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WPP's Ogilvy Forms Strategic Partnership with Demandbase

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Ogilvy CommonHealth Worldwide, one of the operating units of WPP plc , recently formed a strategic technology partnership with Demandbase, a premier San Francisco-based marketing software company. The collaboration with this Account-Based Marketing firm is likely to unveil new business opportunities for WPP to augment its revenues.

Demandbase has carved a niche market for B2B marketing with the Demandbase B2B Data Cloud that enables B2B companies identify and target clients with focused content. The Demandbase B2B Marketing Cloud is a unique subscription-based ad targeting and web personalization solution, which facilitates marketers to connect advertising campaigns directly to revenues. In a nutshell, Demandbase enables diverse businesses to accurately target, engage, convert and retain relevant customers and thereby improve their bottom line.

The collaboration with Demandbase will assist Ogilvy CommonHealth Worldwide to offer a comprehensive solution spanning both the customer relationship management and electronic health record verticals. The partnership is likely to yield higher revenues with targeted content and focused customer reach.

WPP, the parent firm of Ogilvy CommonHealth Worldwide, underperformed the Zacks categorized Advertising and Marketing industry in the last three months as macroeconomic slowdown and geopolitical issues have a direct impact on client spending. WPP recorded an average loss of 6.3% in the last three months compared with a 2.9% decline for the industry. Economic fragility of the Eurozone, particularly after the Brexit referendum, political instability in the Middle East and a striking slowdown in the Chinese economy have added to the woes.



Given these macroeconomic risks, other companies continue to be cautious with regard to advertising and marketing outlay, thereby squeezing advertising budgets. The advertising giant is also witnessing some softness in its Data Investment Management segment as discretionary spending remains under review by clients in mature markets.

However, WPP is one of the largest advertising companies in the world and has accumulated a vast portfolio of global and regional brands and survived the U.S., U.K. and global recessions. Geographically superior position in new markets and functional strength in new media and data investment management will likely help it in achieving steady revenue growth, going forward.

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