Connect with us

AFFILIATE MARKETING

Madison Alley: The M&A outlook this year is better than you’d think

Published

on

Madison Alley: The M&A outlook this year is better than you’d think

Lingering economic worries that haven’t quite disappeared — due to rising interest rates and continued inflation — aren’t having a huge effect on the appetite for mergers and acquisitions in the digital marketing space, according to new research being released tomorrow by Madison Alley.

The research also found less negativity in the forecasted ad spending in the balance of 2023 than one would expect in challenging economic times.

Digiday was given an early look at the research being issued by Madison Alley, an M&A advisory firm, which spoke to a blend of 18 private equity investors, 25 independent agency CEOs and operators, and 23 holding company- or PE-backed agencies to generate its findings. Of the agency folk surveyed, 57% were full-service agency execs, 19% apiece were in digital transformation or performance marking, and 5% were in creative or brand design.

In top-line findings of M&A activity, half of the survey respondents expect to be more acquisitive in 2023 than they were last year, while 65% said they expect deal flow will be at least as strong if not more so this year over last.

Part of the reason for that possible uptick in acquisitions is that buyers expect valuations to decrease this year — likely the result of the economic headwinds that continue to blow. Just over one-third of buyer respondents (36%) expect marketing services valuations to decrease, while 35% of sellers believe valuations will stay the same.

“The market is tougher” at the moment, said Andreas Roell, managing director at Madison Alley, who oversaw the research. “As a result of that, one could probably find better deals now than they were able to do before, because we came off pretty high peaks [in 2022]. There’s a little bit of a value driven approach, at least on the intent side. But this is the interesting part: the valuations have not come down dramatically. So, it continues to remain in my mind a seller’s market, if you have a quality asset.”

Advertisement

Michael Seidler, Madison Alley’s founder and CEO, added that a significant amount of the M&A activity is concentrated in that middle area of the agency world — independents that are looking to grow by buying smaller shops around them. But holding companies are also looking to acquire smaller specialists (for example, WPP has been buying small groups from sonic branding specialist Amp to social influencer marketing agency Obviously) to boost newer tech options.

“There’s been a number of parties that have reached out to us and that we’re also engaged on a number of these strategic buy-side fronts, where they really do need, digital creative capabilities, or performance marketing capabilities, or other aspects,” said Seidler. “We believe these are good conditions for them to be acquiring. It’s a little bit less competitive. It’s not to say that there aren’t as many buyers, but the buyers are a bit more judicious or selective on what they’re acquiring.”

Sanja Partalo, co-founder and managing partner of S4S Ventures, a VC firm that invests in the space, said she is also “on the optimistic team” of expecting a pickup in M&A activity this year. Partalo noted that investors now can feel the economic floor beneath them and have the confidence to make smart acquisitions. She expects to see acquisitions of specialists in influencer marketing, and creator marketing, as well as in performance media and affiliate marketing spaces.

“Some of the holding companies don’t have existing influencer operations or creator-driven expertise, so they’re now going out and buying it,” said Partalo, who added that affiliate marketing knowledge is also scant among major agencies, but is vital to successfully implementing influencer and social campaigns. 

The survey also addressed the health of the ad marketplace heading into second half 2023. The good news is that 50% of respondents said marketing budgets in 2023 will stay the same, but almost one-third (31%) expect them to decrease, leaving just under one in five (19%) expecting marketing budgets to rise. When asked about their largest clients, the percent of respondents expecting the same spend rose to 56%, while those expecting an increase grew to 24%.

“Starting at the end of Q1, budgets of advertisers were starting to open up again,” said Roell. “And forecasts around Q3 and Q4 of this year, appear to be very strong from an advertiser side.” Roell added that alongside that shift, there’s a shift back toward branding-related upper-funnel spending, another indicator the second half of 2023 could improve for the ad marketplace. 

Advertisement

“When things get a little bit tougher, there is a stronger tendency towards moving down the funnel into performance, marketing,” he said. “Now we’re starting to hear budgets go back up a bit more into awareness and branding again, towards the later part of this year.”

Source link

Keep an eye on what we are doing
Be the first to get latest updates and exclusive content straight to your email inbox.
We promise not to spam you. You can unsubscribe at any time.
Invalid email address

AFFILIATE MARKETING

Samsung: 6-Day Workweek For Execs, Company in Emergency Mode

Published

on

Samsung: 6-Day Workweek For Execs, Company in Emergency Mode

Four-day workweeks might have all the buzz, but one major tech company is going in the opposite direction.

Samsung is implementing a six-day workweek for all executives after some of the firm’s core businesses delivered lower-than-expected financial results last year.

