Top ad firm Omnicom Group to set up joint venture in China
Updated: 2006-06-14 14:29
Omnicom Group, the world's largest advertising and communications holding
company, is teaming up with CITIC Guo'an Group, one of the top 10 advertising
companies in China.
The two partners will set up a joint venture advertising
agency, DDB Guo'an Communications Beijing Co. Ltd., scheduled to open on July 3,
sources with Omnigroup said Tuesday.
The agency will be created through
the merger of DDB China under the Omnicom Group and Beijing Guo'an Advertising
Corp, a subsidiary of CITIC Guo'an. The US-based Omnicom will hold 52 percent of
the new venture, while CITIC Guo'an will own 48 percent.
John Wren,
president and CEO of Omnicom, said that the partnership reflects the approach
his company has taken in every major market which is to grow by co-operating
with the best local players.
According to Wren, Omnicom's business in
China currently accounts for only a small portion of its global revenue, but the
firm believes the country is a key strategic market for its future growth.
Yan Gang, executive vice-chairman of CITIC Guo'an and chairman of
Beijing Guo'an, will be chairman of the new venture. He said the company is
ready to share its resources such as a cable TV network and sports advertising
channels with Omnicom in further co-operation.
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