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WPP Plc and TikTok recently signed a deal that will be beneficial to both sides. With the partnership, the Chinese video-sharing social networking platform will also be teaming up with influencers for projects directed at WPP clients.
For WPP customers, this deal will allow them to gain early access to new advertising products and other offerings that will be featured on TikTok. This unique access will give them lots of benefits since they will see the new products before the public do.
The collaboration details about the joint effort
It was stated that WPP Plc and TikTok entered into a contract to work together after “recognizing the significant opportunities for brands that both short-form video and digital content continue to present.”
Since the British multinational communications and advertising company will be given early access to advertising products that are being developed, this ensures that WPP and its clients will be at the lead in innovation as TikTok continues to develop a range of products for brands.
"TikTok has quickly demonstrated the power of mobile video and the many opportunities that exist for brands to engage in meaningful and creative ways on its platform," Mark Read, WPP chief executive officer, said in a statement that was released on Feb. 1.
The positive effects of the unique alliance
For starters, MarketWatch reported that when the news of WPP Plc and TikTok’s partnership came out this week, the former’s stock increased by 2.2% in the premarket trading. This is a good start as the company recorded a drop in profits over the last year which was 16.4%.
WPP also owns several agencies such as Ogilvy, Wunderman Thomspon, MediaCom, and VMLY&R, and TikTok can use and benefit from these subsidiaries as well. This is why the deal has been called a “first-of-its-kind” in the industry.
Then again, while some details about TikTok and WPP’s deal was already disclosed, the financial aspect and terms of the contract between the two companies were never revealed.
Despite this, it was predicted that both sides would experience growth with this partnership in all aspects of the business, including financially.
