Another day, and another big digital investment from the world’s largest advertising firm. WPP subsidiary Ogilvy has taken a 33.3 percent stake in DTDigital, a digital marketing agency based in Melbourne, Australia. The move is not just another signal of the firm’s growing base of interactive holdings, but one more sign of its intention to grow its business in the Asia Pacific region: it follows just after WPP research division, Kantar, announced the acquisition of China’s CIC, a social media consumer research firm.
Financial terms of the deal were not disclosed in WPP’s market disclosure of the investment.
DTDigital, which also has offices in Sydney and Brisbane, was founded in 1996 and employs around 110 people. It focuses on digital marketing services, which clients ranging from retailers like Myers and Bunnings to multinational consumer brands like Honda.
The acquisition will not only help WPP expand its client contacts and business in the region, but it will also contribute to its overall aim to grow its interactive business.
WPP has bet big so far on interactive marketing and advertising: it is expected that in 2011 the company will make some 30 percent of its revenues from digital. In dollar terms that works out to digital revenues of $4.5 billion on overall revenues of $16 billion for the year, according to analyst consensus.
WPP says that it is aiming for digital to account for 35-40 percent of all revenues in the next five years.
DTDigital had gross revenues of A$14.38 million ($14.94 million) as of December 31, 2011, with assets of A$4.76 million ($4.95 million).
WPP also did not reveal the value of the CIC acquisition but that company reported revenues of 29.9 million RMD ($4.7 million) in 2011.