What M&A Means for Programmatic Marketers (Digital Marketing)

Topic – What M&A Means for Programmatic Marketers (Digital Marketing)
Topic From – Digital Marketing In Computer Science
Book Name – Big Book Of Digital Marketing

🌸 What M&A Means for Programmatic Marketers (Digital Marketing)

Let’s group M&A deals into three scenarios:

1. The land grab or double-down: Two companies in the space combine, or a big company buys a smaller one to gain market share and/or access to a new  geographic territory.
This situation is a clear chance for the acquirer to gain access to a new set of clients and partners while taking out a competitor at the same time. As an example, Ensighten recently purchased Tag man. These transactions make sense, but if I am on the client side of that table, what does this kind of deal do for me? Usually the acquired-side client is gobbled up into a bigger system with new processes and workflow to deal with, and the consolidation could possibly lead to higher rates.

2. Whitespace: When a company acquires a complementary business to fill in one of its existing soft spots and help complete a strategic vision.
The benefit of filling in the whitespace is that the whole is often greater than the sum of the parts. For a marketer, this is the best-case scenario, because it should allow the two companies to grow with each other, offering better products and services. Examples of this kind of acquisition are Dstillery (formerly Media6Degrees) buying Every screen Media to get into mobile, and Ignition One purchasing notice for the DMP and email capabilities

3. Random:  A big company makes an acquisition just because it can.
Sometimes acquisitions leave you scratching your head, such as Microsoft buying Aquantive, Google purchasing Motorola, or HP buying Palm. Yes, these could be profitable business lines, but it’s not evident that they need to be part of one greater company. Often you’ll see the acquired company shut down a few years later. This situation was common during the dot-com bubble and is less than ideal for clients.

There is uncertainty for incoming clients even in the best-case scenarios. The best that can happen is a warm welcome with new, complementary products and services that add value to the relationship. Marketer clients also need to hope for continued relationships with their day-to-day contacts (there’s always the chance of employee cash-outs).

The worst possibility is that an advertiser’s trusted partner is shut down as a direct result of a sale. That forces the marketer to sign on with another set of partners to maintain their programmatic operation, which means new products, work-flows, and people.

There are plenty of great successes to dispel any doom and gloom, but clients should always do their due diligence and seek out answers for the following:

• Which of the three acquisition scenarios is this?
• What will change in the near- and long-term?
• Will my client-facing teams change?
• Does my contract automatically get assigned to the new entity?

The final piece is culture and client service. Each company has its own DNA that attracts clients. It’s very hard not to change that DNA during a big acquisition, and there is no magic bullet for transposing culture from one entity to another. The best advice for marketers is to do their digging and always maintain a few programmatic partners in a testing pattern. If things start to decline, find a new home for the business.

For More Questions And Answers, Please Use Our Search Option To Search Those Answers. Please Keep Visiting – www.Study24Hours.Com For More Study Materials. Thank You For Visiting This Site !!

Write a Comment

Your email address will not be published. Required fields are marked *