Neustar Acquires MarketShare to Grow Market Share


Neustar MarketShare acquisition

Identity-based customer solutions are trending as marketers strive for better tools to address the shifting tides and times of real-time spending on multi-sales channels.

To that end, Neustar, Inc., real-time provider of cloud-based information services for marketing and IT security professionals, is acquiring MarketShare Partners, a marketing analytics company, in a deal valued at $450 million.

It’s a formidable pairing that aims to help marketers with precision marketing and predictive analytics so they can plan and adjust spending in real-time based on data and results from campaigns. MarketShare works with clients including MasterCard, Ford, Turner Broadcasting System, Intel, USAA, CarMax and Twitter.

“This transaction advances our growth strategy in the rapidly evolving $19 billion marketing data and analytics market and strengthens our position as a leading information services company,” stated Lisa Hook, President and CEO of Neustar.

“Combining Neustar’s leadership in authoritative identity, audience targeting and segmentation, and real-time media measurement with MarketShare’s market-leading technology and predictive analytics will enable CMOs to look across their entire business – from planning to execution, online and offline – to get a comprehensive and accurate reading of what is driving their sales. This will enable them to make more precise allocation decisions to achieve better returns on their investments.”

By joining together with MarketShare, Neustar will be uniquely positioned to help brands meet this challenge. “The addition of MarketShare will enable us to offer a complete, data-driven solution to CMOs as they plan, optimize, and allocate their online and offline marketing budgets and resources. In the increasingly complex world in which major brands operate, this really matters,” Hook commented.

“A full century ago, the Philadelphia department store magnet John Wanamaker famously commented, ‘Half the money I spend on advertising is wasted; the trouble is I don’t know which half,'” she elaborated in a blog post. “Determining what marketing initiatives are most effective so they can channel resources accordingly has long been marketers’ most vexing challenge.”

MarketShare’s analytics and attribution provide CMOs and other brand and marketing executives with sales, marketing, macroeconomic and customer proprietary data, and will help Neustar quantify the sales impact for major brands across all sales channels including stores, online, call centers, and sales teams, as well as digital, television, radio, print, mobile, out-of-home, and in-store.

“MarketShare’s mission is to empower marketers to make data-driven, intelligent decisions on how to allocate their marketing resources across customers, products, markets, and media,” stated Wes Nichols, Co-Founder and Co-CEO.

Paul Lalljie, Neustar’s Chief Financial Officer, added, “MarketShare is a fast-growing leader in an important segment of the marketing services industry. With this acquisition, we are gaining scale and unique value-added capabilities in a highly attractive market, which we believe will give us an even stronger foundation to enhance growth and create shareholder value.”

The combination “will help CMOs generate better returns on their investments,” Hook noted. “All of this will mean that our customers’ end users—consumers—will benefit from seeing marketing campaigns more relevant to them, and as our service to marketers expands, only the marketing campaigns that are relevant to them.”

“Acquiring MarketShare is a logical move for Neustar, given the journey we have been on,” she added. “We provide solutions based on our expertise in authoritative identity, which stems from our heritage in managing the world’s most sophisticated real-time information exchange—skills we acquired by enabling every voice call and text message to be delivered successfully have helped us provide our customers with value-added insights across a variety of services. Along the way, we have become the authentication experts—enabling our customers both to protect their brands and promote them.”

“By bringing together the market-leading skills developed by MarketShare with the capabilities Neustar has honed over time, we’re taking the next big step forward. We’re adding a new dimension to what we can offer the world’s top brands, enhancing our strengths within marketing services, and rising to greater leadership within the larger category of information services.”

Since 2010, Neustar has grown its information services revenue from approximately $184 million in 2010 to $489 million in 2014, while revenue from marketing services increased from less than $3 million to approximately $147 million. For more information, visit its website and blog.