In a bid to extend its footprint in South Africa, Ogilvy &
Mather, a wholly owned subsidiary of premier global
), acquired a majority stake in mobile marketing company, Strike
Media Proprietary Limited, for an undisclosed amount.
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Strike Media is one of the leading full service mobile marketing
companies in South Africa, offering customized mobile campaigns
and value added services to several best-known organizations in
the country. In addition to traditional services such as bulk
messaging, the company provides consulting, mobile content, and
mobile marketing campaigns for customer research and analysis
along with mobile payment methods.
With increased penetration and access to mobile technology,
mobile has fast become a mainstream media and marketing
communication tool across the world and has reportedly become the
seventh mass media. Consequently, corporate organizations are
increasingly utilizing mobile media for mass marketing
initiatives to promote their brands.
Post-acquisition, Strike Media will operate as a separate company
but will be a part of Ogilvy & Mather. With 8,000 digital
specialists, Ogilvy & Mather is one of the largest marketing
communications companies in the world with industry-leading units
in various disciplines such as advertising; public relations and
public affairs; branding and identity; shopper and retail
marketing; direct, digital, promotion and relationship marketing;
consulting, research and analytics capabilities; branded content
and entertainment; and specialist communications.
With Strike Media on board, WPP will be able to extend its
product portfolio and gain a footprint in the faster-growing
sectors like digital, data, and application of technology. Over
the next five-year period, WPP expects digital revenues to
account for 35%-40% of its total revenue. In 2013, the company
expects its digital revenues to exceed $6 billion, representing
over 33% of its total revenue.
However, WPP should remain wary of tough competition from other
players in the market such as
Clear Channel Outdoor Holdings Inc.
Publicis Groupe SA
AirMedia Group Inc.
). WPP currently has a Zacks Rank #3 (Hold).