WPP’s Possible Worldwide acquires Grape LLC in Russia

Possible Worldwide, a global interactive marketing agency and part of WPP Digital, is to acquire a majority stake in Grape LLC in Russia.

Founded in 2002 by Andrey Vinograd and Boris Ryss and headed by CEO Andrei Anischenko, Grape is a Moscow-based digital marketing services agency with a focus on website and social media strategies. The agency employs 124 people and major clients include Henkel, JTI, MTS and SABMiller.

Grape’s consolidated unaudited revenues for the year ended 31 December 2011 were approximately RUB 425 million with gross assets as at the same date of approximately RUB 216 million.

This investment continues WPP’s strategy of developing its services in fast-growing and important markets and sectors and strengthening its capabilities in digital media.  WPP’s digital revenues totalled US$4.8 billion in 2011, representing approximately 30% of the Group’s total revenues of over US$16 billion.  WPP has set a target of 35-40% of revenue to be derived from digital in the next five years.

WPP companies, including associates, employ around 1900 people in Russia with revenues of well over US$200 million.  Across the Central and Eastern European markets collectively, WPP companies, including associates, employ almost 6,000 people with revenues of approximately US$600 million, underlining its leadership position in the advertising and marketing services sector in this important region.

UK, London & Russia. Moscow

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Publicis Groupe Acquires Longtuo

Publicis Groupe has acquired Beijing-based Longtuo, a digital marketing company with strong eCommerce expertise in creative, customer acquisition, marketing solutions and measurement tools. Longtuo will be part of the Groupe-owned Razorfish network and will be named Razorfish Longtuo China.

Founded in 2000, Longtuo employs 200 people throughout its Beijing headquarters and Shanghai and Guangzhou offices. The addition of Longtuo will more than double the size of Razorfish in China, which currently employs 130 people and provides e-Commerce services to clients such as Converse, Hertz, and GM Onstar.

Longtuo serves a prestigious roster of Chinese marketers including 360buy, Kohler, Masamaso, Taobao (the country’s two largest B2C e-Commerce portals) and Yves Rocher. Longtuo also contracts work for Renault, providing website development and content management, as well as traffic measurement and analysis.

The acquisition of Longtuo will give Publicis Groupe more commanding clout in China’s booming e-Commerce market, which Forrester projects to be a $94.6 billion business in 2012. eMarketer estimates the market to grow at more than 92% annually for the next three years and forecasts China will become the world’s largest e-Commerce marketplace by 2015.

Longtuo’s CEO and founding partner, SU Yi, will become Managing Director of Razorfish Longtuo China, and will report to Vincent Digonnet, President of Razorfish Asia Pacific and Executive Chairman of Razorfish Greater China.

Jean-Yves Naouri, Publicis Groupe COO and Chairman of Publicis Groupe China added: “The forecasts for e-Commerce growth in China are spectacular. With new advances in payment technology, broadband access and safe delivery systems making e-Commerce an attractive alternative to retail shops, China has the potential to become the world’s premier e-Commerce market very swiftly, outstripping even the United States. This acquisition means we’re now perfectly positioned to offer our international clients first-in-class local expertise. In addition, with 70% of e-Commerce spending in China currently going to Chinese businesses, Longtuo opens our doors to a number of key clients. The Groupe is accelerating our drive to meet our ambitious targets for growth in China.”

The acquisition of Longtuo is another step towards Publicis Groupe’s objective to double its size in the fast-growing Chinese market between 2010 and 2013. This goal is part of an overall strategy of strongly boosting revenue derived from emerging economies and from the digital sector. In the past four months Publicis Groupe has acquired four agencies based inChina: UBS (February 2012), King Harvests (March 2012), Luminous (March 2012) and now Longtuo. Since 2010, the Groupe has acquired W&K (April 2010) G4 (July 2010) Eastwei Relations (November 2010), Interactive Communications Ltd (February 2011), Dreams (May 2011), Genedigi (June 2011), Wangfan (November 2011), and Gomye (November 2011).

France, Paris & China, Beijing

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Publicis Groupe has acquired Indigo Consulting

Publicis Groupe has acquired Indigo Consulting, a full-service Indian agency providing website design and development, search engine optimisation, usability research and testing, and marketing online, on mobiles and in social media.

