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Published on September 20, 2007

McCann Worldgroup (Thailand) CEO Mark Ingrouille said the relocation was in line with the company's vision of Thailand as a promising future market, particularly in the area of advertising and communications, despite the country's political uncertainty and economic slowdown.

Ingrouille said that as the regional headquarters, the Bangkok office would make all significant management-level decisions and would also oversee McCann's seven offices within the region.

McCann's Singapore office will maintain its current operations and there will be no downsizing.

He said operating costs and the amount of billings were not the main reasons for relocating the regional headquarters to Bangkok.

The Thai office does not contribute the highest growth in terms of billings. The front runner is McCann's operation in the Philippines.

"Our main reason is that Thailand is an emerging market where many things have improved significantly, including transportation systems, English capability and skills. Significantly, Thai people have good creativity. Many creative works from Thailand have shown much more added value than those from other countries," he said.

McCann entered Thailand in 1965, one year after its Singapore office was made the company's regional headquarters. Its business in Thailand has doubled over the past four years.

In making the Bangkok office its regional headquarters, the company has invested Bt180 million to set up a new office building, which will have its grand opening today. The building will house eight affiliated companies.

McCann has 37 corporate clients in Thailand. New clients this year include Hundred Pipers, Goodyear tyres and Ivy fruit juices.

The company generated US$165 million (Bt5.65 billion) in billings last year, 21 per cent up from 2005. It is aiming at 18.5-per-cent growth this year, despite the slowdown in Thailand's advertising industry.

The local advertising industry is expected to grow only 2.7 per cent, declining from 3.5 per cent last year. McCann's growth will be driven by its consultant services, particularly in digital media as well as experiential and event marketing, which has shown good expansion.

Ingrouille said modern consumers were consuming more on digital devices, particularly mobile phones and Internet connections.

The company plans to increase its staff, particularly by hiring Internet and digital specialists who will work for digital media, from 14 people last year to 32 this year.

It also set up a Healthcare Department last year, hiring two full-time nutritionists to provide consultancy services to corporate customers in the nutrition business. It also established a "retail momentum" department earlier this year to study consumer behaviour in supermarkets and retail shops, so as to provide further consulting services.

Ingrouille said the ideas would be applied to McCann's operations in China, India and Singapore next year.

He added that the enforcement of new regulations for advertising, and regulations that were still in the process of trial, did not affect McCann because it has its own code of conduct in these specific areas.

Nitida Asawanipont

 The Nation