Advertising giant WPP yesterday announced that it has taken a majority stake in Chinese retail marketing consultancy DPI through one of its wholly owned subsidiary companies in the region G2.
The company refused to say how much it was paying for the stake, but the move continues its investment in China which is currently WPP’s fourth largest market with revenues of approximately £583m. The group now employs almost 12,000 people across China.
DPI employs around 80 people and has offices in Guangzhou and Shanghai. Its unaudited revenues for the year ending 31 December 2009 were HK$29.7m with gross assets at the same date of HK$48m.
The consultancy specialises in retail and environmental advertising and merchandising. Its clients include Ferrero, GlaxoSmithKline, Haier, Hong Kong Tourism Board, Mannings, Mead Johnson, Nestea and Procter & Gamble.
“The market for brand activation agencies is growing exponentially in the Asia Pacific region and we identified DPI as best-in-class with its penetrating marketplace knowledge and a quality offering, particularly in the shopper marketing and retail space,” said Nirvik Singh, chairman and chief executive of G2 Asia Pacific.
AD REVENUES RETURN TO 2005 LEVELS LED BY TV ADVERTISING
MagnaGlobal – part of the Mediabrands group – has doubled its 2010 media revenues growth forecast from 3.1 per cent to 6.2 per cent, saying advertising revenues grew at a faster than expected rate in the first half of the year, led by the TV sector.
While TV advertising was higher than expected, MagnaGlobal said online advertising would continue to outpace it in 2010 and in the years ahead. By 2015 the medium will account for more than 35 per cent of the industry, greater than £4.8bn in total.
MagnaGlobal said the media economy generally will generate £11.6bn in advertising during 2010 roughly the same as in 2005 suggesting a strong recovery in advertising revenues.