Since it was founded in 2000, Indigo Consulting has developed websites, software solutions and digital marketing programs for clients around the world, including Asian Paints, HDFC Bank, HSBC (India, Asia-Pacific and Middle East), Loop Mobile, Tata AIG Insurance and South Australia Tourism. The agency currently employs a team of 160 at its Mumbai headquarters and Delhi office. Their work has been recognised with Webby awards, W3 awards and Abbys.

Indigo Consulting will operate as a unit within the Leo Burnett Group in India and will retain its name. Its founder, Vikas Tandon, will remain as Managing Director, reporting into Arvind Sharma, Chairman of the Indian Subcontinent for Leo Burnett.

“From a global point of view, the potential and opportunities that India offers are massive,” explained Tom Bernardin, Chairman and CEO of Leo Burnett Worldwide. “Over the years we have increased our efforts into this important market. Indigo Consulting, with its strong track record as a full-service interactive and technology agency, is the perfect strategic fit for our aspirations in India and around the world”.

“This alignment means we will bring our world-class digital marketing capabilities to Leo Burnett’s clients, while also benefiting from additional knowledge and insight on brand and creative communication through cross-training and collaboration,” said Vikas Tandon, Managing Director of Indigo Consulting.

“Our growth strategy for Leo Burnett in India and Asia Pacific is based on two core pillars: digital and shopper-marketing” added Jarek Ziebinski, President of Leo Burnett Asia Pacific. “India is a key market for us, and it’s reporting explosive growth in the digital sector. We want to make sure Leo Burnett has the right infrastructure in place to meet the needs of tomorrow. I also see Indigo Consulting developing beyond India, to become an important player within our network in Asia Pacific and globally.”

Currently advertising and marketing online represents less than 3% of overall adspend in India, according to ZenithOptimedia, but the sector is forecasted to boom. ZenithOptimedia estimates that over the next three years, India’s digital adspend will increase by roughly 30% a year, driven by the spread of smartphones and the youth culture of social networks. Publicis Groupe aims to double its size by 2015 in India, which is the world’s 16th largest advertising market.

France, Paris & India, Mumbai

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WPP Digital invests in mySupermarket

WPP Digital has made an investment of $7 million for a minority stake in Dolphin Software Ltd., doing business as mySupermarket, a company which operates a shopping site that allows consumers to compare prices of entire shopping baskets and buy from the major UK online grocery and health & beauty retailers. It has over 2 million monthly unique users in the UK and is growing approximately 100% year on year.

Founded in 2006 and with principal operations in the US, the company employs 70 people and has offices in London, New York, Tel Aviv and Tokyo.

Terms of the deal were not disclosed.

UK, London

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Omnicom Media Group China acquires NIM DIGITAL

Omnicom Media Group is to acquire NIM DIGITAL, a digital agency in China specialising in media planning & buying, search and digital production services. This partnership will enable Omnicom Media Group to broaden its digital expertise and scale to the benefit of its client portfolio.

Barry Cupples, CEO Omnicom Media Group Asia Pacific, said “NIM DIGITAL has a strong local presence and deep industry expertise. We are pleased to bring them into our group and believe they will be a great asset. Both Omnicom Media Group and NIM DIGITAL’s clients will benefit from the combined entity’s increased media communications scale, digital media portfolio and expanded service offerings.”

Doug Pearce, CEO Omnicom Media Group China, said “with NIM DIGITAL, we are partnering with one of the premier digital entities in China, one that is focused on delivering outstanding work and value to their clients.” He continued “while we have grown organically very quickly, the addition of NIM DIGITAL will add significantly to our digital capabilities, particularly in search, while having access to digital production increases the breadth of our service offering to clients.”

China, Shanghai

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WPP acquires EffectiveUI

WPP has acquired all the assets of EffectiveUI, Inc., a leading user experience agency that designs and develops custom web, mobile, desktop and touch-enabled applications.

