MEDIAPASSAGE PLANS TO ACQUIRE MORE FIRMS

By: Joe Nicholson

Executive Predicts Consolidation In Ad Placement Biz


As announced Tuesday, Seattle-based Mediapassage plans to merge
its Web-based ad-placement services with those of San Francisco-
based OneMediaPlace. E&P has learned that the new company plans
to gobble up a few small competitors.

The new entity, OneMediaPassage, will acquire other companies
“after digesting this” merger, said Carlton W. Bryant, executive
vice president of Mediapassage. In an interview with E&P,
Bryant said possible targets include the 40 other Web-based ad
placement firms, some of which are tiny and not fully functional.
Bryant predicted the field of 40 “will shrink very rapidly.”

When the merger is consummated in late February, OneMediaPassage
will have 210 staffers and expects to conduct more than $1.2
billion in U.S. media transactions this year. “We become far-and-
away the industry leader,” declared Gilbert Scherer, chairman and
CEO of Mediapassage. He will be chairman and co-CEO of the new
entity.

Mediapassage, which changed its name last year from
mediapassage.com, is the biggest Web-based ad-placement service
for newspapers. It also does some magazine work, and this month
it launched a yellow-pages operation. The firm had an estimated
$400 million in billings for 108,000 newspaper insertions last
year.

On Jan. 8, the Newspaper Association of America (NAA) launched a
Web-based ad-placement service for newspapers. NAA’s Vienna, Va.-
based NICC expected its sales at the end of this year to reach an
annual figure approaching $600 million, double the business the
NAA has been doing with its pre-Web system.

Last August, Mediapassage merged with Chicago-based
broadcastspots.com, a Web-based ad-placement service that focused
primarily on the radio market and had some cable TV work.
OneMediaPlace’s emphasis has been on Internet and outdoor
business.

OneMediaPassage will be headquartered in Seattle with offices in
New York, Chicago, Los Angeles, and San Francisco. Jerry
Machovina, president and CEO of OneMediaPlace, will serve with
Scherer as co-CEO of the merged entity.



Joe Nicholson (jnicholson@editorandpublishe.com) is an associate
editor covering marketing and advertising for E&P.



Copyright 2001, Editor & Publisher.

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