Publicis Groupe, the third largest Communications Group globally, has acquired two digital media affiliated companies. In a bid to reaffirm dominance in the Digital segment, Publicis has bought New Delhi-headquartered iStrat & Mumbai-based MarketGate.
What can the companies offer?
Besides listing illustrious clients like Hero Corp, Hindware, Maruti Suzuki, NASSCOM and Nestlé among others, iStrat is an almost 10 year old experienced digital media agency founded by Navneet Singh Sahni (CEO) and Sonya Sahni (Marketing Head). The company specializes in providing & running digital communications services, including e-commerce storefronts, search engine optimization, social media and rich media. In other words, iStrat is well equipped to manage online presence for any brand that chooses to make a strong foray into the World Wide Web & the fact that its operations are spread across continents, gives the Publicis group a wider reach & scope.
Apart from business expansion, the Publicis Groupe has sought to have a richer knowledge base via acquisition of MarketGate. Founded almost 8 years ago by Shripad Nadkarni (CEO) and Sharda Agarwal (Executive Director), the company offers brand and business development consultation. Global MNCs like Colgate, Dabur, General Motors, GlaxoSmithKline, Godrej, few banks, radio companies & others depend on the market intelligence provided by MarketGate to keep a close watch on self-performance.
Post acquisition, Publicis has interestingly asked the founders of both the companies to continue leading their respective teams, but iStrat will be rebranded as Publicis iStrat, while MarketGate will retain its title & both will operate as a unit within Publicis Modem, a global digital network of Publicis Worldwide.
Marketing Agencies have gained in prominence over the past couple of years. With the advent of Social Media & other online avenues to push brand related messages, they will continue to exert significant influence over majority of the content. While inorganic expansion via acquisition offers the shortest route to growth, is it better than internal growth metrics?
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