Donovan Data Systems and MediaBank to merge to form MediaOcean,
pending US government approval
Donovan Data Systems, Inc. (DDS) and MediaBank, LLC will merge their operations to form MediaOcean, a company formed to create the unified operating system for the advertising industry. MediaOcean combines the scale and expertise of DDS and MediaBank, the two leading technology providers in the advertising industry, to offer its customers a revolutionary, open, global, cross-media platform.
Why did this merger occur?
Short answer: to enable us to better serve our customers.
The merger’s rationale rests on four strategic pillars:
1. Technology and data are more vital for advertising agencies and advertisers than ever. It is imperative that advertisers have access to a global advertising operating system that creates efficiencies and streamlines and simplifies access to media data.
2. This merger will produce a company that can create new platforms and technologies—and cost savings that it can pass along to clients.
3. The merger transforms DDS and MediaBank from being applications-oriented businesses into an entity that provides optimal services on a global scale.
4. The merger allows MediaOcean to invest in future open platforms and technology to help address customers' challenges globally. In 2012 alone the company will invest tens of millions in new technologies.
How will this merger impact strategic relationships with current clients and partners?
Before government approval, the companies will exist as is.
In the short term, operations and client and partner relationships will continue as before, existing contracts will be honored. Over time, MediaOcean will leverage the best from DDS’ and MediaBank’s product offerings and talent, as well as investing heavily in future systems and technologies. All of this will be made available to MediaOcean’s customer base, which will be deeply involved in product strategy and planning along the way.
Will system pricing change now that DDS and MediaBank have merged?
No. Both DDS and MediaBank held long term contracts with current customers, which remain valid and obligatory. There is no corporate interest in or contractual ability to alter system prices.
Which companies operate in MediaOcean’s space?
The advertising technology space is strong and growing extremely rapidly. Both Google (GOOG) and SAP (SAP) have made clear efforts in this arena via acquisition and development, while Microsoft (MSFT) has also been very active, most recently partnering with Harris Corporation (HRS) to target advertising agency systems business. Other examples of agency systems providers abound—including Strata, owned by Comcast (CMCSA), as well as vertical providers such as CoreMedia Systems, Inc., which specializes in direct response advertising software. Globally, many countries are serviced by a single, strong competitive technology provider, such as BCC AdSystems in Australia. MediaOcean intends to introduce choice to these regional marketplaces.
Who leads MediaOcean?
Michael Donovan, founder of DDS and current chairman and CEO, will be leading the company as executive chairman. He’s joined by Bill Wise, currently the CEO of MediaBank, as CEO.
What is the size of the combined entities, and where does MediaOcean now operate?
The workforce includes approximately 800 employees across three continents. With its global headquarters in New York City, MediaOcean operates United States regional offices in Atlanta; Chicago; Hasbrouck Heights, NJ; Los Angeles; and Louisville, KY. The company operates internationally in Dublin; Düsseldorf; Edinburgh; London; Paris; Pune, India; and Toronto. Aggressive further international expansion is planned to support the global interests of clients and prospects.
Who are MediaOcean’s customers?
MediaOcean’s client roster represents advertising agencies and agency holding companies, including brands contained within Aegis Group, Havas, Interpublic Group of Companies, MDC Holdings, Omnicom Group, Publicis Groupe S.A., and WPP plc; as well as numerous independent advertising agencies around the globe. MediaOcean will also power sales operations for some of the leading broadcast, print, and out-of-home advertising sales organizations; and MediaOcean serves marketers and advertisers directly through its Demand Side Platform. MediaOcean’s clients collectively run $150 billion in media spend through its systems worldwide.
Can you outline the timetable to fully merged operations, following government approval?
As in any corporate merger, time is a factor in a full transition of organization and products. The goal is to have this accomplished in full as soon as possible, with the merger progressing along coordinated, strategic steps—not in a single action. In the interim, operations and client relationships will remain as they were previously.
How will this affect customer service and support as well as product training?
Service teams will remain intact, as well as training and support. There are no plans to vary from the current assignments. MediaOcean aims to provide the very best in all areas. The combination of talent and resources makes possible new levels of informed, specialized expertise.
How will MediaOcean standardize digital advertising?
MediaOcean strives not to define or control the industry’s standards, but to provide tools and platforms to enable the industry to do so. With the openness of the OS, applications and functionality can be drawn from virtually any source, allowing the laws of demand to define what the standard(s) should be. Certainly, MediaOcean plans to contribute by building functionality and applications, but has the view that no one single entity should create and build them all.
How will this merger impact operations in international markets?
Markets outside North America are unaffected in terms of current operations. MediaOcean plans vigorous growth into new international markets and intends to offer a global solution via the OS.
