Ogilvy reinforces China offer with Black Arc

The Ogilvy Group China has acquired a 60 per cent stake in Black Arc Advertising, a mainland agency specialising in real estate advertising and promotion. The acquisition, which seeks to strengthen the agency's diversified marketing services offer in the mainland, comes on the heels of the WPP agency renewing its joint-venture partnership with Shanghai Advertising for another 15 years. Ogilvy's Black Arc deal is believed to mark the first time that a multinational marketing group has made investments to tap the mainland's high-growth property market. "Property is emerging in both China and India. In China, the advertising sector is growing very fast with the market seeing 26 per cent growth each year. We see enormous potential here," said Miles Young, chairman of Ogilvy & Mather Asia Pacific. "(Black Arc) is expanding into second- and third-tier cities and we will be well positioned. You can expect to see WPP continue to invest in non-traditional areas. Digital, in particular, is an area of interest." Property-related adspend in China was estimated at US$1 billion last year. However, analysts have warned of a property bubble in the mainland as prices see sharp rises and sales of new properties start to stagnate. Black Arc, which is headquartered in Shenzhen with a total of 196 staff in China, includes China Vanke, China OCT, Zhong Hai, Sunco China, and China Merchants in its client portfolio. Meanwhile, Ogilvy's Shanghai Advertising agreement, which had been scheduled to expire next month, has now been extended to 2021, with the WPP agency increasing its share in the joint-venture from 51 to 75 per cent. "It was sensible to increase our stake to reflect the dynamics of the JV," added Young.

by | 09/20/2006

The Ogilvy Group China has acquired a 60 per cent stake in Black Arc Advertising, a mainland agency specialising in real estate advertising and promotion.

The acquisition, which seeks to strengthen the agency's diversified marketing services offer in the mainland, comes on the heels of the WPP agency renewing its joint-venture partnership with Shanghai Advertising for another 15 years.

Ogilvy's Black Arc deal is believed to mark the first time that a multinational marketing group has made investments to tap the mainland's high-growth property market. "Property is emerging in both China and India. In China, the advertising sector is growing very fast with the market seeing 26 per cent growth each year. We see enormous potential here," said Miles Young, chairman of Ogilvy & Mather Asia Pacific.

"(Black Arc) is expanding into second- and third-tier cities and we will be well positioned. You can expect to see WPP continue to invest in non-traditional areas. Digital, in particular, is an area of interest."

Property-related adspend in China was estimated at US$1 billion last year. However, analysts have warned of a property bubble in the mainland as prices see sharp rises and sales of new properties start to stagnate.

Black Arc, which is headquartered in Shenzhen with a total of 196 staff in China, includes China Vanke, China OCT, Zhong Hai, Sunco China, and China Merchants in its client portfolio.

Meanwhile, Ogilvy's Shanghai Advertising agreement, which had been scheduled to expire next month, has now been extended to 2021, with the WPP agency increasing its share in the joint-venture from 51 to 75 per cent. "It was sensible to increase our stake to reflect the dynamics of the JV," added Young.