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Online Advertising Articles
(May 2001)

Agency.com Moves into Australia

May 29, 2001 – Agency.com, Ltd., (Nasdaq: ACOM), a leading e-business builder in global markets, today announced a joint venture with Clemenger Communications, Australia's largest private communications group to form Agency Interactive. Agency Interactive will focus on the emerging e-business market in Australia.

The announcement is part of Agency.com's global strategy to build market expertise with strong local management across the Agency.com network worldwide. In 1998 and 1999 Agency.com entered the European market with offices in Amsterdam, Copenhagen, London and Paris. In 2000 Agency.com continued its expansion efforts into Korea and Latin America. The company sees these markets as potential long-term growth opportunities for interactive services across Web, wireless and interactive television platforms. Agency.com currently has a client base of global 2000 companies including 3M, British Airways, Compaq, Heineken, Reuters and Visa.

The Clemenger Communications Network is Australia's largest and most broadly based marketing communications company, with divisions in advertising, direct marketing, public relations, database management, sports sponsorship, media buying, telemarketing, corporate design, sales promotion, contract publishing and more. Partnering with Agency.com to form Agency Interactive, Clemenger will draw from Agency.com's expertise to offer their clients strategy, branding and technology services across interactive platforms. The company will be headquarted in Sydney, with additional offices operating from Melbourne.

"Agency Interactive brings us into the next phase of global expansion. We are very pleased to be working with Clemenger Communications to better service our existing global 2000 clients and expand into a new market," Chan Suh, Chairman and CEO of Agency.com, said. "Australia has a wealth of local talent and a strong demand for interactive services."

"This move is a logical extension of Agency.com's success around the world," said Robert Morgan, CEO of Clemenger Communications. "Today's announcement means Australia’s business leaders now have access to the best interactive strategists in the world with the experience and expertise of more than 1000 Agency.com staff in 8 countries around the world."

Interestingly, the company's leap into the Australasian market comes during a period of consolidation for the sector, with DoubleClick tentatively shuttering its DoubleClick Australia division, before acquiring Sabela Media from competitor 24/7 Media to serve the Australasian technology market. In addition, Engage Australia has handed its media division to Telstra-owned Pacific Access, leaving only a few leading players to dominate and fight their way towards profitability in a generally tough climate for online marketing plays.


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