Horizon Media Acquires Digital Experience Agency in Push to Go Full-Service

Horizon Media, the largest independent media agency in the U.S., is acquiring a majority stake in digital experience agency First Tube. The move will help Horizon deliver on hybrid digital activations, or those that leverage a combination of live video on social media, experiential in-person events, Web3 activations and more. Horizon has long been characterized as an independent agency, and in most ways that categorization is still accurate. Its holding company competitors are publicly-traded companies beholden to shareholder interests. Horizon, by contrast, is still privately held by its founder and CEO Bill Koenigsberg and operates in the U.S. instead of globally. But now, with marketers looking for ways to enter the Web3 space if they haven't already, Horizon is acting more like a holding company by expanding its core offering through acquisitions to provide clients services beyond media. In recent years it's expanded its offering in other areas, from influencer-led content creation to ecommerce, multicultural marketing expertise and, most recently, a Web3 center of excellence. “Coming on the heels of launching our metaverse- and Web3-focused unit Chapter & Verse earlier this month, this move significantly strengthens Horizon’s position as we guide clients into Web3 and the metaverse, while giving First Tube a foothold in the metaverse itself," said Donnie Williams, evp and chief digital officer at Horizon Media, in a statement. Andrew Beranbom, co-founder and CEO, told Adweek he will continue to lead First Tube and that the agency will retain it's name for now, despite the acquisition. It mirrors the way that holding company acquisitions worked traditionally, with the acquired agency retaining its name and separate leadership. The long game Established in 2017, First Tube is a relatively young agency that built expertise in what it calls "experiential transformation," or the combination of both performance media and event marketing, meaning it facilitates media buying during live events for its clients. The agency serves global brands in the CPG, DTC, financial services, media, retail and technology spaces. "Live is a very powerful tool. There's a reason why every platform prioritizes it as a tool for marketers, right? So if you look at Facebook, TikTok, Twitch, whatever... they're prioritizing live, in format," said Beranbom. In a statement, he described the acquisition as a "win-win" for both sides. Horizon Media's market leading presence will amplify First Tube's prominence, while First Tube will bring Horizon a specialty focus and expand its offering in an increasingly important space. The agencies announced the acquisition news on Wednesday to their clients and received positive feedback. Williams is hopeful that clients perceive the acquisition as a thoughtful way to add services to Horizon's offering that will ultimately make the agency a better partner. Amidst the challenges of the last three years, marketers turned their attention to innovation. As an agency, Horizon wants to reach audiences and consumers that are now more challenging to connect with in the current hybrid environment. The First Tube acquisition comes at a time when inflation scares have led to industry layoffs, creating a whiplash effect for companies that just a few months ago couldn't hire quickly enough. It points to Web3 and hybrid experiences as investments that leaders believe will pay off over time as Web3 becomes increasingly mainstream. “Some companies have chosen to reactively cut back in this time, but Horizon is focused on the long game,” said Koenigsberg in a statement. 4 Ways Brands Are Tapping Into the Booming Concert and Festival Landscape