Ad agency Adler, Chomsky & Warshavsky Advertising-Grey has submitted its draft prospectus for an IPO on the Tel Aviv Stock Exchange (TASE) to the Israel Securities Authority. The figures mentioned should especially interest people monitoring Israel’s advertising market, for they provide the first real picture about a large agency, its sources and amounts of profit, and risks, which hitherto have been kept hidden.
”Globes” earlier reported that Adler, Chomsky planned to hold its IPO at a company value of NIS 250 million. The agency has 14 subsidiaries, one of which is inactive, and functions as an umbrella enterprise that provides full advertising services: classic advertising, online, sectors, marketing research, strategy, media planning, and content marketing. The firm does not provide public relations.
Adler, Chomsky has more than 100 accounts, 15 of which are larger than $1 million. The agency’s largest account is Bezeq The Israeli Telecommunication Co. Ltd. (TASE: BEZQ), which provides 19% of the agency’s total revenue. 90% of the agency’s revenue comes from classic advertising on radio, TV, print media, billboards, etc. On the basis of studies in other countries, which were cited in the prospectus, Adler, Chomsky predicts that the proportion of television advertising will not fall much in the coming years.
Published by Globes [online], Israel business news - www.globes.co.il - on October 31, 2007
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