WPP’s wholly owned operating company Y&R Advertising is all set to acquire the creative and research agency of MCS Holding LLC, one of Mongolia’s largest conglomerates. The deal marks WPP’s first acquisition in Mongolia, with the group now operating in 111 countries. In addition, Y&R becomes the first global ad network to establish a majority-owned agency office in the country.
Established in 2008, the creative and research agency provides services including advertising development and events management as well as consumer and retail market research services. Its clients include MCS Asia Pacific Brewery, Dell, Herbalife, and JTI. The agency has approximately 45 people.
Following the acquisition, the agency will be renamed Y&R Mongolia. “The formation of Y&R Mongolia will make Y&R the most expansive network in Asia, with coverage across North, South and Southeast Asia, including Pakistan, Sri Lanka and Myanmar. We are a global boutique: Strong local offices with deep roots in the market offer our clients the best of both worlds — the local relevance they need, along with the global power of a network,” commented Y&R Global CEO, David Sable.
Y&R Mongolia will continue to be headed up by Managing Director Tuul Purevsuren, reporting to Y&R Asia President Matthew Godfrey.
The agency’s market research business will be affiliated to WPP’s global research consultancy TNS, which will be the first international research consultancy to establish a presence in Mongolia. “Mongolia presents a strong opportunity for our clients, who are keen to understand more about their consumers. We were the first international research consultancy in many markets across the region, including Myanmar in 2013, and we are pleased to partner with Y&R to be first to establish a presence in Mongolia,” added TNS CEO APAC, Chris Riquier.
One of the world’s fastest growing economies, Mongolia is forecast to grow at 9.5% in 2014, and 10 per cent in 2015, according to the Asian Development Bank.
Gankhuyag A., Managing Director of MCS Holding stated, “Partnering with Y&R is a step forward to achieve our mission to introduce world standards in our home country. MCS has pioneered in introducing global brands in Mongolia successfully in the industries we operate. MCS’ local knowledge and engagement combined with Y&R’s industry expertise and global network will create a powerful synergy.”
This acquisition marks a further step towards WPP’s declared goal of developing its networks in fast-growth markets and sectors. In the Asia Pacific region, WPP companies (including associates) generate revenues of USD 5 billion and employ almost 50,000 people. WPP is targeting at least 40-45 per cent of revenues to come from each of fast-growth markets and new media over the next five years.