Mediaplex Snaps Up Ailing Interadnet's Clients
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Mediaplex will take over several client relationships from struggling competitor Interadnet, in a move that will boost the San Francisco-based online ad technology player's outreach to ad agencies.
Like Mediaplex, Raleigh-based Interadnet develops and markets a line of online ad servers, and like the larger rival, found moderate success in selling to agencies. But with the recent downturn in Internet advertising, sources say the firm's principals found it more advantageous to largely exit the U.S. market altogether.
As a result, the deal with Mediaplex hands over not only lucrative agency accounts like Deutsch Media, Ogilvy Advertising, and TBWA\Chiat\Day, but also the company's domestic ad sales team, most of whom will be appended to Mediaplex's New York office.
Financial terms of the agreement were not disclosed.
"The agreement helps us out with an extended force that will bolster sales reach in the East Coast, as well as added revenue through Interadnet's existing clients, who are going to be switched over to our technology," said Mediaplex spokesperson Elizabeth Lloyd. "It will open up a lot of doors to agencies with whom we haven't had much business."
That's a key segment for Mediaplex, which sees about 60 percent of its revenues coming from sales of its ASP and full-service products to agencies. Current ad agency customers include Young & Rubicam, units of Publicis, Freestyle Interactive and Ninedots.
"This acquisition represents Mediaplex's continuous drive to build our client base and grow our sales and technical operations," said Mediaplex president and chief executive Tom Vadnais.
While privately-held Interadnet is ceding the domestic market to Mediaplex and bigger competitors like DoubleClick, the firm will continue to serve European customers, according to sources. Such a proposition could be tricky -- Alley-based 24/7 Media, for instance, is planning to exit the European ad serving and media space, citing fewer profitable opportunities than at home.
Following the agreement with Mediaplex, Interadnet will also retain rights to its intellectual property, which sources say the company hopes to parlay into additional income.
Spokespeople from Interadnet did not return calls by press time, although president and CEO Bill Freeman said in a statement that his firm would do "what ever is necessary to insure a smooth transition for each and every client."