Advertising

Creston looks to sell advertising agency DLKW

(FT.com) - Creston, the marketing services group, is expected to announce the proposed sale of its advertising agency, DLKW, for between £20m and £30m when it reports full-year results on Monday.

DLKW, the agency that created the adverts featuring Howard the singing Halifax manager, is expected to be sold to Lowe Worldwide, part of Interpublic Group of the US, subject to the approval of Creston shareholders. Creston bought DLKW in 2005 , for about £38m in cash and shares.

The deal helped Creston double in size, boosted its profile, and allowed it to offer a wider range of marketing services to clients.

DLKW has had a number of successful campaigns but became vulnerable after Don Elgie, Creston’s chief executive, said he was keen to focus on new growth areas, particularly digital, while reducing the group’s exposure to traditional advertising.

The growing popularity of social media, coupled with the increasing use of mobile phones, has altered the landscape for marketing, forcing many advertising agencies to rethink their models.

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