• by Joe Mandese  @mp_joemandese, January 10, 2007

Like most traditional media companies, magazine publisher Meredith Corp. has been struggling to understand how the migration to digital media is impacting the way agencies plan and buy advertising. Unlike most, it has gone out and acquired an interactive advertising agency. Meredith Wednesday announced it has acquired Los Angeles-based Genex, a top 50 interactive shop handling clients such as Honda, Toyota, Citigroup and KB Home. In a related move, Meredith said it also acquired New Media Strategies, a firm specializing in so-called Web 2.0, or online social media marketing strategies.

While a number of big media companies, especially publishers like Time Warner, Conde Nast and Hachette often provide advertising and marketing services as part of their "value added" marketing support to advertisers and agencies, it is unusual for them to own agencies.

The move also comes as ad agencies have been acquiring or taking strategic stakes in media companies, especially new media outfits that are transforming the way consumers use media. Interpublic recently took a major stake in Facebook.com and Publicis' Denuo unit has been evaluating venture capital investments in a variety of new media players.

"Adding Genex and New Media Strategies to our group further deepens our ability to help our clients build their brands with a wide variety of creative and effective marketing solutions," Meredith Publishing Group President Jack Griffin stated, adding. "These capabilities now include interactive strategies, innovative web site development, word-of-mouth and Web 2.0 marketing programs, online media, and experiential events."

The deals are actually the second time in nine months that Meredith has made a strategic investment in a marketing services agency. In April 2006, Meredith acquired O'Grady Myers, a Los Angeles-based interactive ad shops specializing in the food, packaged goods and healthcare categories.

Griffin said the acquisitions of Genex, O'Grady Myers, and New Media Strategies are all designed to bolster the capabilities of Meredith Integrated Marketing, an in-house unit providing advertising and marketing services to advertisers and agencies doing business with Meredith. The acquisitions add 200 people to the unit's marketing services staff.