9 October 2012
WPP invests in German digital media company
WPP has this week announced a majority stake in German digital media agency k102 for an undisclosed sum.
The investment, made by WPP’s wholly owned marketing communications agency Grey, continues the advertising and media giant’s digital expansion and “strategy of developing its services in fast-growing and important markets and sectors.” WPP has set a target of 35-40% of revenue to be generated by digital work over the next five years. Its digital revenue in 2011 was $4.8 billion USD, which represents a 30% share of WPP’s total global revenue.
k102, which was founded in 2006 and has worked alongside Grey since January 2010, generated €1.3 million last year from work across brands such as Toshiba, Mitsubishi and Visit Malta. The Dusseldorf based company works across mobile, video, search marketing, social media, digital monitoring and digital campaign management.
WPP owned companies employ approximately 7,000 people in Germany and are responsible for revenues of approximately $1.3 billion USD, making Germany WPP's fourth largest market after the US, UK and China.
The announcement, made on Monday, was followed by news that WPP slid 1.1% on the FTSE, closing at 868p. Earlier this year, WPP acquired major digital player AKQA for £348 million – snapping up clients such as Nike, Google and Unilever.
Image credit: Sir Martin Sorrell, Chief Executive Officer of WPP from WPP Image Library
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