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New firm looks to capture digital advertising market

Jump Digital founder Jed Marcaida (left) and Dynamo Innovative Digital Advertising chairman Anthony Galliano are partnering to form new digital agency Jump Digital (Cambodia). Photo supplied
Jump Digital founder Jed Marcaida (left) and Dynamo Innovative Digital Advertising chairman Anthony Galliano are partnering to form new digital agency Jump Digital (Cambodia). Photo supplied

New firm looks to capture digital advertising market

Philippines-based Jump Digital Asia has formed a new joint venture with Cambodia’s Dynamo Innovative Digital Advertising in a bid to become the Kingdom’s first fully digital advertising agency backed by a regional network that includes branches in Singapore, Indonesia and Myanmar.

The new company, Jump Digital (Cambodia) Co Ltd, aims to muscle its way into the country’s already crowded advertising market by offering a one-stop shop for all digital branding solutions, including web design, mobile app development, digital campaigns and video and animation production.

Jed Marcaida, founder and chairman of Jump Digital, said the company’s entry into Cambodia is part of an expansion strategy aimed at building a presence in all 10 ASEAN member states.

“With our acquisition of 51 per cent of Dynamo and forming Jump Digital Cambodia we are halfway through our goal with five countries now where we have local offices,” he said, adding that a regional network allows the company to bring new clients into the Cambodian market.

While Marcaida said he was aware of Cambodia’s competitive advertising market, he expects the company will be able to contend with the existing heavyweights.

“One of our main selling points is that we are a true full-service digital agency,” he said, adding that the company was backed with 120 full-time staff. “We looked to expand here because we believe in the potential of Cambodia and see a fast-growing economy that will attract more investment in the future.”

Anthony Galliano, chairman of Dynamo Innovative Digital Advertising – who will also chair the new joint venture – said the combined resources would allow the company to attract a higher-end client base with innovative marketing options.

“With our local capabilities and our staff in the Philippines, we will be able to reach new clients while having the capability to outsource to each other,” he said, adding the partnership was set to expand quickly with a timeline of launching operations in Laos by the end of the year.

“From my point of view, Dynamo’s organic growth was too slow and we needed an outside partner with experience to expand,” he said.

Neither Marcaida or Galliano would divulge how much capital was being sunk into the new company.

Julian Rake, managing director of public relations firm Quantum Communications, said that while size and scale is a key consideration for any company looking to grow in a competitive market, there is a downside to working with larger firms.

“The flip side to that is that a larger service provider can often end up commoditising their clients and not giving the in-depth and personal service that many clients appreciate from smaller, local partners,” he said.

While Rake said the new company would have an advantage by being able to offer an array of integrated services, he noted there was still room in the industry for specialised agencies that focus on a certain set of expertise.

Nevertheless, “if a [company] can find the perfect blend of major regional presence with a true understanding of the local market, then it should be a good starting point”, he said.

Lorena Banares, assistant dean of communication and media arts at Pannasastra University, said as a fully digital venture, the new company should have little difficulty finding new clients.

“The problem with companies like Riverorchid or Phibious, who focus on traditional advertising, is that their digital teams are only made up of three to four people,” she said. “It is very rare to find a fully digital company and advertisers are willing to pay agencies that can create viral videos and develop mobile advertising.”

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