WPP takes ownership stake in Hong Kong digital agency

WPP has acquired a majority stake in Hong Kong-based digital consultancy ARBA, adding a strong roster of financial services clients and expertise in working with mobile apps.

ARBA, which was acquired by WPP's Ogilvy & Mather agency, generated revenue of around HK$17.3m in the year ending March 2017 from clients including Prudential, Hang Seng Bank and FWD.

Founded in 2012 and with 40 current staff, the Hong Kong agency offers digital design and software engineering services, with its strong expertise in the financial services industry, particularly financial services and insurance providers.

"The acquisition advances Ogilvy's existing capabilities in digital strategy and creative through the technical and production strengths of ARBA, which include enterprise mobile apps, responsive web and intranet, as well as CRM and predictive analytics," WPP said.

The FTSE 100 ad giant has endured a tough year, with third quarter results in October showing sales growth remained negative as the advertising market continued to be hit by client cost saving, with America proving the most challenging.

To react to the new client landscape, boss Sir Martin Sorrel said the group had increased its "focus and urgency in implementing our four-pronged strategy of horizontality, fast-growth markets, digital and data".

The ARBA acquisition adds to group digital revenues that represented 39% of group revenues last year and 41% in the first half of the year as Sorrell aims reach 45% from digital in the next four to five years.

As for fast-growth markets, WPP companies in Greater China generate revenues of almost $1.6bn, the company said.