

The 140-year-old company is going big on key sporting events, World Television Premiere (WTP) movies and reality shows. It is now gearing up to become the title sponsor of popular talent show ‘Indian Idol’ on Sony TV for the first time, shared Rajiv Dubey, who leads the media strategy at Dabur.

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Swapan Seth's new book 'COOL' is out

The book is a reflection of the author's 'eclectic taste across categories'

e4m by e4m Staff
Published: Oct 27, 2023 6:07 PM  | 1 min read
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Advertising professional and art collector Swapan Seth has announced the launch of his new book COOL. The book is described as "a ready reckoner to the hip and the happening, of the known and the very unknown."

The book is a reflection of the author's "eclectic taste across categories: from boltholes to exotic hideaways."

COOL has been published by Simon & Schuster India and is available on Amazon.

Seth is an ad veteran with a long and illustrious career in the industry. He became the youngest-ever Creative Director at Clarion at age 24. He was VP at 26 at Trikaya Grey. Two years later, he started his agency Equus.

He writes for publications such as The Economic Times, Hindustan Times and India Today. This is his second book and he has previously published THIS IS ALL I HAVE TO SAY.

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Disney Star signs 9 sponsors for Asia Cup PAK

Charged by Thums Up, Nerolac Paint+, Amazon Pay, Jindal Panther, My11Circle, MRF, Samsung Galaxy Z Flip5, Wild Stone and Thums Up come on board

e4m by exchange4media Staff
Published: Aug 26, 2023 11:48 AM  | 1 min read
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e4m Staff Disney Star has signed nine broadcast and digital streaming sponsors for the upcoming Asia Cup.

Charged by Thums Up, Nerolac Paint+, Amazon Pay, Jindal Panther, My11Circle, MRF, Samsung Galaxy Z Flip5, Wild Stone and Thums Up have come on board for the upcoming tournament.
As reported earlier by exchange4media, Disney Star has sought Rs 26 crore for the co-presenting sponsorship on TV and Rs 30 crore for Disney+ Hotstar.

According to industry sources, the associate sponsorship on Star Sports has been priced at Rs 19.66 crore, whereas for the ‘powered by’ sponsorship on Disney+ Hotstar, the broadcaster is seeking Rs 18 crore.

As per the information available with exchange4media, Disney+ Hotstar has three sponsorship tiers-- co-presenting (Rs 30 crore), powered by (Rs 18 crore) and associate sponsorship (Rs 12 crore). The broadcaster is offering an estimated reach of 120-140 million for co-presenting sponsors, 90-100 million for powered by and 60-70 million for associate sponsorship.

A spot buy for 10 seconds has been priced at Rs 25 lakh for the India vs Pakistan matches, while for the non-India matches, the ad rate for 10 second is Rs 2.3 lakh. The India matches plus the final for ODIs has been priced at Rs 17 lakh per 10 seconds.

Asia Cup is scheduled to be held from 30 August, 2023, to September 17, 2023.

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Sorted 360 wins creative & social media mandate of Reliance Mall

The agency will manage offline and online campaigns for Reliance Mall

e4m by exchange4media Staff
Published: Aug 26, 2023 10:54 AM  | 1 min read
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Sorted 360, an integrated creative and social media agency, has won the mandate to providing brand solutions for Reliance Malls across India.

“Sorted 360 is set to enhance Reliance Malls' market presence with their unparalleled creative prowess and strategic thinking,” read a press release.

“Sorted 360's commitment to pushing the boundaries of creative communication aligns perfectly with Reliance Malls' ethos. With a pan-India presence spanning across 19 cities and growing, Reliance Malls has consistently captivated customers by offering an array of Reliance brands and third-party fashion & lifestyle brands. The mall has established an unparalleled connection with its patrons through superior quality, a remarkable value proposition, and an unmatched shopping experience,” it read further.

"We are thrilled to welcome Sorted 360 as our trusted partner in advancing our brand presence across the nation," said the Head of Marketing at Relaice Malls. "Their proven expertise in retail, shopping center management, and innovative creative strategies make them the perfect fit for our vision."

"Partnering with Reliance Malls is a testament to our commitment to shaping extraordinary brand experiences," remarked Prerana Anatharam, Co-founder of Sorted 360. "We are excited to leverage our strategic and creative acumen to further elevate Reliance Malls as the epitome of convenience, choice, and excellence."

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e4m by exchange4media Staff
Published: Aug 25, 2023 4:39 PM  | 1 min read

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e4m by exchange4media Staff
Published: Aug 25, 2023 4:38 PM  | 1 min read

KlugKlug onboards Hemang Mehta as Country Manager for Indias

Mehta was most recently Head of Agency Relationships at Network 18 Media & Investments

e4m by exchange4media Staff
Published: Aug 24, 2023 3:35 PM  | 1 min read
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KlugKlug has appointed Hemang Mehta as its Country Manager for India.

Mehta will play a pivotal role in driving KlugKlug's growth and expansion within the Indian market and be responsible for Sales & GTM Strategy

Prior to that, he has also represented organisations like Exponential (now VDX.tv), India Today Digital and Rediff.com. His expertise spans various domains including digital media sales, mobile marketing, media planning, and buying, social media marketing, and more.

Hemang Mehta expressed his enthusiasm about joining KlugKlug, saying, "I am thrilled to be a part of KlugKlug, a forward-thinking platform that is reshaping the influencer marketing landscape. As much as I look forward to collaborating with the exuberant team at KlugKlug, I am super excited to interact with the brands to deliver powerful data-backed Influencer solutions that will guarantee business outcomes."

Commenting on the appointment, Kalyan Kumar, Co-Founder and CEO of KlugKlug, stated, "We are excited to welcome Hemang Mehta to our team as the Country Manager for India. His extensive experience in digital media sales and marketing will be instrumental in driving our efforts to provide influencer marketing solutions to our clients. We believe Hemang's leadership will be key in scaling our operations and expanding our reach within the Indian market."

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