Coming within days of each other, Omnicom's purchase of Unisono Fieldmarketing and WPP's acquisition of seven-year-old Always through its ad agency JWT, represent the first major investment in the space by the multinational groups since Euro RSCG bought Field Force in 1999.
Both groups have acquired majority stakes -- 65 per cent in JWT's case -- giving them financial oversight of businesses in a sector that is forecast to deliver greater revenue than above-the-line within five years, if not sooner.
The two China companies have worked with a roster of blue-chip brands -- such as Kraft, Unilever, Wyeth, Michelin and Sony at Always, and Gilette, Mars, Pepsi, Visa and Reckitt Benckiser at Unisono, which will operate under Omnicom's DAS group. The new owners believe they can contribute with best practice learnings, open the door to global client opportunities and sharpen the strategic offer of the field agencies. "China is a key strategic market for Omnicom and (field marketing) is a vitally important sector for our business and has been for Omnicom around the world for many years," said Michael Birkin, Omnicom Group vice-chairman and CEO for Asia-Pacific. "Field marketing is not an area we regard as a nice add-on... we can't express more strongly how deep-rooted we are in this business," Birkin said, pointing to similar, long-established businesses it operates in Europe through CMP and Market Star in the US.
JWT's North Asia area director Tom Doctoroff said the acquisition was part of an overall strategy to work with "like-minded professionals" in diversifying its service offer, an initiative it launched two years ago with stakes in a local agency group New Sun and design start-up Ignite as well as bolstering RMG Connect with Bates' XM operation and a strategic alliance with WPP PR sibling Cohn & Wolfe. With JWT taking a majority stake in Always, Doctoroff said the deal was painstakingly constructed to ensure Always founder Cai Hua was properly incentivised to develop the business.
Industry sources believe one other holding group is about to sign on the dotted line to acquire a local field marketing firm. "We met 12 local field agencies through the Visa pitch (organised late last year) -- honestly, some of them are damn good," said Greg Paull, principal of review consultancy R3.
