Ogilvy Buys 33.3% Stake in DTDigital to Expand Offering in Australia

SYDNEY, Jan. 18, 2012 /PRNewswire/ -- Ogilvy & Mather announced today that it has acquired a 33.3% position in STW's leading digital communications firm, DTDigital.

DTDigital, one of Australia's largest and most successful digital agencies, joined STW Group in 2003 and during the next eight years grew revenues from $1 million per annum to forecast revenue for 2012 of $14 million. Clients include Bunnings, Myer and NAB.

For the past four years, DTDigital has been working alongside Ogilvy in Melbourne. Today DTDigital has more than 110 full-time staff in its Melbourne office.

STW Group CEO Mike Connaghan said: "It's not in our nature to sell parts of our prized assets but the logic in this instance was overwhelming. DTDigital already partners closely with Ogilvy Group Melbourne, and there are intentions to expand this partnership with Ogilvy to other markets. The integrated nature of many of our client campaigns make it absolutely right for Ogilvy that we have DTDigital even further aligned with that business. It's a good deal for all stakeholders."

STW Group owns 66.7% of Ogilvy Group Australia, with WPP holding the remaining 33.3%. The investment by WPP in DTDigital brings its ownership in line with that of Ogilvy Australia.

"Ogilvy know brand, social and CRM while DTDigital provides great digital, channel and technology skills making the combination a winning formula. We have worked in partnership for the past four years and acquiring part of DTDigital cements that relationship, allowing us to offer first class integrated digital to clients inside Australia and across Asia," said Paul Heath, CEO, Ogilvy & Mather Asia Pacific.

DTDigital is an award-winning digital marketing design and technology company that has been a pioneer in the industry for more than 15 years.  Founded by STW Group's Chief Digital Officer David Trewern in 1996, DTDigital evolved from a multimedia design studio into a business that's helped transform some of Australia's leading brands in the digital age.

Success has come through a unique, full-service offering, which includes deep specialisation in high growth areas that are not typically part of an 'advertising agency' offer.

Unlike many agency competitors, DTDigital has been able to develop capabilities in specialist areas beyond strategy, creative and production such as user experience, design and consulting, advanced web application engineering, eCommerce, email marketing, data and analytics, social media and social business strategy, mobile marketing and application development, and immersive 'beyond the browser' digital experiences.

This breadth of specialist capabilities allow DTDigital to focus on innovation, conceptualising, developing and connecting the entire digital 'ecosystem' for sophisticated clients that increasingly connect and transact with consumers via digital channels.

DTDigital enjoys its own unique culture, but is also very much a part of the Ogilvy family and this deal will bring both businesses into closer alignment. Shared values, tools and processes offer clients deep digital and technology expertise, coupled with the people, professionalism, creativity, track record and global learnings of Ogilvy. Together Ogilvy and DTDigital offer a seamless range of skills that is broader than anything else in the market.

"This deal accelerates DTDigital's launch to the Sydney market. Andrew Baxter, David Trewern and Brian Vella were instrumental in bringing the businesses together in Melbourne and the same team will ensure it is an instant success in Sydney," Connaghan said.

Ogilvy & Mather

Ogilvy & Mather is one of the largest marketing communications companies in the world. Through its specialty units, the company provides a comprehensive range of marketing services including: advertising; public relations and public affairs; branding and identity; shopper and retail marketing; healthcare communications; direct, digital, promotion and relationship marketing. Ogilvy & Mather services Fortune Global 500 companies as well as local businesses through its network of more than 450 offices in 120 countries. It is a WPP company (NASDAQ: WPPGY). For more information, visit www.ogilvy.com.

SOURCE Ogilvy & Mather