WPP takes stakes in two more Chinese agencies

LONDON – WPP Group has bought into two more agencies in China, one of the ad giant's fastest-growing markets, accounting for almost a third of the company's total Asia Pacific business.

WPP's pooled media buying unit GroupM has acquired 49% of Beijing Hua Yang Lian Zhong Advertising, a media investment management agency that specialises in online and interactive media.

In Hong Kong, its Bates Asia ad agency has bought a 75% stake in independent marketing communications consultancy Beyond Communications.

Founded in 1994 and based in Beijing, with a branch in Shanghai, HYLZ has 99 staff and had revenues of $2.6m last year. Its clients include China Mobile, Moto, BMW, AMD and eBay.

Founded in 1995, Beyond employs 11 people and had revenues of $570,000 in 2005. Its clients include Adidas, Kimberly Clark, Sony and Procter & Gamble.

The acquisitions follow two earlier purchases it made this year, when it bought promotional and merchandising firm Always in Shanghai and South China Market Research.

WPP already has revenues of over $400m in Greater China and Sir Martin Sorrell, the WPP Group chief executive, has said that China is a key focus for the group, particularly looking forward to 2008 and the Beijing Olympics.

"The Olympic Games in Beijing is not just a sporting occasion, it's a political, social and economic occasion and will mark, in our view, the year the Chinese economy becomes the second-largest advertising market in the world," Sorrell said.

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