We had a post last week saying London-based advertising major WPP is finding it difficult to aquire companies in India because of a jump in valuations of target companies due to venture capitalists’ interest. The Business Standard reports today that WPP CEO Martin Sorrell, who is on his annual India tour, is planning to team up with venture capital funds to expand its digital and online advertising business in India. Apparently, the group has already adopted this model in China. The communications company also plans to launch 24/7 Real Media, a digital marketing firm it acquired in May, in India and the rest of Asia. “Although Internet penetration is still small, especially in regions like India and China, most people who have access to it spend 20 per cent of their time on it. This makes online advertising important,” said Sorrell.
Sorrell also said that there are too many advertising brands and that his firm would look at increasing its stake in agencies like Rediffusion DY&R.