Strategic Media grabbed by Carat

By DITA DE BONI

In another loss of local ownership in advertising, media services company Strategic Media has been purchased by London-listed marketing consortium Aegis Group for an undisclosed sum.

The group's international media arm - Carat - has bought Strategic after having a non-financial affiliation with the agency for several years.

Carat's move into Australia two years ago was a precursor to the New Zealand purchase.

The companies have shared clients in Australasia, including Levi's, Freedom Furniture and Quantum prestige.

Strategic, which has also managed events such as the inaugural Rugby World Cup and the 1990 Commonwealth Games, was established in 1986 by Robert Roydhouse and Bob Gill.

Now Carat New Zealand, the company has offices in Christchurch, Wellington and Auckland, employs 16 staff, and generates sales of around $25 million.

Internationally, Carat has billings of about $20 billion and adds the New Zealand company to a stable of 37 countries in which it operates.

Worldwide clients of the network include adidas, Kellogg, Walt Disney and BMW.

Strategic founder Robert Roydhouse says resources in New Zealand are such that to be truly effective in the media planning and placement environment "[you] need international intellectual capital - and with an annual research budget of over $US50 million, Carat can deliver [that]."

Mr Roydhouse says there is a place for locally owned media independents, although "we don't believe they can continue to provide smart enough solutions for media-cultured clients."