ASIA-PACIFIC WPP networks BatesAsia and David have confirmed that the duo are considering mergers in several Asian markets, after their Indian operations were brought together to create Bates David Enterprise.
In a related move, David regional chief executive officer Digby Richards has shifted over to Bates to become regional chief operating officer, where he will be reporting to BatesAsia president Jeffrey Yu.
While Bates and David will remain as standalone operations in both Hong Kong and Singapore, it is believed that other markets will follow the example of Thailand, where David was absorbed into Bates in late 2005.
"We all felt that India made the most sense, in the initial stage, so we focused on this important market first,"said Yu. "Over time, other markets may see the two brands coming together - only if it benefits our clients and our staff, by way of better resources and opportunities."
Both Yu and Richards denied, however, that the moves would see further consolidation of Bates and David within the Ogilvy Group. "I report to Sir Martin Sorrell,"stated Yu. "I do cooperate with (Ogilvy regional chairman) Miles Young, but I don't report to Miles."
Yu also dismissed speculation that Bates country heads would report into Ogilvy country management.
"It is more of a cooperation,"said Yu. "But we are fiercely independent of Ogilvy."
"David numbers are independent numbers that report directly into WPP,"added Richards, who noted that David will not seek a regional head replacement after his departure. "David will report directly into WPP. David has been a good performer - but it has lacked critical mass. However, all local markets are very profitable."
In India, Bates David Enterprise will be headed by CEO Subhash Kamath who also takes on a joint managing director role with ECD and David India chairman Josy Paul, who is also expected to assume a co-regional CD position for BatesAsia in due course.
BatesAsia also confirmed the acquisition of Chengdu advertising agency Apex, with Yu noting that a South Asian activation purchase would follow soon.
See Leader, page 20
