VML’s APAC bet: Nurturing a culture of growth & creativity
Asia Pacific has been an important region in the overall VML growth chart but more so in the year gone where markets such as China have played a significant role in contributing to VML’s global strategy and culture. In October last year, the agency made a key move in acquiring Chinese digital agency IM2.0 to create VML IM2.0, bringing senior digital leaders such as Chris Tung (CEO, VML IM2.0) into the VML fold. Large businesses such as Johnnie Walker and Crayola made their way to the newly formed entity. Earlier this year, the group showed further commitment to the market and acquired social media agency Teein, led by Co-Founder Roy Yan. Apart from new business wins, VML became one of the few digital agencies that have active operations in Southern China, with the launch of VML IM2.0 Guangzhou.
And this is just the China story for the agency. The Southeast Asia story is marked with similar developments of beefing up its senior team, adding new businesses such as adidas and INSEAD and of adding new offices alongside its sibling agency Y&R Advertising. The agency, that has traditionally been US-centric, held its global leadership meeting in Singapore earlier year, providing yet another testimony to the importance and growth of APAC.
It is no surprise hence when the agency’s Global Chief, Jon Cook, states that VML’s APAC performance has “exceeded all expectations”.
The growth & growth of China
China, India and the Southeast Asia continue to be areas of most interest to a large section of multinational advertisers. In addition to this, local businesses in these markets are also seeking globally benchmarked solutions. VML’s strategy for the region appears to factor this in, also fuelling the global aspirations of local businesses such as India’s Mahindra & Mahindra.
China, in that sense, is an apt reflection of VML’s thought process.
Acquisitions were key to VML’s growth in China last year. “We were optimistic but we had initial apprehensions on how China would shape up. Today, with Chris, Roy and the team, China is making an impact in different ways. The organic growth itself, and that they are creating unique and impactful work,” Mr Cook observed.
The bigger and most important impact however is on the culture. Having spent nearly two decades at the company, Mr Cook, by his own admission, and his senior leadership team are very protective of the VML culture, always looking for ways to enrich and evolve that culture. “It is about sharing vision and values. When we first met Chris and Roy, their first question they asked was how the deal would impact their staff. That is exactly our kind of thinking. Whether it is IM2.0 or Teein, they have integrated very well from a cultural standpoint. In our recent global meeting, they brought a great perspective to what our course of action should be,” Mr Cook remarked.
A region of different strengths
If culture or sharing vision and values is one area, capability and geography, are other areas that decide VML’s acquisition strategy. For instance, Teein was acquired to further augment VML China’s social media offering. A point worth noting that Mr Cook makes in his conversation with DMA is that unlike various other markets, where digital conversations are just talk, China is about action. “Social, mobile, ecommerce – China has a multilayered economy, which essentially means the opportunity to do some great work,” Mr Cook observed.
The other market that has bolstered VML’s creative reputation, another area of priority on the VML agenda, is Australia. “Second to the US, Sydney is the most creatively awarded office in all of VML. For us furthering our creative image is also important. That is one area that we expect other markets to contribute to. Also, the manner in which we expanded our North America relationship with the likes of Kelloggs in Australia shows the growth of our network, and that is something we want to be able do more,” Mr Cook pointed out.
He adds that work for Colgate globally is another prime example of intra-network collaboration, not just across VML but within the Y&R network.
The agency chose Singapore as its hub for Southeast Asia, which helped in augmenting its operations in the market. In all, for Mr Cook, while VML is meeting its targets for this year, 2014 has also upped its expectations for 2015.
The road ahead – of expertise & expansion
VML’s 2015 strategy has some broad contours that will manifest in the agency’s next set of actions. Not just from APAC but from a global viewpoint, VML looks to deepen its focus on areas such as CRM (customer relationship management), ecommerce, and the intersection of shopper and retail marketing and digital.
“We are already doing this at VML but these are areas of fastest growth for our clients. In the near future, the industry will ask for more sophisticated solutions and approach to these segments, and hence we will continue to make big investments in these areas,” Mr Cook divulged.
The year ahead would still be about a two-pronged growth from organic routes and acquisitions. In addition to further entrenching itself into newer APAC markets, VML also looks to expand in Latin America with a Mexico offering.
