Archive for June, 2012

Brand.net acquired by Valassis

Today it was announced that Valassis Communications, Inc. (NYSE:VCI), a leading media and marketing services company, acquired Brand.net, a leading advertising network focused on global brands. Valassis has long been a leader in delivering direct mail, newspaper inserts and in-store advertising to consumers.

With the addition of Brand.net, Valassis will now be able to sell and execute integrated offline and online marketing campaigns. This is a capability that its CPG and retail customers have been thirsting for. And, now, Valassis is in a prime position to lead the market with integrated offline and online cross-channel marketing campaigns.

This transaction exemplifies two trends noted in our recent blog post The Golden Age of Advertising Technology. One such trend is the application of technology to upper funnel solutions, namely brand advertising. This is a critical capability if the digital sector is to grow share of here-to-fore elusive brand advertising spend. The other trend is the emergence of “cross channel” advertising. While most digital media practitioners think of cross channel as combining two or more digital channels such as search and display, display and Facebook, or display and video, etc., the opportunity is much larger than that. Traditional advertising still dwarfs digital advertising in terms of actual spend; however, digital marketing is now recognized as an effective channel critical to a company’s overall marketing strategy.

Congratulations to both Brand.net and Valassis!

LUMA Partners advised Brand.net in the transaction.

The Gaming LUMAscape

The much-anticipated Gaming LUMAscape is out. When we released the original set of LUMAscapes in 2011, they covered the major sectors in digital media – search, display, social, mobile, video and commerce – leaving one category to follow: gaming. Just a few years ago, gaming would have been considered a niche category within digital media (but then again, so would social). However, since then gaming has exploded. There are still the traditional “gamers” playing sophisticated console-based or massively multiplayer online (MMO) games. Now, gaming is a mainstream activity, with the masses adopting simpler games that leverage social interactions or the convenience and accessibility of mobile games (enabled by the growth in smartphone adoption).

And that is not all. Enterprises have recognized the value that games can provide when used in the right context and applied to their workforce or customer base. With “gamification” built into their digital frameworks, products and processes, enterprises have realized that the inherent nature of games – including competition, rewards and status – can motivate employees and customers to act in ways that drive positive outcomes for their businesses.

The time consumers spend online is largely spent: searching, sharing, viewing, buying – and playing. With the release of the Gaming LUMAscape, we now feel we have these activities properly represented. However, we note that our LUMAscapes are not perfect, but are a starting point of a continual work in progress. If you have any comments or suggestions, please email us at LUMAscapes@lumapartners.com. Thank you for your help.