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UK digital marketing firm The Croud Group is working with the investment bank GP Bullhound to search for a new private-equity investor, according to multiple sources familiar with the matter. Croud is already PE-backed, having taken on a 30 million pound, or around $28 million, minority investment from LDC in 2019. This story is available exclusively to Business Insider subscribers. But unlike some of its closest competitors, Croud hasn't been particularly acquisitive since it took on LDC's investment in 2019. "The valuation expectations would have been very high for Croud," Rosie McKeith, SI Partners director, told Business Insider.
Persons: Bullhound, Croud, Luke Smith, Smith, Ben Knight, Greg Paull, it's, Croud hasn't, Rosie McKeith, McKeith, OakNorth Organizations: Business, OakNorth Partners, HSBC, Campaign, Harvest, Croud, Ford, Guinness, Impakt Advisors, Partners Locations: LDC, Ford Europe, Dubai, OakNorth
Ad agencies are struggling to find new business. Major marketers like Microsoft have already slashed ad spend, and agency sources expect more cuts in 2023. Brands aren't offering their ad businesses to new agencies due to economic uncertainty. This is putting a huge strain on agencies already reeling as existing clients spend less. This year, staff cuts have already hit ad agencies like independent San Francisco-based advertising shop Venables, Bell & Partners and IPG agencies Huge and R/GA.
Eastward Partners characterized the firms as largely growth-stage companies, or companies in the digital space that have taken external private equity or venture capital funding. The compensation data examines median total compensation, which includes base salary and bonus. Within those companies, CMOs’ median total compensation in August 2022 was 9.64% higher than a year earlier. That was a sharper rise than seen for other roles, such as CEOs, whose compensation grew 7.45%, or CFOs, whose compensation rose 1.96%, according to Eastward Partners’ data. And that’s actually impacting business performance, because they can’t find the savvy, smart digital marketing people to fill those gaps,” Mr. Neale-May said.
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