Ogilvy Group acquires Black Arc Advertising

11 Sep 2006

The Ogilvy Group China announced today it has agreed to acquire Black Arc Advertising, the country’s leading agency specializing in real estate-related advertising and promotions.

The announcement marks what is believed to be the first time a multinational marketing group has made investments aimed at the country’s high-growth property market. Property-related advertising spend in China was estimated at approximately US$1billion in 2005. (Source: Soufun)

“The property sector is one of the fastest-growing and most important in the Chinese economy. Our investment in Black Arc Advertising puts Ogilvy at the forefront of the property marketing space and allows us to participate in the significant marketing opportunities being created in this area,” said TB Song, Chairman of Ogilvy & Mather Greater China. “Black Arc was an obvious choice for a partner: not only is it the best agency in the property sector, it is also respected for its high-quality clients and proven leadership.”

Established in 1996, Black Arc is one of the best-known property-specialist agencies in China, focusing on building corporate property brands. Headquartered in the southern city of Shenzhen, Black Arc has built up an unmatched national network with offices in the major Chinese cities of Beijing, Hangzhou, Chengdu and Chongqing. The agency plans to open a Shanghai office later in 2007. Clients include China’s largest national property developers such as China Vanke Co., China OCT, Zhong Hai, Sunco China, and China Merchants. In the last decade Black Arc has established a standardized management model and methodologies that form the company’s core competitive edge.

Ms. Sasa Liu, President and Founder of Black Arc, commented, “The acquisition will help the two parties to integrate resources and deliver more significant performance with global resources, seamless systems and more comprehensive and professional services in property communications.”

Ms. Liu is an established expert in the field of property communications, and a published author of books on the subject of marketing property as brands.

O&M Asia Pacific Chairman Miles Young said, “The investment in Black Arc represents an important step forward in Ogilvy’s long-term strategy in China, as we expand both into specialized marketing as well as into 2nd and 3rd tier cities. It is a further reinforcement of our leadership position in China, and plays directly to our strength in 360o thinking and practice.”

Following the acquisition, which is subject to regulatory approval, Black Arc is being renamed Black Arc Ogilvy.