WPP Buys Turkish, South African Agencies
WPP made further inroads into the Turkish and South African markets this week with the purchase of two specialist agencies. Financial terms were
The holding company's agency network Y&R bought a majority stake in Turkish digital agency C-Section, short for CS Reklam Hizmetleri Sanayi Ve Ticaret, based in Istanbul. Sister shop Ogilvy & Mather bought South African mobile marketing specialist Strike Media.
Founded in 2004, C-Section specializes in creating microsites, apps, digital campaigns and video production for the Turkish market. The agency employs approximately 40 people and clients include Coca-Cola, Vodafone and TEB BNP Paribas.
WPP said C-Section's revenues in 2012 were approximately $4 million. The agency will retain its independent identity and will not be merged with Y&R Istanbul.
In its latest ad spend forecast, ZenithOptimedia identified Turkey as one of the six fastest-growing markets beyond the BRIC countries and predicts that it will add nearly $1.2 billion in ad expenditures by 2014. WPP said all of its companies in Turkey combined employ nearly 1,000 people, generating annual revenues of $100 million.
South Africa’s Strike Media, founded in 2003, delivers customized mobile strategy, campaigns, design and development services to clients across the financial, retail, consumer and telecommunications sectors. Headquartered in Cape Town, key clients include Vodacom, MTN, Cell C and Metropolitan Health. Revenues for its last full fiscal year totaled nearly $2 million.
South Africa has also been identified by ZO as one of the fastest-growing ad markets beyond the BRICs that is forecasted to add more than $2 billion in ad spending by 2014. WPP didn’t break out its holdings for South Africa specifically. but did disclose that throughout Africa it now employs over 24,000 people generating over $600 million in annual revenue.