Revenue ($ in millions) | 2010 | 2009 | % chg |
Worldwide | $613.4 | $514.3 | 19.3 |
U.S. | $584.4 | $487.8 | 19.8 |
Non-U.S. | $29.0 | $26.5 | 9.4 |
Ticker: ADS (NYSE) |
Asterisk (*) indicates figures are Ad Age estimates.
Fast facts: Alliance Data (NYSE: ADS) provides data-driven and transaction-based marketing and customer loyalty solutions. Its range of integrated outsourced marketing solutions includes customer loyalty programs, database marketing services, marketing strategy consulting, analytics and creative services, permission-based email marketing and private-label and co-branded retail credit card programs.
The company's 10-K for year ended December 2010 explained: "We focus on facilitating and managing interactions between our clients and their customers through a variety of consumer marketing channels, including in-store, on-line, catalog, mail and telephone.
"We capture and analyze data created during each customer interaction, leveraging the insight derived from that data to enable clients to identify and acquire new customers and to enhance customer loyalty. We believe that our services are becoming increasingly valuable as businesses shift marketing resources away from traditional mass marketing toward more targeted marketing programs that provide measurable returns on marketing investments."
Alliance Data's ranking among agency companies is based on reported revenue of Epsilon, its marketing-services unit.
Alliance Data on April 25, 2011, announced an agreement to acquire Aspen Marketing Services for $345 million, expanding the agency business of Alliance Data’s Epsilon operation.
Upon the deal’s expected closing in second-quarter 2011, Alliance Data said, Epsilon’s agency business and Aspen will be integrated into one agency platform operating under the Aspen Marketing Services name.
In making the announcement, Alliance Data said Aspen was projected to generate $250 million in revenue in 2011. Alliance Data said Epsilon (including Aspen) would have 2012 run-rate worldwide revenue of about $1 billion.
Ad Age ranked Aspen Marketing, a marketing-services agency, as the world's No. 25 agency company in 2010; Epsilon ranked No. 11.
Alliance Data reported 2010 worldwide revenue of $2.8 billion split among three segments: LoyaltyOne (Air Miles reward program in Canada); Epsilon (direct marketing); Private Label Services and Credit (private-label retail credit card programs).
Alliance Data was formed from the 1996 merger of two entities acquired by private-equity firm Welsh, Carson, Anderson & Stowe: J.C. Penney Co.'s transaction services business (BSI Business Services) and Limited Brands' credit-card bank (World Financial Network National Bank). Alliance Data went public in June 2001.
In May 2007, Alliance Data agreed to be bought by private-equity firm Blackstone Group for $7.8 billion, including assumption of debt. After battling over Blackstone's obligations in the deal, Alliance Data on April 18, 2008 terminated the deal.
Alliance Data bought Epsilon in October 2004.
Alliance Data is based in Plano, Texas.
In its own words: Epsilon is one of the industry's leading marketing-services firms, with a broad array of data-driven, multichannel marketing solutions that leverage consumer insight to help brands deepen their relationships with customers.
Services include strategic consulting, acquisition and customer database technologies, loyalty management, proprietary data, predictive modeling and a full range of direct and digital agency services, including creative, interactive web design, email deployment, search engine optimization and direct mail production. Epsilon is the world's largest permission-based email marketer.
In 2010, Epsilon won a great deal of new business and significant client expansions/renewals including top global marketers such as Kraft Foods, 1-800-Flowers, Norwegian Cruise Line, Barclaycard and Macy's.
Epsilon conducted and released proprietary research including Customer Experience Marketing Study, Pharma and Social Media Study, Quarterly Email Trends and Benchmarks, Private Label Study, and Media Preferences Research.
New hires in 2010 included: Terry Young (President, Purple@Epsilon), Eric Stein (exec VP, Digital Strategy), Quinn Jalli (VP, Deliverability), Doug Yokoyama (VP, Mobile and Social Media), Mike Doubrava (VP, Digital Strategy) and Paul Johnson (VP, Technology).
Purple@Epsilon added: Ian Fearn, Laurie Seltzer, Scott Richards and Alex Grady.
Strategic & Analytic Consulting Group added: Stacey Raiche and John Randolph.
Epsilon CEO Bryan Kennedy was elected to the DMA board. Epsilon won a number of awards and honors for work with clients such as Marriott and FedEx.
Top executive: Ed Heffernan, pres & CEO, Alliance Data; Bryan Kennedy, pres & CEO, Epsilon
Headquarters: Alliance Data Systems Corp.'s Epsilon/7500 Dallas Parkway, Ste. 7800, Plano, Texas 75024/Phone: (214) 494-3000
http://www.AllianceData.com