Why private-equity firms are suddenly smitten with digital; Increased web spending, aQuantive deal up appeal of investing in interactive.(News)

Advertising Age, October, 2007 by Mcilroy, Megan

Byline: MEGAN MCILROY

Don't expect the credit crunch to deter private-equity firms from making a play for digital-advertising agencies.

Though once they were hesitant to invest in people-oriented businesses such as advertising agencies, private-equity investors now are competing alongside advertising-holding companies for a piece of the digital action. As many as 40 firms are said to be vetting the market.

Driving the change is the shift in ad dollars from traditional media to digital media: Online ad spending will total $21.4 billion this year, according to eMarketer estimates.

"People are starting to understand that the dollars are shifting for real and there is sustainable online growth in the internet. It's no longer a bubble,''...

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