Yesterday’s announcement that WPP and STW Communications are to merge will create a local firm of advertising, media and marketing services worth more than $1 billion.
The merger will see a combined total of 75 local businesses under the one umbrella including some of Australia’s biggest media names including WPP’s MediaCom, GPY&R and MEC and STW’s J. Walter Thompson and Ogilvy.
The union had been simmering for many years with the two companies working previously to create agencies such as Ogilvy and Mather and Singleton. WPP was already a large shareholder in STW. A fully-fledged merger was decided upon earlier in 2015
The combination of WPP’s Australia and New Zealand operations with STW will create a business with reported annual revenue of $847 million and with a combined $142 million in earnings before tax.
Speaking to the Media section of The Australian, STW boss Mike Connaghan (pictured above) said the merger would double the business and bring scale to the operations and drive down costs.
“When you put the two businesses together we’ve really got businesses of scale across every single discipline. Putting the two together is two plus two equals five. Even when we have big pitches here for local clients we’re often asking our WPP partners for help whether it be banking or retail. Being able to tap into WPP has been important, now it’s going to be much easier,” he said.
In a statement, Sir Martin Sorrell of WPP said of the merger: “The merger of our Australian and New Zealand operations with STW, will give us a unique opportunity to offer our local and international clients a comprehensive set of services and to make sure we can offer the best talent through country management. It will also enable STW to focus on the Australian and New Zealand markets, which it knows best, with a structure that will strongly incentivise its people.”
Twitter has just experienced its fastest growth in revenue since 2014, with the social media platform benefiting from increased interest from advertisers. Revenue was up 74 per cent YoY, according to the company’s Q2 results, reaching $US1.19 billion ($1.6 billion) from $US683.4 million ($925 million) 12 months ago. The strong results came in the same […]
Wild Turkey has announced the launch of its new global creative campaign and platform, ‘Trust Your Spirit’, featuring the brand’s creative director and spokesperson, Matthew McConaughey. The global campaign and platform ‘Trust Your Spirit’ is to encourage people to be bold, unapologetically themselves, and stay true to who they are. The global tagline and ethos […]
Telecommunications company Optus has announced it will launch the world’s first TikTok sign-language activated filter. Featuring Optus ambassador Ian Thorpe, Optus will unveil a branded effect that shows TikTok users how to say key phrases in Auslan sign language, including ‘How are you?’ and ‘It starts with Yes’, through the hashtag challenge #SignYes. Optus will […]
Podsights has revealed new insights into the effectiveness of advertising in podcasts, tracking global and Australian podcast advertising trends. This is the first Australian report to be published since ARN partnered with Podsights to set the standard for best-in-class podcast advertising measurement. The report includes additional analysis and follows a series of Measurement Masterclasses held for […]
NGEN’s 2021 charity cup has raised over $175,000 for UnLtd charity partner Gotcha4Life. Gotcha4Life is a not-for-profit foundation raising awareness and funding to provide educational workshops and innovative programs that build mental fitness in individuals and communities. While Sydney and Brisbane completed the Charity Cup in June, before Covid restrictions hit, the final leg in […]
Australian tech incubator Cicada Innovations and Biennale of Sydney are launching the ‘New & Sustainable Materials Challenge,’ in an effort to create a more sustainable future. The works of chosen material-makers will be showcased to millions of Biennale audiences, exhibition partners, and exhibition makers globally. The Challenge is open to any Australian and UK startups, […]