• by Joe Mandese  @mp_joemandese, June 9, 2006

Omnicom Group Thursday announced a strategic partnership with China's influential CITIC Guoan Group to jointly market their advertising and marketing services in China. The move comes as other big western advertising companies, especially London-based WPP Group, are vying for stronger footholds in China's burgeoning advertising marketplace.

CITIC Guoan is a division of China CITIC Group, which was created in 1978 by Deng Xiaoping. The CITIC Group played an integral role in China's open door policy and has become one of the most influential business entities in China, handling information industry operations including cable TV network investment and management, telecom, satellite communications, as well as all advertising, media, sports and cultural businesses.

The first phase of the partnership will be the formation of an advertising agency, DDB Guoan Communications Beijing Co., Ltd., which will be created by the merger of DDB China and Beijing Guoan Advertising Corp. Yan Gang will become chairman of DDB Guoan. Dick van Motman, President and CEO of DDB China, will be CEO of DDB Guoan.

The agency will be headquartered in Beijing, with offices in Shanghai and Guangzhou. DDB China currently services clients such as Philips, Johnson & Johnson and PepsiCo, while Beijing Guoan Advertising's clients comprise brands such as China First Auto Works, China Unicom and CITIC Bank. DDB Guoan will be one of the biggest ad agencies in China when it opens its doors for business July 3.