The world's biggest advertising company, WPP Plc, is expanding its network to China through the purchase of a digital advertising agency. This is part of the firm's strategy to expand into the world's fastest growing economies, according to an individual familiar with the mater.
WPP had acquired IM2.0 through its operating company VML, which is part of the Young and Rubicam network. This was confirmed by the source, who sought anonymity as the acquisition is still to be announced. The deal would still be subject to regulatory approvals.
China is the third largest market for WPP, just after the US and the UK in terms of revenue and number of associates. The first two markets aggregate revenues at USD1.4 billion and have over 14,000 in their respective employments. For the UK office, around GBP 400 million or USD640 million is being spent to purchase digital advertising assets as well as epansion into expanding markets.
IM2.0 holds offices in Beijing and Shanghai, is engaged in the creation of online strategies and advertising campaigns. Amongst its clients are Dell Inc, Adidas AG, Mondelez International and Qingdao Haier Co.
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