by Yasir Ameen
WPP Advertising Agency has been in talks with leading and oldest Digital Advertising Agency of Pakistan for acquiring minority stakes, sources in the industry told Telecom Recorder.
The global agency is carrying out negotiation with local digital agency, however it has yet to be finalized any deal and seemed to be waiting for a green signal from their board members.
WPP will be maintaining accounts of leading FMCG companies of Pakistan for running digital campaigns on local and global social media platforms. It had earlier through its own company JWT acquired minority stakes in Converge Technologies.
This investment continues WPP’s strategy of developing its services in faster growing geographic markets and sectors and strengthening its capabilities in digital media and the application of technology.
WPP has set a target of 35-40% of revenue derived from digital in the next five years and it targeted Pakistan is one of the fastest-growing markets in the world, identified by Goldman Sachs as one of the Next 11 economies to watch.
There are more than dozens of digital media agencies operating in the country for nearly past five years, catering the demand of different multinational and private companies that had realized the importance of social media advertisement for attracting targeted customers of their products and services.
Besides different conventional advertising or media buying agencies either are collaborating with digital agencies or setting up a separate wing of digital media advertisement within to run campaigns of their clients’ on social media.
The digital media business seems flourishing in near future with scores of companies are planning to enter the arena of dynamic advertisement with comprehensive planning and massive budgets.
Presently, there not more than 50 companies onboard with digital agencies for advertisement of their products and services on social media. These companies earmark 8 to 10 percent of total advertisement budget for social media including Google, Facebook, News’ Websites and different blogs, according to an estimate.
Roughly guesstimates showed that different companies spend budget of Rs 440 million in 2010 in advertisement and Rs 540 million in 2011, showing a growth of 22.7 percent growth year-on-year.
As the awareness about digital media is on the rise among the marketers, the business volume is likely to be seen a quantum jump in the current year with entry of big tycoons of different sectors in the digital advertisements with their products and services.