How mobile marketing is changing the landscape
The impact of media platform proliferation continues to revolutionise the advertising and marketing industry. Whilst spend on most other forms of marketing have been hit by the recession, digital marketing remains one area of high growth, as the results of the recent Kingston Smith W1 survey “Financial performance of marketing services companies” demonstrates. There are many new start up businesses which offer specialist advice in the area of digital marketing, and we have especially seen the rise of specialist social media and mobile marketing agencies. Therefore, advertising and marketing agencies need to ensure they stay ahead of the game, and have the capability to offer this specialist advice, in order to be able to differentiate themselves from the competition.
Things are moving at a very fast pace and the emergence of digital technologies has transformed the way that content can be created, distributed and consumed and has created many new opportunities. Mobile phones and Blackberry’s have long been advertising channels and ways of reaching consumers in a more targeted way, and mobile marketing has for some years been talked about as the next big thing, but never really took off as quickly as people expected it to.
However, most marketers now believe that with the arrival of the iPad and similar devices, the age of mobile marketing is finally here and it is about to take off in a big way, and over the years will become central to many brands’ communication activity. Marketing with mobile devices is now one of the highest growth areas in the marketing sector. In fact, in many emerging markets mobile devices have replaced computers as the primary point of access to the Internet.
That’s why earlier this year M&C Saatchi acquired a leading mobile marketing specialist advertising agency, Inside Mobile. This purchase will enable them to offer specialist expertise to their Global client base.
Inside Mobile was launched in 2006 by Dusan Hamlin and James Hilton and was one of the first international, full service mobile marketing agencies to launch in Europe specialising in international mobile marketing strategies. The business was launched with the ambition to provide creative mobile marketing solutions to international brands and they soon won several international awards for best use of mobile. Their success and fast growth meant that they were a prime acquisition target.
When making any acquisition, one needs to ensure that sufficiently thorough legal, tax and financial due diligence is carried out in order to ensure that not only is the right price being paid, but the deal is structured correctly and there are no skeletons to come out of the closet at a later date.
Therefore M&C Saatchi called upon Kingston Smith W1, media technology specialists, in the West End and Devonshire Corporate Finance, part of the Kingston Smith group to carry out the financial and tax due diligence.
Our understanding of the media landscape and partner led approach meant we were able to ensure that we focused on the key risk areas. Important to remember when carrying out any such exercise is that everyone WANTS to get a deal done and therefore discussions need to be handled with care. Using only senior members of staff on the project, ensured that the process went smoothly and also enabled real insight to be added to the report.
If you require assistance with financial or tax due diligence then contact:
Esther Carder – partner Kingston Smith W1
Tel: 020 7304 4646
Steve Neal – Director Devonshire Corporate Finance
Tel: 020 7566 3583