Aug 13

Digital Marketing Solidifies Position. Thank You Publicis.

As reported in a recent article in the Wall Street Journal, "Publicis Groupe SA (PUB.FR) Sunday said it will acquire Microsoft Corp.'s (MSFT) digital advertising agency Razorfish for $530 million." Publicis reported that as this acquisition is completed, approximately a quarter of their annual revenues will come from digital communications. Some interesting points about this deal:

  • Microsoft is also committing to spending a minimum amount for digital marketing services with Razorfish each year, Publicis said.
  • Publicis' clients will be able to purchase display and search advertising from Microsoft on favorable terms - So Microsoft is double dipping?
  • Razorfish, which has about 2,000 employees and an estimated revenue of $370 million to $380 million this year - That's almost $190,000 in revenue per employee.
Outside of the random facts above; the real pudding is in the pie. Digital Marketing's share of the pie keeps getting bigger. This investment into one of the largest digital agencies only solidifies the fact that while traditional advertising continues to lose ground, our skillsets require a continuing evolution with what is the hottest in marketing to consumers. Whether it be mobile, web or some type of interactive offline event; you better be integrating them all or you might be missing out. From Wikipedia: Digital Marketing Digital Marketing is the promoting of brands using the Internet, mobile and other interactive channels.