As mentioned in many previous blog postings, the world of media is changing at an extreme pace… and the last 2 weeks have shown the merger mania is just starting.

The two big announcements:

1. WPP’s purchase of 24/7 Real Media
2. Microsofts’s purchase of aQuantive (owner of Avenue A/Razorfish)

So what do these two events have in common? Well other than the monster price tags – WPP’s $650M whopper and Microsoft’s $6B astro-bucks… one other thing comes to mind…. Vertical Integration.

Think about it, WPP now gets a search marketing company, a display advertising network and magic… an ad serving platform as well. How’s that for vertical integrating a company in the search business with one big swing?

And it makes perfect sense, Sir Martin Sorrell understands the backroom analytics and technology platforms can drive incremental revenue, are scalable inside and outside the walls of WPP and it allows WPP to control more of his customers marketing revenue.

Now for Microsoft and aQuantitive. Although, speculation is that Microsoft might unload Avenue A/Razorfish and keep the other assets, I think Microsoft is thinking vertical integration as well… with one of the premiere interactive agencies. Now they can vertically integrate creative and media strategy and sell these assets which will make their backend operations look great. Also, another fine move.

Your thoughts?

Scott

WPP Microsoft aQuantive media HP Hewlett Packard