90% of company executives across US are expecting to enter or expand internet marketing through merger and acquisition. 54% of prospective buyers and 42% of sellers expect to complete the transaction in 2006.


90% of company executives across US are expecting to enter or expand internet marketing through merger and acquisition. 54% of prospective buyers and 42% of sellers expect to complete the transaction in 2006.

AdMedia Partners conducted a mail and web-based survey during November and December 2005.

AdMedia Partners contacted 3,200 executives, from across the US, associated with advertising and marketing services.

The findings of the survey include:

1. The overwhelming majority of respondents anticipate strong M&A activity in internet marketing

2. More than 90% of respondents expect to enter or expand in at least one sector in 2006. Internet marketing, marketing/strategic consulting and experiential marketing are among the most popular areas for expansion.

3. The most notable increase in valuation parameters was seen for internet marketing firms with anticipated multiples of 6-10 times pretax profit, up from 5-7 times last year.

4. Within internet marketing, advertising and search marketing were most often chosen as the likely top growth sector.

5. Advertising and marketing services executives are optimistic about growth prospects for overall advertising expenditures, internet advertising, and their own businesses in 2006

To read the full report titled “Merger and Acquisition Prospects for Marketing Services and Internet Marketing Firms”, click here.

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