Advertising firm WPP Group plc currently generates 20% of its
revenue from the Asia Pacific, Latin America, West Asia and Africa regions,
according to its director of strategy Mark Reed. However, the London-based
company recently said it wants an even larger share of its revenue to come
from those regions, and acquisitions are the key. Specifically, Business Line
reported WPP will look to buy companies that focus on brand identity, public
affairs, and digital and direct marketing.
One recent move toward that direction was WPP's purchase of 10%
of India's Future Media. WPP also picked up a 51% stake in Chinese marketing
firm Star Echo on June 21 for an undisclosed price. Star Echo, which has
offices in Beijing, Guangzhou and Shanghai, generated a modest $4.9 million in
revenue in 2006.
Despite the interest outside of the West, WPP's biggest recent
deal was the
acquisition
of New York-based online advertising company 24/7 Real Media Inc. for $649
million on May 18. Although the company is not based in the Asia Pacific,
Latin America, West Asia or Africa regions, 24/7 may be able to generate
business from those areas because of the online nature of its business.
—Gerald Magpily
See
Thomson Financial article via Hemscott.com
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