Founded in 2005, EffectiveUI is based in Denver, Colorado with an additional office in Rochester, New York and employs 100 people. Specializing in customer insight and user-centered design and development, EffectiveUI has helped companies such as AAA, American Greetings, Boeing, National Geographic, Navy Federal Credit Union, CenturyLink and TIAA-CREF improve digital interactions with customers. Inc. magazine has named EffectiveUI to its annual list of America’s fastest growing private companies – the Inc. 500/5000 – for three consecutive years.

EffectiveUI’s unaudited revenues for the year ended 31 December 2011 were $20.8 million, with gross assets at the same date of $6 million.

USA, Denver, CO

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WPP to acquire Carnation Internet Tanácsadó Zrt in Hungary

WPP owned operating network Possible Worldwide, the global interactive marketing agency, is to acquire all of the shares in Carnation Internet Tanácsadó Zrt in Hungary (“Carnation”).

Founded in 1997 and headquartered in Budapest, Carnation is a full-service digital marketing services agency with additional offices in Serbia, Austria and Romania, servicing a variety of clients throughout the Central and Eastern Europe region.   The agency employs more than 75 people and major clients include Coca-Cola, MTV, Procter & Gamble, and Telenor.

Carnation’s consolidated unaudited revenues for the year ended 31 December 2011 were HUF 1,341 million with gross assets of HUF 1,431 million at the same date.

Hungary, Budapest

WPP acquires Crowdverb, an advocacy firm in the US

WPP’s wholly owned subsidiary Burson-Marsteller has acquired the assets of Crowdverb. It will be aligned with Direct Impact, grassroots advocacy firm that is also part of Burson-Marsteller. Terms of the deal were not disclosed.

Crowdverb is a start-up company based in Seattle, Washington, with an office in Austin, Texas. Crowdverb specializes in using an intensely data-driven approach to provide cost-effective, highly scalable activist mobilization around issues and legislation, to manage brand reputations and promote products. Founding partners Cyrus Krohn, Todd Herman and Sally Poliak have all worked in the technology sector, bringing a range of experience from companies including Microsoft and Yahoo, and Krohn and Herman served successive terms leading digital strategy for the Republican National Committee. Poliak is a 2010 recipient of the Stevie Award for Women in Business.

Crowdverb will complement the fundamentals of traditional grassroots advocacy with technical counterparts. The new offerings will include proprietary technologies, data and tools with advanced micro-messaging tactics that target the beliefs and attitudes of voters, consumers and activists.

USA, Seattle, WA

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JWT to acquires stake in digital agency, Converge Technologies in Pakistan

JWT (part of the WPP group)is to acquire, by subscription for new shares, a minority stake in Converge Technologies Pvt Limited, a leading provider of technology-based marketing solutions and digital marketing services agency in Pakistan.

Converge’s offer includes 360 degree activation, digital content marketing, customized applications for SMS, interactive voice response, web, WAP, kiosk and platforms, digital viral marketing, data and research management and content services including music, interactive voice response, script writing, production and post production, interactive web portals, entertainment content, news and broadband gaming, and building mobile websites.

Founded in 2007, Converge is based in Karachi and employs 90 people. Clients include Nokia, Pakistan State Oil, PTCL and Unilever.  Converge’s revenues for the year ended 30 June 2011 were PKR 187 million, with gross assets at the same date of PKR 76 million.

Pakistan, Karachi

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The Economist Group acquires TVC Group

The Economist Group has acquired TVC Group. TVC is a communications agency, based in London, which specialises in a content-driven approach to public relations and creative services. TVC will continue to provide a stand-alone offer to its existing clients that include major brands across the consumer, government and luxury sectors. Terms of the deal were not disclosed.

Nigel Ludlow, UK managing director at The Economist Group, said: “This is a great move for The Economist Group. In a rapidly-changing media landscape, one consistent factor is our clients’ desire to communicate across a range of platforms and reach audiences in innovative ways. With TVC on board we will further advance the conversation with our partners and build relationships that reflect diverse and evolving requirements.”

TVC Group employs over 50 people in London serving a range of broad clients including Coca-Cola, British Gas, Aviva, Louis Vuitton and Jaguar Land Rover. Principal executives who will join The Economist Group include Nicky Minter-Green (managing director), Adam Clyne (commercial director), James Myers (broadcast director), Sarah Harris (strategy director) and Greg Lappage (creative director).

UK, London