Aegis tips solid growth in 2008

Singapore - Patrick Stahle, CEO of Aegis Media Asia Pacific, is predicting a strong 9.5% growth in ad spend around Asia in 2008, driven largely by growth in digital media and a booming China economy.

Speaking at the launch of iProspect, the Aegis-owned online search agency, in Hong Kong, Stahle said some 7.3% of that growth would be generated out of China.

And the growth, he said, would not be dependent on advertising spend surrounding the Beijing Olympics alone.

"Chinese people are becoming very connected online, the market is growing very fast," Stahle said. "China now has over 200 million online users."

To tap into this growth, Aegis will continue to rollout iProspect around the region. By the end of 2008, iProspect, part of Aegis Isobar digital network, will have eight regional offices.

The past week has seen iProspect launch in Singapore, Malaysia and Hong Kong with China, Taiwan, Phillippines, Korea, Japan and Indonesia to follow.

"At the end of next year, every market we operate in should be able to offer search," Stahle added.

"Search is so critical and for us it's critical to offer this service to our clients."

Heading into 2008, he said Aegis will be focused on integrating its various offerings, which could see the launch of Aegis companies such as its outdoor business Posterscope, Viseum and, potentially, its mobile media agency Marvelous Mobile.

"Our key focus is to continue to improve our ability to integrate our offering. We have 1,650 people around the region today and a better structure in place to offer that. We have a very flat structure and no silos reporting to head office. Nothing goes past me in Asia Pacific, which means it's very easy for us to integrate."

This year Aegis revenue for Asia Pacific was up 25% year-on-year, which Stahle said was organic growth. While he admitted that the company did face some initial problems in Indonesia and India, Aegis was growing around the region.

"You're always going to have markets that are tougher than others, but at the moment we have actually sorted that out and we're seeing good growth in all markets," he said.