Japan's Dentsu Asia acquires Brandscape
Tokyo-based Dentsu Network Asia is taking over Brandscape, a Thai brand-consulting agency, to expand its portfolio and client base in the Kingdom.
The transaction will be made through Dentsu’s subsidiary Dentsu Plus for an undisclosed figure.
Founded by Dolchai Boonyara-tavej in 2004, Brandscape now serves many big clients from various industries such as CAT Telecom, the Bank of Thailand, Thanachart Bank and Siam Cement Group. Dolchai becomes chairman of Dentsu Plus Thailand.
The acquisitions made by international advertising and brand-communication agencies reflect the intense competition in the media and advertising industry here, while local firms in this field appear to be on edge, so they are seeking international business partners either via joint ventures or mergers for business sustainability. The high competition partly results from the rapid changes in the media landscape and consumer behaviour in line with more sophisticated demand from both international and local clients.
Asean’s economic integration in 2015 will also open more doors for new players, creating fierce competition in this industry.
Takemi Furuta, president and chief executive officer of Dentsu Plus Thailand, said yesterday that all 20 staff of Brandscape would work with the company to strengthen it as a fully integrated communications agency. Dentsu Plus was formed in 2003.
Pongsak Sanitwongse Na Ayu-dhaya, chief operating officer of Dentsu Plus Thailand, said that after this merger, the company expected growth of 30-40 per cent in revenue to Bt1 billion this year.
Following this synergy, the company says it will be well prepared for the opening of the Asean Economic Community in less than two years.
Brandscape was not the only target of international advertising firms.
In March, Singapore-based XM Asia acquired an interest in Bangkok-based Thomas Idea. Established in 1995, XM Asia has a presence in Singapore, Malaysia, Indonesia and now Thailand.
Thomas Idea Interactive Agency was formed 18 years ago in Thailand.
XM Asia 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.
Under such mergers, the local partner also gains benefits from international firms. For example, they can share in-depth information such as customer-insight data.
Aegis Media (Thailand), the country’s second-largest media agency, is also eyeing a stake in a local digital creative agency to strengthen its services in digital media.
The deal is expected to be sealed this year.
