Active Marketing Group has acquired health-club marketing shop Promote It International to round out its marketing services targeting physically active consumers.
Promote It handles promotions and sampling in 5,500 health clubs for packaged goods brands. That grassroots presence complements Active’s data-driven services in event and mobile marketing, sponsorship activation, youth and adult sports marketing, and municipal marketing.
Active’s parent, The Active Network, handles online registration for sports events (such as golf tournaments and triathlons), team sports (including Little League baseball and local soccer associations) and community ed classes. Active can access those databases for marketing to physically active consumers.
“We’ve been looking at the fast-growing health club environment for some time,” said Active Managing Director Eric Magnuson. “Promote It is a strategic addition for us. Merging our strengths [lets] brands reach right down into an environment where consumers are passionate about their lifestyle decisions.”
The deal closed March 5; terms were not disclosed. Promote It will keep its Lakewood, CO headquarters; CEO Barbie Gummin becomes VP-business development for San Diego-based Active, which absorbs Promote It’s staff. Promote It will keep its name for three to six months, then adopt a new moniker now in development. The shops have just begun jointly pitching clients.
“Brand managers are looking for integrated marketing programs. If it’s not integrated, it’s not good enough,” Gummin said. “We’re hoping to do a single proposal with better cost and personnel efficiencies for marketers.”
The merged shop has combined net revenues of more than $11 million, based on PROMO 100 data. Active ranked No. 43 in the 2005 PROMO 100 with 2004 net revenues of $8.08 million, up 258% over 2002 (mostly via acquisition). Promote It ranked No. 60 with 2004 net revenues of $3.2 million, up 184% from 2002.
This is Active’s third acquisition in 11 months: The shop bought Public Enterprise Group (municipal marketing) in April 2005, and Boston-based Vision Sports and Entertainment Partner (youth marketing) in June 2005. Vision adopted the Active name; Huntington Beach, CA-based Public has become Active Public Enterprise Group. Active also has an office in New York; Promote It becomes Active’s fifth office.
Active’s clients include Unilever, PepsiCo, Inc., Timex, Kraft Foods, Inc. and Choice Hotels International. Promote It clients include Procter & Gamble, Kellogg Co., Johnson & Johnson, L’Oréal USA and The Quaker Oats Co.
Magnuson, who joined Active this month, had been senior VP-managing director for Millsport and earlier was executive director of Pac-10 Properties, a joint venture he helped create between Fox Sports and the Pac-10 collegiate conference.
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