WPP’s Xaxis and 24/7 Media merge to form programmatic media trading powerhouse
WPP is to merge its programmatic trading desk Xaxis and 24/7 Media managing a combined turnover of $750m (£457m) and 2,700 global clients.
The move will see the 24/7 Media brand dropped, with all future programmatic media trading to come under the Xaxis brand.
WPP’s Sir Martin Sorrell said the aim of the merger is to create “deeper” data connections on behalf of clients.
“Data investment management and the application of technology continue to revolutionize what we can do for our clients.”
“This merger will enhance our ability to innovate by creating deeper data connections and streamlined technology resources.
“We were the first parent company to make a significant investment in advertising technology and today’s deal further extends our leadership in the high growth service sector,” he said.
Xaxis was founded within WPP in 2011 to buy ad impressions in bulk and then layer over client data to help advertisers target the right person at the right time online. Meanwhile 24/7 Media is a collection of publisher-side technologies, which WPP acquired for $649m in 2007.
Earlier today Decipher managing director Nigel Walley called for the TV industry to wake up and start investing in data and advertising or risk “handing the crown jewels” to Sir Martin Sorrell and US agency groups.
The news follows the news of another major merger in the market, between WPP's biggest rivals Omnicom and Publicis. It is yet to be revealed whether the programmatic trading desks of each will be integrated.