WPP share price: Ad giant launches new data and technology agency
WPP Plc (LON:WPP) is launching a new marketing analytics company, aimed at helping brands use data and technology to create more effective advertising campaigns. The new business, called Gain Theory, is being created out of existing parts of WPP, with most of its 200 staff being pulled from media, data, technology and marketing divisions in other subsidiaries of the ad giant. Gain Theory will be part of WPP’s GroupM but will be independent of its general operations.
The new entity is being pitched as a “marketing foresight consultancy” that offers analysis of a brand’s marketing efforts and uses advanced analytics to help them to decide how to handle future ad campaigns.
“There’s so much more information available about business performance, consumers, what’s happening with marketing campaigns,” Jason Harrison, Gain Theory’s worldwide chief executive officer, said, as quoted by The Wall Street Journal, which was the first to report on the news. “The expectation is that [marketers] would be able to digest all that and be able to know what to do next and do that very quickly. That is incredibly complicated.”
The aim is for Gain Theory to triple the revenues currently generated by the separate divisions of WPP from which it is to be formed within three years, WPP’s European chief executive and chief operating officer Manjiry Tamhane told the Guardian. The company is starting with some 46 clients, including Diageo Plc (LON:DGE) and Unilever Plc (LON:ULVR).
The creation of Gain Theory underscores WPP’s drive to increase its focus on providing technology and data solutions for the marketing industry. The ad giant has been investing heavily in “digital assets” such as ad technology companies and digital agencies and wants to boost its digital revenues, which accounted for 36 percent of its total revenue last year.
In today’s trading, WPP shares were 0.3 percent lower at 1,594.00p, as of 13:19 BST. The company’s stock has risen 18.6 percent since the start of the year.
As of 16:32 BST, Tuesday, 14 April, WPP PLC ORD 10P share price is 1,587.50p.
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