Great piece in WSJ today on whether the blizzard (not flurry) of online ad "solutions" acquisitions will actually pay off.
I contend WPP's purchase of 24/7 Real Media (for an unbelievabe $649 million) will be far and away the most disastrous of these deals. A buy-side owner now hyping in-house sell-side products is inherently flawed and screams conflict of interest.
From the article: "WPP executives say 24/7 Real Media should continue to expand quickly by selling services to WPP's existing clients."
So how does that pitch go? "Listen, I know you're happy with Atlas for ad serving, ValueClick for network inventory and iCrossing for SEM, but dump all that and use our new toys for the sake of convenience."
Just sprinting off the cliff...
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I was recently in a meeting with communications execs explaining what 24/7 Real does and how that could fit into a holding company model. In theory, I actually think the ad network could be the inside sales group to develop work for the ad agency. I don't really think WPP is thinking that way, but using the relationship in the other way could work. 24/7 Real is nothing more than a sales organization; to advertisers (incl. other agencies) and publishers. You know who is spending considerably online, pitch them on your blah blah strategic, creative and other services?
Just a thought.
A round of golf soon, no?
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