A Samsung Group executive told a Korean news outlet that “considering that performance of our major units, including Samsung Electronics Co., fell short of expectations in 2023, we are introducing the six-day work week for executives to inject a sense of crisis and make all-out efforts to overcome this crisis.”

Lower performance combined with other economic uncertainties like high borrowing costs have pushed the South Korean company to enter “emergency mode,” per The Korea Economic Daily.

Related: Apple Is No Longer the Top Phonemaker in the World as AI Pressure and Competition Intensifies

Advertisement

Executives at all Samsung Group divisions will be affected, including those in sales and manufacturing, according to the report.

Samsung had its worst financial year in over a decade in 2023, with the Wall Street Journal reporting that net profit fell 73% in Q4. It also lost its top spot on the global smartphone market to Apple in the same quarter, though it reclaimed it this year.

Though employees below the executive level aren’t yet mandated to clock in on weekends, some might follow the unwritten example of their bosses. After all, The Korea Economic Daily reports that executives across some Samsung divisions have been voluntarily working six days a week since January, before the company decided to implement the six-day workweek policy.

Entrepreneur has reached out to Samsung’s U.S. newsroom to ask if this news includes executives situated globally, including in the U.S., or if it only affects employees in Korea. Samsung did not immediately respond.

Research on the relationship between hours worked and output shows that working more does not necessarily increase productivity.

A Stanford project, for example, found that overwork leads to decreased total output. Average productivity decreases due to stress, sleep deprivation, and other factors “to the extent that the additional hours [worked] provide no benefit (and, in fact, are detrimental),” the study said.

Advertisement

Related: Samsung’s Newest Galaxy Gadget Aims ‘To See How Productive You Can Be’

Longer hours can also mean long-term health effects. The World Health Organization found that working more than 55 hours a week decreases life expectancy and increases the risk of stroke by 35%.

The same 55-hour workweek leads to a 17% higher risk of heart disease, per the same study.

Source link

Keep an eye on what we are doing
Be the first to get latest updates and exclusive content straight to your email inbox.
We promise not to spam you. You can unsubscribe at any time.
Invalid email address
Continue Reading

AFFILIATE MARKETING

John Deere Hiring CTO ‘Chief Tractor Officer,’ TikTok Creator

Published

on

John Deere Hiring CTO 'Chief Tractor Officer,' TikTok Creator

This article originally appeared on Business Insider.

Agriculture equipment company John Deere is on the hunt for a different kind of CTO.

The brand on Tuesday announced a two-week search to find a “Chief Tractor Officer” who would create social media content to reach younger consumers.

One winning applicant will receive up to $192,300 to traverse the country over the next several months showcasing the way John Deere products are used by workers, from Yellowstone National Park to Chicago’s Wrigley Field and beyond.

“No matter what you do — whether it’s your coffee, getting dressed in the morning, driving to work, the building you go into — it’s all been touched by a construction worker, a farmer, or a lawn care maintenance group,” Jen Hartmann, John Deere’s global director of strategic public relations, told AdAge.

Advertisement

To kick off the search, John Deere tapped NFL quarterback Brock Purdy (who will presumably be a bit busy this Fall to take the job himself) to star in a clip in which he attempts to set out on a road trip in an industrial tractor.

Suited up in the obligatory vest, work boots, and John Deere hat, Purdy’s progress is interrupted by teammate Colton McKivitz hopping into the cab while a string of messages floods in from other athletes and influencers expressing interest in the job.

The clip also represents the first time that the 187-year-old company has used celebrities to promote itself, Hartmann told AdAge.

According to the contest rules, entrants have until April 29 at midnight to submit a single 60-second video making their pitch for why they should be the face and voice of the company.

In addition, entrants must live in the 48 contiguous states or DC — sorry Hawaii and Alaska residents. Interestingly, any AI-generated submissions are prohibited, too.

Videos will be judged against four categories — originally, creativity, quality, and brand knowledge — after which five finalists will be chosen and notified after May 17.

Advertisement

Source link

Keep an eye on what we are doing
Be the first to get latest updates and exclusive content straight to your email inbox.
We promise not to spam you. You can unsubscribe at any time.
Invalid email address
Continue Reading

AFFILIATE MARKETING

How to Capitalize On This Thriving Talent Pool to Drive Your Company’s Growth

Published

on

How to Capitalize On This Thriving Talent Pool to Drive Your Company's Growth

Opinions expressed by Entrepreneur contributors are their own.

As business operations shift, executives and entrepreneurs are increasingly turning to an on-demand workforce that is simultaneously empowered by technology and drawn to purpose-driven projects.

