Group M, a media buying agency owned by WPP, has acquired a majority stake in digital ad agency The Glitch. The size of the deal was not disclosed. The Glitch will continue to operate as an independently positioned brand,
The acquisition will continue GroupM’s growth strategy in one of the world’s most dynamic economies, and offer clients access to a wide portfolio of leading-edge digital marketing services and holistic content solutions, WPP said in a press release.
The Glitch will continue to operate as an independently positioned brand. Its co-founder and creative chief Rohit Raj and co-founder and content chief Varun Duggirala will join the GroupM leadership team.
The Glitch’s revenues for the year ending March 31, 2017, were around Rs 214 million with gross assets of around Rs 175 million. Its clients include Unilever, Netflix, OYO Rooms, Shutterstock, Tinder and others. It full-service capabilities are digital, video and content strategy, interactive design technology, e-commerce, branding and media planning. The Glitch was founded in 2009 and employs around 200 people in Mumbai and Delhi.
The investment will also continue WPP’s strategy of focusing on three key areas that differentiate the Group’s offering to clients: technology, data and content. WPP’s digital revenues were over US$7.5 billion in 2016, representing 39% of the Group’s total revenues of US$19.4 billion. WPP has set a target of 40-45% of revenue to be derived from digital in the next four to five years. Digital represented 41% of WPP’s revenues as of June 30, 2017.
In January last year, GroupM acquired a majority stake in the media agency MediaCom India.