Deal underscores advance of advertising groups over technology services industry
07/18/2022
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Renan Mota (right), Stefano Zunino and Felipe Macedo — Foto: Divulgação
Nearly 18 months since its first move to buy a software company in Brazil, WPP is making a new incursion in the technology field. The British advertising and public relations group has acquired Corebiz, of e-commerce systems and services. The acquisition was of 100% of the capital. Financial details of the deal, which will be officially announced this Monday, were not disclosed.
“The deal shows the importance of the digital area in WPP’s strategy. Technology and e-commerce have become fundamental to the integration of customer services,” says Stefano Zunino, the group’s general manager in Brazil. “During the pandemic, e-commerce was the pillar that grew the most for WPP.”
For WPP, one of Corebiz’s attractions is its expertise in the technologies of Vtex, a Brazilian company that owns an e-commerce platform and has been listed on the New York Stock Exchange since last year. Many WPP clients already use these technologies, which are quick to implement, which makes the acquisition strategic to gain critical mass, says Mr. Zunino.
The acquisition underscores the advance of advertising groups over the technology services industry, which puts them in increasingly direct competition with large consulting firms.
In February last year, WPP acquired Belo Horizonte-based DTI, which creates and integrates systems to help businesses adapt to the digital economy. Since then, DTI’s headcount has doubled to 1,600 people, Mr. Zunino says. “To help our customer you have to have a holistic view. We are a creative transformation company. And creativity is not just advertising.”
Abroad, says the executive, it has been a decade since the group — in charge of traditional advertising and marketing brands such as Ogilvy, VMLY&R and Wunderman Thompson — acquired companies that are outside the classical advertising sphere.
For Corebiz, the acquisition by WPP represents a boost in its ability to expand operations more quickly, especially abroad.
The company has regular customers in about 40 countries and bases itself in four international markets: Mexico, Argentina, Chile, and Spain. Revenues abroad have already become relevant in relation to total sales, but are below their potential, says Mr. Macedo.
Corebiz operates in e-commerce projects that include everything from initial stages to media management services and sales performance analysis. The main focus is on the so-called customer experience, says Mr. Mota, whose objective is to facilitate the consumer’s access to the sales channel and make the client loyal to the brand. Among its clients are global companies such as Whirlpool, Motorola, and Carrefour.
For WPP, Brazil is a very important market and is on the group’s global growth path, says Mr. Zunino. “To innovate, you have to make experiments. Acquisitions are part of the strategy, but we also want to grow in the country in an organic way.”por taboolaLinks patrocinadosConteúdo Publicitário
*By João Luiz Rosa — São Paulo
Source: Valor International