Consider Upwork, whose 2020 Future of Workforce Pulse Report revealed that nearly 80% of hiring managers engaging freelancers feel confident about doing so. These hires provide coveted expertise — on a project-to-project basis — that entrepreneurs need to scale their operations without incurring long-term overhead costs.

This new market paradigm also promotes dynamism, with 79% of businesses agreeing that freelance talent enables greater innovativeness. Perhaps most telling, 84% of hiring managers utilizing it feel more assured about adapting to future disruption, compared to just 69% of those relying solely on full-time staff.

By capitalizing on freelance marketplaces, entrepreneurs can amplify employer branding, augment capabilities and future-proof organizations, even amid turbulence. As nearly 60% of hiring managers plan to increase engagement with freelancers over the next two years, the time is now for executives to realize their inherent potential.

Advertisement

Related: Navigating the Great Reshuffle: Why Your Employer Brand is Key in Recruiting Talent

The job market continues to shift

After a season of massive hiring, we’re back to seeing layoffs and downsizing. Companies are feeling the bloat—from unused office spaces with rising rent to oversized employee structures — and are shifting focus to hiring only the most essential positions. This leaves a critical talent gap needed for complex projects and specialized tasks. Highly skilled and specialized independents can fill this void.

A few key benefits to engaging them:

Access to niche experts: Platforms like Toptal and Guru provide access to elite professionals from leading Fortune 500 companies and innovative startups. Whether the need is for a machine learning specialist, growth strategist or financial modeler, entrepreneurs can now curate on-demand teams that boast specialized skillsets, enabling them to focus investment on projects with the highest strategic value.

Enhanced agility: Leading corporations increasingly “rent” skills by tapping freelance experts for initiatives involving new technologies or while entering unfamiliar markets. With niche contributors available to plug knowledge gaps, owners can explore ideas that once seemed unrealistic due to internal constraints—unlocking inventiveness and first-mover advantage.

• Stronger employment brand: Blending full-time employees with project-based freelancers signals a commitment to modernization and work-life balance. Offering both engaging work and flexibility will help draw exceptional candidates and help you compete with corporate giants for top-tier talent.

Advertisement

Related: Can Retirees Thrive in the Gig Economy? Navigating a Changed Workforce

Tips for capitalizing on gig talent

Having explored the forces reshaping work, executives may wonder how to effectively leverage freelance platforms. After all, how can you know you’re getting your money’s worth if a hire isn’t physically present full-time?

• Define projects clearly: Contract hires thrive when expectations and deadlines are established upfront. So, clearly, detail needs around deliverables, success metrics, required skills and projected time investments. Staying ahead when it comes to communication and expectations will help avoid headaches, including delays.

• Build loyalty with talent: The best independent professionals have options regarding the projects they accept. Study their profiles to discern passions and incentives. Offer interesting work, flexibility and strong communication to motivate interest and improve results.

• Manage collaboration: Provide steady context, feedback and guidance at each project stage, but also foster autonomy, even while directing efforts toward strategic goals. A dynamic balance of these qualities drives optimal outcomes.

• Continue expanding your talent pool: Add proven freelancers to an internal database for repeat engagements, and notify talent about new initiatives for which their expertise would provide an edge. Uncovering additional ways, freelancers can enhance the business deepens the relationship.

Advertisement

Related: Fill Your Talent Gap by Sourcing Candidates From the Veteran Community

Top platforms for connecting with talent

Now comes the hard part: finding contractors who bring fractional expertise sets. There are a growing number of platforms, of course, but I’ve found that the following stand out as leaders:

Fiverr: Ideal for execs seeking design, digital marketing, writing, video and admin support. Known for affordability and ease of posting jobs. It taps a global talent pool, too.

Upwork: A flexible platform that spans more than 150 skills. Used by everyone from small businesses to global enterprises. Strong at IT, development, design, finance and consulting.

Toptal: Focuses exclusively on the top 3% of talent. Best for expert software developers, designers, project managers and finance experts. All contributors are extensively vetted.

Contra: A growing independent platform that vets and connects both job candidates and hiring companies. Best of all, it doesn’t take a commission from projects.

Advertisement

Related: 3 Strategies to Optimize Your Hiring Process and Find the Best Employees

The numbers speak for themselves: businesses engaging freelance professionals report greater confidence and competitiveness, as well as the ability to withstand turbulence, yet legacy beliefs can still cause hesitancy among those keen to hire. Supported by such specialized collaborators, companies can explore new horizons unencumbered by a one-time narrow view of staffing models.

Source link

Keep an eye on what we are doing
Be the first to get latest updates and exclusive content straight to your email inbox.
We promise not to spam you. You can unsubscribe at any time.
Invalid email address
Continue Reading

Trending

Follow by Email
RSS