Marketing communications group Aegis Group Plc on June 12 announced the acquisition of Communicate2 in India. Regarded as one of India’s leading search marketing and contextual advertising firm, Communicate 2 has a team of over 150 people and is purely focused on search.
Following the acquisition, Carat will offer search in India as part of communications planning, while Isobar will start building digital capabilities along with Communicate2 for the Indian market, sharing a number of resources and creating a fully integrated marketing offer in India.
Commenting on the acquisition, both Patrick Stahle, CEO, Aegis Media, and Nigel Morris, CEO, Isobar, said, “This is a good acquisition for us. Communicate2 operates in several very interesting spaces in a market we have identified as strategically very significant. The breadth of Communicate2 offer will allow us to become established in these disciplines, and expand in existing core areas, including digital, where we are already the market leader.”
Communicate 2 is an endeavour to remove advertising as an expense from the profit and loss accounts and replace the same with the term ‘cost of sale’. Communicate2’s current clientele includes ICICI Bank, MSN, Reliance Money, Kingfisher, Apna Loan, and Standard Chartered, among others.
The global Internet advertising market currently stands at $15 billion, while the Indian online advertising market expected to grow from Rs 4.8 billion in 2008 to Rs 11 billion by 2012, growing at a CAGR of 32 per cent. This partnership will enable Aegis Media to include search into communication solutions from media planning arm of Carat in India and launch Isobar as the digital marketing solution for the Indian market. Further expansion in India will help support the increasing number of international clients serviced in the Asia Pacific region for Aegis.