WPP has agreed to acquire Cincinnati-based Promotion Execution Partners (“PEP”), a project management and procurement company that oversees shopper marketing promotions for clients, in the U.S.
Terms weren’t disclosed, and the agreement is subject to regulatory approval.
Since its founding over a decade ago, PEP has managed over $3.5 billion in marketing spend across 35,000 campaigns for over 500 brands worldwide. Clients include Heinz, Johnson & Johnson, Kraft Foods Group and Procter & Gamble.
PEP employs approximately 200 people and has offices in Mexico, Puerto Rico and Panama, in addition to its Cincinnati flagship office. The firm manages budgets, timelines and vendor coordination for programs like direct-mail campaigns, sweepstakes and promotion events on behalf of clients.
The acquisition is the holding company’s latest move in the shopper marketing arena.
Last month, the holding company, via a Xaxis transaction, acquired Triad Retail Media. Other Group assets in the sector include Barrows, Grey Shopper, Labstore, Geometry Global, Smollan Group, Kantar Retail, The Futures Company, Mindshare’s Shop+, Tenth Avenue’s Shopper2Buyer.
Spending on shopper marketing is projected to grow to $18.64 billion from 2016 to 2020, representing a compound annual growth rate of 5.8% according to WPP, which cited the Association of National Advertisers as the source for the figures.