Cheil Worldwide has signed an investment agreement with South Korean digital agency Hivelab in a bid to broaden its digital business.
Cheil did not share the financial terms of the deal, but said that it would allow the agency to offer Hivelab's digital services to its clients. It will use Hivelab's expertise to pursue more digitally-focused services such as exhibitions, events, and retail marketing. In addition, the two parties will collaborate in new business development—such as advancing ecommerce marketing for global clients.
Founded in 2012, Hivelab offers full-service digital marketing capabilities from digital platform building, digital content creation to brand marketing. The agency has around 250 staff—86% of which are technical professionals—covering designers, developers and UI/UX planners. Hivelab has operations in South Korea and Vietnam.
Hivelab serves around 260 clients globally, including NHN, Netmarble, and Kakao Games. The company recorded sales of KRW 18 billion (US$15.6 million) in 2020, and the company claims its annual average sales growth rate (CAGR) over the past four years has been approximately 24%.
Cheil Worldwide and Hivelab have collaborated since 2015, working on projects such as Samsung Electronics’ website.
A Cheil Worldwide representative said: "Through this investment, we will offer differentiated digital marketing services by forging collaboration with Hivelab, and continue to pursue new strategic investment opportunities to broaden our digital business."
See how Cheil Worldwide performed in 2020 in its Agency Report Card.