WPP’s Y&R Advertising has agreed to acquire a majority stake in a Mongolian advertising and research agency owned by MCS Holding LLC, one of the country’s largest conglomerates.
The agency is being rebranded Y&R Mongolia and Y&R is partnering with sibling research firm TNS, given that the acquired entity also has an extensive research operation. According to Y&R it is the country’s first foreign-controlled agency.
Y&R Mongolia will continue to be led by Managing Director Tuul Purevsuren, reporting to Y&R Asia President Matthew Godfrey.
MCS established its advertising and research arm in 2008 and it has a range of services including advertising development, events management, and consumer and retail market research services. Its existing clients include MCS Asia Pacific Brewery, Herbalife, JTI and Dell.
Y&R global CEO David Sable said of the deal: “The formation of Y&R Mongolia will make Y&R the most expansive network in Asia, with coverage across North, South and Southeast Asia, including Pakistan, Sri Lanka and Myanmar. We are a global boutique: Strong local offices with deep roots in the market offer our clients the best of both worlds — the local relevance they need, along with the global power of a network.”
Chris Riquier, CEO of TNS’ Asia-Pacific region said: “Mongolia presents a strong opportunity for our clients, who are keen to understand more about their consumers. We were the first international research consultancy in many markets across the region, including Myanmar in 2013, and we are pleased to partner with Y&R to be first to establish a presence in Mongolia.”
One of the world’s fastest-growing economies, Mongolia’s GDP is forecast to grow at 9.5% in 2014, and 10% in 2015 according to research from the Asian Development Bank. Mongolia was named among Citigroup’s ‘3G’ countries, the so-called “Global Growth Generators” with the most promising (per capita) growth prospects until 2050.