WPP acquires mobile ad agency Madhouse; sells stake in Rediffusion joint ventures
New Delhi: WPP Plc, the world’s biggest advertising conglomerate which owns agencies like Ogilvy and GroupM, on Thursday said that it has acquired mobile marketing agency Madhouse.
A Chinese mobile solutions and ad network company, Madhouse entered India in 2012 in a 50:50 joint venture with WPP Group as strategic partner and investor in the company. Currently, the agency has offices in Mumbai, Delhi and Bengaluru.
“Mobile marketing and media consumption are exploding with the growing access to devices, driven by a lower cost of devices and data plans. This acquisition will provide GroupM clients enhanced access to innovative mobile solutions, ad products and targeting technology,” stated a statement.
In addition to the acquisition, WPP has also decided to sell its stake in the current joint ventures with advertising firm Rediffusion, including healthcare communications agency Sudler, digital agency Wunderman and marketing communications agency Y&R. WPP said it will develop the three companies as wholly-owned agencies. There will be no change to Wunderman’s existing India businesses.
CVL Srinivas, country manager for WPP in India, said, “India is a key growth region for us and we have a well-defined road map and vision for what we would like to achieve here. WPP is home to some of the best marketing talent in this country and our plan is to steer our agencies to stay ahead of the curve – in terms of both market and client needs, by providing the best-in-class offerings.”
WPP Group companies have offices in Mumbai, Delhi, Bengaluru, Chennai, Kolkata, Hyderabad and many other cities in India. The company employs about 15,000 professionals in the country in the areas of advertising; media investment management; information, insight and consultancy; public relations; branding; direct, internet and interactive.
It handles clients such as fast-moving consumer goods firm ITC, telecom firm Vodafone, confectionery firm Mondelez India, retail chain Shoppers Stop, auto giant Tata Motors, e-commerce platform Myntra, liquor company Pernod Ricard and Hero MotoCorp Ltd, among many others across its various agencies.