Direct and digital marketing techniques have been given a major shot in the arm with the release of interim results from WPP Group and Chime Communications, which both show strong growth in DM operations.
Direct and digital are on course to bring in revenues of $4.4bn (£2.7bn) for WPP Group at year end, according to its interim results released this week, accounting for nearly 30% of the group’s revenues.
And, although at 28.1%, this is only a slight rise on last year’s 27.6%, the group predicts this could reach up 40% in three to four years.
Overall WPP unveiled a 37% year-on-year increase in first-half pre-tax profits to £334.3m, after what it described as a “surprisingly” high growth in the UK.
WPP cites leading independent research which recently rated three of the group’s interactive agencies (OgilvyInteractive, VML and Wunderman) among seven “digital leaders”. No other group has more than one.
The Group’s global digital agencies, Wunderman and OgilvyOne, rank as the two largest digital and interactive agencies in the world, with annual revenues of over $950m and almost $900m respectively.
Meanwhile, Chime has reported strong growth in its VCCP Group (which includes Stephens Francis Whitson), as well as in the disciplines of direct marketing, digital, and search. VCCP has contributed to a 34% year-on-year rise in first-half operating profits at Chime’s advertising and marketing services division.
New business wins have included easyJet, Carling, Dairy Crest, Barclays, Eurostar, Burton’s Foods, Diageo, Sky Germany, Ancestry.co.uk, L’Oréal, Merck Serono, Roche and Axa Wealth.
