Publicis Acquires South Korean Digital Ad Firm

(MoneyWatch)  French ad holding company Publicis Groupe is pushing even further into online. The company announced today it will acquire leading South Korean digital ad agency Portfolio. The firm will become a part of Publicis' online division, Publicis Modem, and rebranded as Publicis Modem Korea. Exactly how much Publicis shelled out for the firm was not disclosed. From the press release:

Digital advertising in Korea is a thriving market. According to ZenithOptimedia, internet ad spend grew nearly 40% in 2007 to take a 13.7% share of total adspend of nearly USD 10 billion. By the end of 2007, there were 14.8 million broadband subscribers - representing 78% of Korean households.

Add that data to a report pegging South Korean online ad spend at $1 billion last year, and you can see why Publicis is eager to snatch up a digital ad agency there. This is part of Publicis' larger digital strategy, which has included a deal with Yahoo and moving its online mobile marketing agency Phonevalley into the US.

It also shows the continuing trend of acquisition by the Big Four as the market tightens. Better to surround yourself with proven companies in local markets than attempt to break into foreign markets.