Between 2004 and 2006, Lake Capital invested
in and merged four leading direct response
television (DRTV) advertising agencies to form the
industry's largest independent firm. The new marketing
services company combines the professional teams of
creative agency Respond2, media buying agency Cmedia
and media buying agency ATC Agency Services. Duplication
and production house Production West and entertainment
marketing company R2 Entertainment, already affiliated
with Respond2 and Cmedia, were also part of the merger.
In 2006, Lake Capital and Respond2's management acquired Marketing & Media Services, Inc. (MMSI) to enhance the company's media planning and buying service offerings. MMSI specializes in "per inquiry" DRTV, which Respond2's clients had been asking for but the company had to outsource prior to acquiring MMSI. Per inquiry DRTV is the television equivalent of "cost per acquisition" advertising on the internet, where clients pay only for leads generated by their television spots. Cross-sell began to take place immediately between Respond2's original client base and MMSI's, adding significant growth and profitability to the company.