WPP snaps up Chinese digital agency

15th Oct 2013 09:21

WPP has acquired Chinese digital ad agency IM2 for an undisclosed fee as it looks to expand in fast-growth and digital markets. The FTSE 100-listed advertising behemoth, which already generates $5bn of annual revenues from the Asia Pacific region, said IM2 was one of China's "leading and most successful pure play digital agencies". "This acquisition marks a further step towards WPP's declared goal of developing its networks in fast-growth and important markets and sectors," it added. The group recently raised its targets from 35%-40% to "at least 40-45%" for all its fast-growth markets and new media over the next five years as it looks to stay ahead of its two largest rivals, Publicis and Omnicom, as they plan a potential merger as "POG". IM2, which was named 2013 Agency of the Year in China by the Mobile Marketing Association, generated revenues of 72m renminbi (RMB) in 2012 and had gross assets of RMB 200m at year-end. Employing roughly 230 people in Beijing and Shanghai, it has a client portfolio that includes Adidas, Dell and China Merchant Bank.Shares in WPP were up 2.1% to 1,268p at 09:31 on Tuesday. OH