Dive Brief:
- Ad holding company WPP's VML has acquired Chinese digital agency IM2.0.
- The move is part of a growing trend of U.S. ad companies looking to break into the Chinese digital market.
- The easiest way for U.S. firms to break into the China marketplace is by purchasing existing Chinese digital agencies. These agencies already have an established understanding of the complicated digital landscape of China.
Dive Insight:
Without the acquisition of a Chinese company, it would be nearly impossible to break into the digital marketing in China. In a country where the government blocks Facebook, Twitter, and YouTube, having a native understanding of the culture is critical to any kind of success in the country. Likely, we will see more of these types of acquisitions in the near future as brands realize the potential of the world most populated country.