MediaMath: APAC Brands & Agencies Should Leverage Each Other's Capabilities; Grey Group Acquires Thailand's nudeJEH
In this weekly segment, ExchangeWire sums up key industry updates on ad tech from around the Asia-Pacific region – and in this edition: MediaMath: Brands, agencies should leverage each other's capabilities; Grey Group acquires Thailand's nudeJEH; Droga5 shutters Sydney office; Leo Burnett launches experiential unit in India; and ZenithOptimedia appoints new leaderships in Vietnam, Indonesia.
MediaMath: APAC brands, agencies should leverage each other's capabilities
While companies mull over whether to build programmatic capabilities in-house or outsource, the answer may not be an either-or ultimatum.
According to Erich Wasserman, MediaMath's co-founder and chief revenue officer, it is not necessarily the case that one model is better than the other. "Certainly, that isn't the way the market is going", he told ExchangeWire.
"Some of the most impactful conversations I've had with brands and agencies are how to leverage the capabilities of each other in the right way, and that's a management imperative – to take advantage of the opportunities [and] strengths of each stakeholder", Wasserman said.
"Certainly there are organisations that have very little relationship with agencies or market players […] but there are big brands that do, and agencies can bring more efficiencies to the brand than what they can themselves. The mature companies would want to take stock of their strengths and manage and leverage that as much as possible", he said.
He added that this did not equate to a wakeup call for agencies, noting that both brands and agencies could operate together "in peaceful harmony".
While he acknowledged there were questions about transparency and control, these were no different today than what they were before. "I think the scale of the digital media and programmatic opportunities [today] have raised the same questions, just using different words. Clients should expect transparency from their agency and all the rights that come with it", Wasserman said.
Grey Group acquires Thailand's nudeJEH
WPP's wholly-owned subsidiary Grey Group has announced plans to acquire Thai digital ad agency, nudeJEH.
No financial details were available regarding the deal, which will see the Thai outfit join Grey Group Thailand and renamed, GREYnJUnited.
nudeJEH itself was the result of a 2011 merger between Nude Communications and JEH United, and also operates digital agency Nine Dotz. According to WPP, nudeJEH and Nine Dotz reported a combined revenue of ฿239m [baht] (USD$6.6m) for the year ended 31 December, 2014.
With a headcount of more than 60, nudeJEH boasts a clientele that includes Bangkok Airways, Bio Consumer, and Tesco Lotus.
Droga5 shutters Sydney office
The New York-headquartered ad agency says it has closed its Sydney office and is exploring plans to expand into China.
It noted that while the Australian outfit had a positive start, it "floundered" in recent years and would officially close before the end of 2015, reported Campaign Brief.
Drogba5's creative chairman and founder David Droga said in the report: "We see little value in continuing to operate in this market with an office that, sadly, no longer consistently represents the Droga5 brand.
"Despite world-class local management and many talented individuals working hard, the Sydney office has floundered over the past few years. Some of it was self-inflicted, some of it bad luck, and some of it just the befuddling local advertising market", Droga said.
Despite the closure, the agency's global CEO Sarah Thompson said it was still seeing growth in the US and was focused on building a team in Europe, as well as exploring the possibility of launching in China.
It recently hired Bill Scott as CEO of its London operations.
Leo Burnett launches experiential unit in India
The marketing agency has launched an experiential unit aimed at helping brands engage consumers in India's rural community.
Leo Burnett Experience comprises 40 employees and aims to address a "black hole" in experiential marketing in the country, the agency said in a statement.
Headed by executive vice president Vandana Verma, the new unit will look to support existing clients including Vodafone and McDonald reach audience in rural India.
"None of the existing agencies seem to effectively manage crisis and identify likely risks that affect ROI", Verma said, adding that Leo Burnett Experience was targeting to hit an above-average market growth of 25%. "As for the most exciting opportunity, it is the rural markets where brands are increasingly demanding strategy-based experiential services – a big gap in the industry that we will address."
ZenithOptimedia appoints new leaderships in Vietnam, Indonesia
The media agency has relocated Francois Goddet, who was CEO of its Belgium operations, to Vietnam where he replaces Deboo Mohanty, formerly CEO of Vivaki, which is part of the Publicis Groupe that also encompasses Starcom MediaVest Group and ZenithOptimedia.
A French executive who has been with the network for 17 years, Goddet was appointed its Belgium chief in 2012.
ZenithOptimedia Southeast Asia CEO Gareth Mulryan said: "Francois comes over from Europe with knowledge and experience of our Vivaki business and products that will be fantastic for our businesses in Vietnam. Having someone of his calibre leading our team in Vietnam is very exciting and he will bring great value to our clients in Vietnam and energy to our teams."
The ad agency also announced the appointment of Ernita Ariestanty as CEO of its Indonesian operations, joining ZenithOptimedia from Dentsu Aegis Network, where she was last CEO of Carat and Vizeum.
With more than 21 years experience in the local ad industry, Ariestanty had held positions in several global brands including Unilever, P&G, and Coca-Cola.
Mulryan said: "Her depth and breadth of expertise and impressive knowledge of the Indonesian media marketplace is a brilliant addition to our offering in Indonesia."
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