Digital Marketing M&A Values Have Gotten ‘Frothy’, WPP Says

In its 2010 interim earnings report on Friday, WPP says it will continue to buy digital marketing agencies: “Valuations remain reasonable, particularly outside the United States, although some speculative froth does seem to have developed, particularly in digital in the United States and in some faster-growing markets, like Brazil, particularly as our competitors try to play catch-up.”

Where there’s froth, is there bubble?

WPP recently united its digital marketing agencies BLUE, Bridge Worldwide, Quasar and Schematic in a single entity named Possible Worldwide. The idea is to offer advertisers scale in interactive marketing.

Former Schematic CEO Trevor Kaufman is global CEO, Jay Woffington is global president, Michael Graham is COO, Bob Gilbreath is chief strategy officer, Nick Worth is Americas president, Kenny Powar is EMEA president.

In earnings WPP says Possible Anywhere has revenue of over $100 million, 18 offices and 1,000 staff worldwide.

Revenue is up seven percent to £9.3 billion. Digital and interactive results were “up strongly”, the company said.

Release.