Furthering its drive to become the leading global online rep firm, Real Media has acquired a majority stake in Munich-based Cubicmedia, the largest independent Internet ad sales firm in Germany.
The company will operate under the name Real Media Germany and continue to represent German sites including Excite, Investornet, BusiWeb and GameChannel.
TAKING ON COMPETITORS
While Real Media, New York, focuses on ad sales and management for online newspapers in the U.S., it is expanding its portfolio in Europe and other global markets to take on competitors such as DoubleClick and 24/7 Media, said President Dave Morgan.
That means that, in addition to representing online newspapers, Real Media will take on more portals and content properties outside the U.S.
"While we will do our best to aggregate local audiences globally, building a market brand or image greater than DoubleClick or 24/7 in the U.S. may not be possible," Mr. Morgan said.
DoubleClick currently has offices in Australia, Canada, Japan and several European countries, while 24/7 has 11 offices in Europe and nine in Asia.
To leverage the sales force, client base and other assets of its Swiss-based parent PubliGroupe, Real Media is aggressively opening new offices globally, particularly in Europe, as well as partnering with or acquiring Internet ad sales companies in other parts of the world.
Prior to the Cubicmedia acquisition, Real Media Europe had offices in London, Paris, Switzerland, Stockholm and Madrid, staffed by more than 60 people.
Last month it opened a Korean office, partnering with Korean conglomerate LG Group to manage the office, and it has offices in South Africa, Mexico, Seoul and Hong Kong.
RELATIONSHIP MOST IMPORTANT
"Our most important asset is our relationship with PubliGroupe," said Mr. Morgan, noting that it is a $2 billion advertising conglomerate with offices in 40 countries. "We can leverage that infrastructure quite a bit by entering into markets [where PubliGroupe has a presence]," he added.
The global expansion is touted in Real Media's current print and online campaign, developed by M&C Saatchi, New York, with the tagline "Delivering local online audiences on a global scale."
Copyright February 1999, Crain Communications Inc.