JWT forecasts strong growth
Marketing billings up on rebound in advertising spending
JWT Bangkok expects its marketing communications billings this year to bounce back by 8 per cent thanks to the continued upswing in advertising spending on television and digital media and the opening of Degree, a standalone design company.
CEO Bob Hekkelman said yesterday that although the agency experienced sluggish growth of 3 per cent last year due to the devastating floods in the fourth quarter, in first four months of this year overall advertising spending has been brisk.
TV retains its leading role with 61 per cent of ad spending and is expected to see an increase. Spending via digital media has surged by more than 30 per cent, but its share remains limited at only 0.4 per cent.
This trend would benefit JWT’s diverse business units including public relations, digital, advertising and creative and design services. Particularly for digital services, the firm underlines investing in staff skills and in technology.
After observing increasing demand for design for branding over the past five years, the firm decided to establish its own design company developed from its design division.
Degree now employs 18 staff with various backgrounds, such as architecture, fashion, product design, graphics, event organisation and traditional advertising.
“This is the first standalone design centre in Southeast Asia. It will serve both JWT’s network and independent clients in the region,” Hekkelman added.
Hans Mueller, executive creative director of Degree, said that by end of this year, the firm expects to contribute 7 per cent of the group’s revenue, up 30 per cent from last year’s 5 per cent. It has 25 key accounts, of which 70 per cent are local companies and the rest are from JWT’s network outside the country.
“The company hopes to see even contributions from domestic and regional markets in the near future,” he said.
Business director Karl Kongkarm said Degree’s designers have worked on dozens of projects, including a retail outlet for Epson Singapore, packaging for Kleenex Thailand and Navy Cut India, an annual report for TMB Bank, visual identity studies for the Museum of Modern Art in Calcutta, Vietnam Post and various property developments in Thailand. They’ve also created innovative print and out-of-home ads for clients like Converse and Unilever.
