UDG: A German top player in digital marketing

In 2011, EQT Expansion Capital II backed a merger of nine German digital communication and marketing agencies to form the new group United Digital Group, UDG. So far, the move has proved successful. For example, UDG has for three years in a row ranked as one of the top two agencies in the German digital advertising market.

Since the investment the group’s agencies have been integrated successfully. A one-brand strategy has been implemented, shared services established and an efficient group wide reporting and controlling structure has been implemented.

”UDG has undergone significant changes since the new group was formed. We have definitely made the sector sit up and take notice. Jointly, our agencies cross-sell services and address larger and more complex projects than before. And that’s how it should be. We’re not talking about a revolution, but we have basically reinvented UDG”, says CEO Jessica Peppel-Schulz.

The key market for UDG is advertising, in particular online advertising and marketing. UDG covers the majority of the value chain in digital marketing services, including online marketing strategy and services, creation and design, as well as technology. Besides services in the areas of Search Engine Marketing (SEM), Search Engine Optimization (SEO), eCRM, Social Media, Affiliated Marketing, eLearning and eBranding, the spectrum of services includes equipping clients with IT-systems or integration of these systems with those of the client (IT Services).

”Customers want a one-stop shop for all their needs. Each of our departments has been successful and distinguished for excellence in its areas of expertise. Big players demand excellence in every digital discipline, together with a comprehensive approach that a large agency can offer. It is exactly this combination that we provide”, continues Jessica Peppel-Schulz.

The EQT Expansion Capital II rationale for investing in UDG was the opportunity to participate in a strongly growing market and to create a market leader in the highly fragmented German digital marketing services space.

 The market development is expected to remain positive and advertisers are expected to continue shifting their marketing budgets from offline to online marketing channels, creating future opportunities for UDG.

And CEO Jessica Peppel-Schulz expects the digitalization to continue to drive change: companies of all shapes and size need comprehensive solutions for digital brand management.

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