- WPP has announced the acquisition of Fenom Digital, a digital commerce agency that specializes in Salesforce which will become a part of Wunderman Thompson, a global marketing and communications agency.
- This acquisition follows a trend of agency holding companies focusing on extending their e-commerce capabilities.
Fenom Digital’s acquisition by WPP is part of a larger trend of agency holding companies focusing to grow their e-commerce capabilities. Last year, IPG’s acquisition of RafterOne, which aimed to offer end-to-end commerce solutions that cover a range of functions such as analytics, marketing, and customer experience management.
Fenom’s Salesforce expertise and relationships will likely help Wunderman Thompson expand its business offerings and capitalize on the increasing demand for e-commerce solutions.
Neil Stewart Stated On The Acquisition
Neil Stewart, CEO of Wunderman Thompson Commerce & Technology, said in a statement that they have been highly impressed at the sales growth [Fenom has] achieved for their clients. Their expertise complements and strengthens the world-class Salesforce capability that they already have in North America. They are looking forward to bringing their combined expertise to service clients across multiple Salesforce clouds.
The online retail industry is expected to grow from $3.3 trillion in sales today to $5.4 trillion by 2026, making it a potential growth area for agencies and holding companies.
Salesforce, as one of the leading cloud-based CRM solutions, is an important platform for agencies to understand and leverage to meaningfully contribute to their clients’ businesses. However, it has been struggling as companies have been re-evaluating their spending on software as a service (SaaS) during the current economic uncertainty.
Last week, the company announced it would lay off about 10% of its workforce, with many of those cuts coming from its Tableau data analytics division, the latest evidence that the digital space is taking a big hit during the current economic uncertainty.