XM Asia, others seek Thai partners

Meanwhile, Thai media firms are also happy to get access to market insights, data and resources from their business partners to deliver new services to existing clients and lure new ones. Aegis Media (Thailand), the country’s second-largest media agency, plans to acquire a stake in a local digital creative agency to strengthen its services in digital media. The deal is expected to be sealed this year.
Last year Chuo Senko (Thailand) set up a new subsidiary, Digital DNA, to offer digital and social marketing services that involve strategic and conceptual development of digital media campaigns.
The merger of Singapore-based XM Asia and Bangkok-based Thomas Idea this month was the latest example in this regard. Established in 1995, XM Asia has a presence in Singapore, Malaysia, Indonesia and Thailand. It is a JWT company and part of the WPP group, the world’s leading advertising agency by revenues.
Thomas Idea Interactive Agency was formed 18 years ago in Thailand.
Paul Soon, chief executive officer of XM Asia Pacific, said there was a lot of room to grow in Thailand. By 2015, Internet penetration is expected to reach 80 per cent, while by 2020 this figure will be at 90 per cent as a result of heavy investment into communication technology both for mobile and broadband Internet.
Soon said the Asean Economic Community (AEC), which will take effect in two years, would also attract more foreign direct investment into the region. Thailand also will benefit from this integration as a hub of the Asean mainland.
In a recent study by the University of the Thai Chamber of Commerce, Thailand was ranked in fourth position for foreign direct investment among Asean countries.
Based on the study for three-year investment in Asean, Singapore captured the first position with US$167 billion (Bt4.9 trillion) in FDI, followed by Indonesia’s $51.9 billion and Malaysia’s $31.1 billion. Thailand followed with $27.4 billion.
Soon said mergers and acquisitions with local digital agencies were a key strategy of WPP and JWT Asia Pacific to drive growth and expand their client base.
XM Asia Pacific is looking to team up with leading digital agencies in Vietnam, Hong Kong, South Korea and Australia after Thailand’s unit. By end of this year, the Bangkok office will contribute about 20 per cent of total income, while Singapore remains the largest contributor with 50 per cent of the group, Jakarta with 20 per cent and the rest from the Kuala Lumpur office.
Soon declined to comment on financial projections for this year and after the AEC takes full effect, but he said XM’s offices in Jakarta and Bangkok would become the largest contributors, with the Singapore headquarters expected to generate about 30 per cent of total income.
Uraiporn Chonsirirungsakul, CEO of Thomas Idea, said the synergy with XM Asia would save time in building a system and open more opportunities for generating revenue for customers. As well, the company is dedicated to helping its customers expand into Asean markets at a more rapid pace and with confidence.
Both companies will be able to share in-depth information such as customer insight data and to conveniently connect with each other, she said.
“We are confident that this cooperation with XM Asia will yield positive results, leading to at least 20-per-cent [financial] performance growth for Thomas Idea,” she said.