By: croatty2
Reply To: None Tuesday, 11 Jan 2000 at 11:33 AM EST
Post # of 17911
The Merger from an Advertiser's Perspective
As we all know ADVERTISING will be our #1 REVENUE GENERATOR.
HyperTV & HyperRadio(a hidden jewel) will flourish as ad $$$$ flows toward the obvious cross promotional opportunities in a world where vertical integration takes on new meaning.
Digital ADCO is no doubt gearing up NOW!!!
ADCO is very well positioned for the targeted, addressable ad universe that will appear SOONER rather than LATER.
As the following article highlights...time frames have collapsed...and IMO IATV will be a major beneficiary.
Madison Avenue enthusiastic over AOL-Time Warner deal
By Isadore Barmash
NEW YORK, Jan 10 (Reuters) - Advertising agency executives on Monday applauded the $160 billion merger of America Online Inc. and Time Warner Inc., saying the combination of the traditional and new media giants heralds new opportunities for their industry.
"It's a heady, awesome deal -- this could be the day of the long-awaited convergence," said Mark Stewart, regional director for the McCann-Erickson North America unit of the Interpublic Group.
"I have only positive thoughts about the merger for both ad agencies and advertisers," said Allan Banks, senior vice president, media, for Saatchi & Saatchi Inc. "It's convergence, something we have all talked about so long, and that makes a lot of sense."
He said the deal "represents an exciting evolution" between traditional and new media companies. "Both CBS and NBC acquired their way into the Internet but they were much smaller deals," said Banks. "This one is so huge that it raises the bar for everyone."
Stewart noted that some advertisers might be hesitant to work with AOL if, for example, their business competes with a Time Warner unit. "I have some concerns, such as to whether McGraw-Hill's Business Week might not feel inhibited working through an Internet that owns Fortune Magazine," he said.
But aside from such worries, Stewart said, the proposed tieup "will change life in American business as we know it. It gives AOL not only access to Time Warner's entire group of magazines, CNN and it satellites, but also the broad-band in the cables at home. Time Warner gets the millions of users of AOL who include a wide spectrum of consumers, in all ages, educational levels and incomes."
The focus for media and media access companies has always been to guarantee content and distribution, ad executives say. The combination of the two media giants will give advertisers and their agencies multiple media outlets. "Here, in one great move, they get what they want," said Stewart.
Jerry della Femina, acknowledged as one of Madison Avenue's most creative leaders, spared no hyperbole, saying the AOL-Time Warner merger is "The future, the best thing that could happen. The consolidation of an old-line media company with the leading Internet provider puts Time Warner
into the 21st century," he said.
Della Femina added: "Actually, it collapses time for both companies. Time Warner wanted to get into cyberspace but it would have taken it 10 years. AOL wanted to get into media but that would have taken it 10 years."
Copyright 2000 Reuters Limited.
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