The deal will open the doors for WPP's media specialists such as MindShare and MEC to offer creative services for what is thought to be the first time. Quinn Taw, chief strategy officer, GroupM China, said the development reflects the evolving demands of online marketing in China. "It's what our clients want, a much tighter integration online with creative," he said. "What (HYLZ) brings to the party is the most awarded online agency in China."
The addition of creative to WPP's online media resource could be replicated in other markets depending on how well it works in China, Taw added. WPP has taken a 49 per cent share in a joint company set up with HYLZ, which will now be called GroupM Interaction. The new venture will collaborate on areas handled by GroupM such as media buying and back office functions, while continuing to serve its clients independently to avoid client conflict. HYLZ claims just under 10 per cent of China's online ad market, servicing clients such as Buick and China Mobile. Founded in Beijing in 1996, it has since opened offices in Shanghai and Guangzhou.
The deal marks a formalisation of WPP's relationship with HYLZ after the two first started working together three years ago on business for mutual clients.
In a separate move, WPP has also bolstered operations in Hong Kong by buying a 75 per cent stake in PR and marketing consultancy Beyond Communications through Bates Asia. Beyond counts adidas, Mead Johnson, Sony and Procter & Gamble among its clients.
