O&M expands regional presence in China
China - Ogilvy & Mather will acquire a 49% stake in advertising agency Nanjing Yindu, a firm which operates across the Jiangsu, Anhui and Zhejiang provinces.
The acquisition expands Ogilvy's reach into the Yangtze River Delta adds some 250 additional employees.
The agency, which will be renamed Yindu Ogilvy, works with Jiangsu Mobile, Jiangsu Yanghe Brewery, MoonHare, Longliqi and China Construction Bank.
Li Zhang (pictured right), chairman of Nanjing Yindu will continue to serve in the same role and will report to TB Song (pictured left), chairman of Ogilvy & Mather Greater China.
Song said in order to prepare for the inevitable shift of business interests to lower tier Chinese cities, it has been exploring opportunities for global clients to pursue expansion in China and for Chinese brands to reach out.
Miles Young, global CEO of Ogilvy & Mather, said the investment confirms the importance of China as a market for its clients - Chinese and multinational.
"It points to the expansion of the market beyond the traditional big three cities," he added.
The move also caps off a string of acquisitions by the WPP group in recent weeks.
Yindu held gross assets as at 31 December 2010 of RMB 57.8million and reported billings for 2010 of RMB 428.5million.
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- Ogilvy and Mather
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