Innovation Ads – Innovating No More
It is being reported that Innovation Ads has closed and ceased operations in the online lead generation space. Emails from now former employees went out to their former clients, saying “I’m not sure if word has gotten to you yet, but yesterday, Innovation Ads closed, and terminated all of it’s employees.” The emails unfortunately also delivered some bad news, namely that companies are now saddled with potential losses because of presumably now unpayable invoices.
Innovation Ads has long and colorful history in the space. I was unaware that Capital Source Finance of Chicago was the majority owner. Founded in 2002, the company was acquired by Seaport Capital in 2006. The press releases stated, “This was a strategic move carried out by Seaport Capital in order to compliment its earlier acquisition of Direct Response Media, Inc. (DRMI), a full-service agency specializing in direct response television. Seaport Capital has created Think Media, a holding company that will preserve the autonomy of Innovation Ads and DRMI, while creating the opportunity for collaborative direct marketing endeavors between the two entities. This heavy-weight amalgamation of unique talent promises to be the premier direct marketing solution for advertisers.” Whatever it was, kudos should go the investment bank. The majority owner of Innovation Ads now, according to those closer to the company, is not Seaport but Capital Source Finance of Chicago.
Prior to the acquisition, Innovation Ads did not have a reputation for high quality… this according to feedback from the schools. More recently, though, it seems as though the company had turned the quality corner and for some schools was starting to be seen as a preferred vendor. Those we talked to (on the buy and sell side) liked dealing with them.
A big question looms around the future of UMUC (University of Marlyand University College) from whom Innovation ads was the Agency of Record. I suspect there are some pretty excited other firms who would like to take over the relationship with such a marquee brand.
Best of luck to the team there. We wish them well.
