Publicis Expands Modem In China, Muscles Into 'Vast Interior'
Publicis Groupe this morning announced another in a series of agency acquisitions in China, beefing up its presence in what big agency holding companies deem a high-growth and strategically imperative market for the ad industry.
Publicis did not disclose terms of the deal, but said it acquired 100% of Gomye, an eight-year-old, full-service digital shop with offices in Beijing, Chengdu and Chongqing, and that the agency would be re-branded Publicis Modem Beijing and Publicis Modem Chengdu.
Gomye’s staff of 51 will be folded into the existing Publicis local team, and its CEO Alan Yang will become managing director of Publicis Modem Beijing and Publicis Modem Chengdu, and will report to the CEO of Publicis Beijing.
The deal follows Publicis’ acquisition of Shanghai agency Wangfan earlier this month, and a series of earlier investments in agencies in Beijing, Shanghai and Guangzhou, and is part of a plan to focus on developing China’s vast interior region. Chengdu, the capital city of Sichuan province, and its sister city Chongqing are “among the economic, transportation and communications hubs designated for massive investment and rapid growth,” Publicis said in a statement.
Gomye's clients include Vanke Real Estate (China's largest residential developer), movie and media company Huayi Brothers Media Group, liquor company Wuliangye Yibin, China Mobile and China Telecom.
According to Publicis’ ZenithOptimedia unit, ad expenditures rose 25.3% in China in 2010.