Will WPP Buy SpotRunner?

Peter Kafka | September 7, 2007 5:35 AM

Sir_martin_sorrell_of_wpp_group_2 WPP CEO Martin Sorrell told Bloomberg this week that he's about to buy another Web asset soon, and the NY Post thinks it's Spot Runner. Or something -- maybe a Web analytics company, Holly Sanders hedges. But she seems pretty convinced that it's Spot Runner, which lets small businesses create their own tv ads and buy airtime. Last year WPP particpated in a $40 million round that valued Spot Runner at $300 million; earlier this year WPP purchased 24/7 Real Media. NY Post.

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Page Craft said:
The first international internet-based TV ad agency Cheap-TV-Spots.com probably has won more awards for its custom-made discount TV productions than spotrunner has long term clients for its pre-made templates. Unlike spotrunner, Cheap TV Spots does not add fees to the negotiated air time rate, and they don't insist on contracts for multiple months. Much less expensive with real quality and originality in as little as 24 hours. Spotrunner really cannot compete directly with that kind of service. I think that the emperor is not wearing any clothes.
Stewart Black said:
Spot Runner marks up the airtime almost 40%. The commercials they are selling are not creative. They are all stock footage purchased from Getty Images. If a customer is smart all they need to do is go to Getty, Thought Equity or any other stock footage company and purchase a ready made commercial and go directly to the cable operator in there local market.

Spot Runner is ripping business owners off. Find me a happy Spot Runner customer or Spot Runner employee?
Grand Egress said:
On good authority: SpotRunner will be lucky to have $4MM in revenues this year.

Plus they have a HUGE Achille's heel: they are buying media at retail prices and marking it up when the commission/markup on wholesale media buying has been knocked WAY down last few years (from 20% to 3%)

One never knows how dimb big companies like WPP can be, but SpotRunner is stillborn
Steven Blinn said:
Relying on the New York Post for business news is probably not a wise decision.

Steven Blinn
BlinnPR
http://www.blinnpr.com
Stone said:
What's their revenue? I bet it's no where close to justify a $300M price tag. I've heard that they're still sub-$20M in revenue from TV commercials.

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