Dive Brief:
- WPP acquired influencer marketing agency Goat, which employs more than 150 people in three global offices, according to a company release.
- Goat has worked with brands such as Dell, Beiersdorf, Meta, Tesco, Uber, EA, Natura and Augustinus Bader. It will become part of GroupM, WPP’s media investment group, and will be merged with the holding company’s current influencer marketing company, Inca.
- The merged unit will go to market as Goat and will employ more than 300 individuals and have a presence in more than 30 markets around the world.
Dive Insight:
WPP’s growth strategy through mergers and acquisitions continues, with its latest deal pointing to an expanding commitment to influencer marketing, an important tactic for brands looking to capture consumers’ social media attention. Advertiser spend on influencers will top $6 billion in 2023, according to a forecast by research firm Insider Intelligence.
In a reflection of how influencer marketing is being integrated into broader performance marketing programs and scaled globally, the merged Goat will operate as part of the cross-channel performance organization GroupM Nexus.
“[The acquisition] gives us the ability to deliver accountable, cross-channel, and data-driven influencer solutions for clients anywhere in the world,” noted GroupM global CEO Christian Juhl, in the release.
Nearly two-thirds of marketers (65%) plan to increase their influencer marketing budgets in the next six months, according to Capterra’s 2023 Influencer Marketing Survey. At the same time, many marketers are unclear on their return on investment in these programs. According to the research, 41% of marketers believe they are overpaying influencers, underscoring the need for data-driven solutions in the market.
WPP in February 2022 acquired influencer marketing agency Village Marketing, with its founder telling Digiday soon after that the deal was a sign of how influencer marketing is becoming less siloed. In the past six months, WPP has acquired agencies including 3K Communications, Fenom Digital, Diff, Passport, Jeffrey Group and Newcraft.
