Accenture Interactive to boost revenue more than 20% this year

3 months ago

Accenture Interactive has forecast that it will increase revenue more than 20% this year.

The digital marketing services division of Accenture claims growth is mostly organic, although the company has acquired several digital marketing agencies in the past year to expand.

Accenture Interactive is on course to surpass $10 billion in revenue this year after reaching $8.5 billion by August 2018, according to Campaign.

Previous agency acquisitions such as Fjord, Karmarama, The Monkeys and SinnerSchrader have increased sales organically, Rowland said.

Accenture Interactive estimated it will spend $1.3 billion on acquisitions this year.

The company in April made the biggest acquisition in its 10-year history with the purchase of creative agency Droga5 for an estimated $475 million.

“It is fundamentally an organic-driven business where we have used the strategic acquisitions as really an igniter, if you will, of the organic growth,” David Rowland, interim CEO of parent company Accenture, said last week on a quarterly earnings call with analysts.

Smaller, independent agencies operating in a highly competitive market might view Accenture as a more desirable buyer.

David Droga, the founder of Droga5, last month summed up the changing dynamics of the agency business while speaking on stage at the Cannes Lions International Festival of Creativity, according to Campaign’s report.

In an appearance with Brian Whipple, global chief executive of Accenture Interactive, Droga said he sold his agency to the consulting firm rather than a traditional agency group because of its more holistic approach to the customer experience.

source: http://www.marketingdive.com

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