MEDIA-I: Engage Asia closes regional offices

<p>Engage has pulled the plug on its media business in Asia and </p><p>Australia, while the future of its software marketing business looks </p><p>"very questionable", according to a senior executive at the company. </p><p><BR><BR> </p><p>The closure follows a weakened demand for ad technology and media </p><p>services, which has resulted in the demise of many dotcoms, and will </p><p>result in the lay off of at least 20 of the 30 staff employed by Engage </p><p>regionally. </p><p><BR><BR> </p><p>The company has closed offices in Singapore and Australia, while the </p><p>future of its Hong Kong software operation remains uncertain. </p><p><BR><BR> </p><p>Engage Asia was set up last year by Colin McIntosh, president of Engage </p><p>Asia/Australia, after the company acquired Space Asia Media in Hong </p><p>Kong. </p><p><BR><BR> </p><p>However, signs that the company was facing difficulties appeared when </p><p>its holding company CMGI decided not to renew funding. </p><p><BR><BR> </p><p>McIntosh explained: "We are in a similar situation to other companies </p><p>that have parents in the US, because the businesses practices that work </p><p>there don't work here. The main reason for the closure is the global </p><p>environment. </p><p><BR><BR> </p><p>But as Space, we offered a broader range of services. As Engage we have </p><p>been confined to the model from the US and that did not necessarily meet </p><p>the needs of the market here. It was restrictive on our business </p><p>operations and that didn't help." </p><p><BR><BR> </p><p>He added the company had worked to conclude all client projects in time </p><p>for the September 28 closure. Engage's client list included 200 </p><p>advertisers and 300 publishers. </p><p><BR><BR> </p><p>Engage had sacked an estimated 45 employees in Asia since January, and </p><p>had closed its Malaysia, Thailand and Korea offices earlier this year, </p><p>in an effort to cut costs. </p><p><BR><BR> </p><p>In August, it cut staff numbers by 20 per cent worldwide, marking its </p><p>second round of lay offs after it sacked 550 staff internationally in </p><p>January. </p><p><BR><BR> </p><p>Other online ad-dependent companies have either restructured or closed </p><p>operations due to the dotcom downturn. 24/7 Asia recently decided to </p><p>rebrand and change its name in an effort to expand offerings to </p><p>advertisers and evade the online ad slump, while CMGI closed Adforce - a </p><p>competitor to Engage - in June. </p><p><BR><BR> </p>