After being a little nervous about the price declines over the past few days, I spoke to a friend who works in a digital media botique in London to get his thoughts on DIG.
Here are some key points (in his opinion)
- Digital media is by far the fastest area of media spend growth. Print is declining rapidly and TV is stagnant.
- The two businesses that currently exist within DIG are at the least sexy end of the spectrum of digital marketing. However my friend was impressed that they had iTunes as a client until recently as all companies within Apple hold very high standards for their media spend, and almost all is done in house.
- The three businesses that are part of the acquisition are at the higher margin end of the digital media chain.
- Asia (esp Singapore) is rapidly becoming a powerhouse in the media world, challenging the existing centres of London and New York.
- Next Digital: 'The Traditional' digital advertising agency. Success will depend on attracting and retaining quality staff.
- Jericho: This is a high growth area of the market. Could be opportunities to cross sell to/from other areas in the group.
- Asia pacific eCommerce: Could not work out which companies this realtes to from the Asia Pacific Digital site.
- All companies in the group have some impressive blue chip clients that will give them industry credibility when tendering for more work.
The conversation with my friend re-excited me about the prospects of the group post merger and I got another parcel at 1.2c yesterday as they seem extremly cheap, and the recent decline has not been on the back of any announcements.
After being a little nervous about the price declines over the...
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