Advertising titan WPP plc’s (WPPGY) wholly-owned subsidiary, JWT has recently acquired assets of a shopper engagement agency, Lunchbox LP. Financial terms of the transaction were not disclosed.
Lunchbox specializes in turning shoppers into buyers by creating and connecting custom content to drive sales through its retail partners. Customers can avail of the agency’s solutions online, on mobile devices, through thousands of in-store video displays, as well as in-store via retail television networks and point-of-purchase displays.
Lunchbox was founded in 2005 in Los Angeles and employs over 70 people. The agency generated roughly $21 million revenues for the year ended 31 December 2010. Gross assets for the same period were $10 million.
Based in Dublin, Ireland, WPP Group plc provides advertising and communications services worldwide. The company emphasizes new and rapidly developing markets, new media and consumer insights. Global advertising expenditure is likely to grow by 4.8% in 2011 and by 6.8% year over year in 2012, according to GroupM, a leading global media investment management operation.
The acquisition will enable JWT to benefit from Lunchbox’s client base including Unilever, Walmart and Kimberly-Clark. It is evident from these strategic acquisitions that the company is working hard to expand its presence in fast growing emerging markets.
For the full fiscal year 2011, management expects revenue growth, excluding the impact of acquisitions and currency fluctuations, to be over 6%; while its full year margin is quite likely to exceed the company’s margin improvement target of 0.5%.
The company faces competition from its peers like Interpublic Group of Companies Inc. (IPG), Omnicom Group Inc. (OMC) and Publicis Groupe SA.
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