VGI Strengthens iClick Interactive Partnership with Strategic Investment
Following an announcement to form a joint venture on April 24, 2019, between iClick Interactive Asia Group Limited, (“iClick”) (NASDAQ: ICLK), an independent online marketing and enterprise data solutions provider in China, and VGI Global Media Plc (“VGI”) (VGI.BKK), Thailand’s number one online to offline (O2O) solutions provider across advertising, payment and logistics platforms, VGI made a strategic share purchase in iClick to expand the ongoing collaboration between the two companies. This move shows the confidence of the two parties in the synergies that they can bring and the market opportunities that they are looking to take advantage of.
Sammy Hsieh, Co-founder and CEO of iClick said, “The potential for iClick and VGI has become more apparent as our strategic planning has continued. VGI provides market leading solutions and contacts and together we will be able to offer brands in Southeast Asia a new level of market access to the wealth of opportunities in China. The decision taken by VGI to make this investment on top of the recent establishment of the joint venture is a huge vote of its confidence in our model and approach as well as indicating the willing momentum behind our partnership.”
VGI is a unique market leader in Thailand providing fully integrated O2O solutions. VGI has built the largest and most captive out-of-home media platform with over THB 7,000 million (USD 225 million1) inventory on hand covering nationwide network. Its micro-payment platform, Rabbit Group, has more than 12 million users and has a number of major partners including VGI’s parent company BTS Group Holdings Plc (“BTSG”) (BTS.BKK).
BTSG is the main mass-transit services provider in Thailand and a constituent member of the SET50 “Blue-chip” Index. The average daily ridership of its mass-transit services is close to 700,000 trips. The company complements its transportation services with media, property and services businesses. VGI is granted the exclusive long-term contracts to manage advertising space on the BTS SkyTrain Network as well as future lines secured by BTSG.
The areas that the joint venture between iClick and VGI intend to work on are:
According to recent research2, internet users in Thailand spend more than five hours per day using the mobile internet, the highest of any country, demonstrating the need for marketers to have compelling mobile strategies in the country. Additionally, Thailand remains one of the most popular overseas destinations for Chinese tourists. According to the Ministry of Tourism and Sports in Thailand, in 2018 there were 10.5 million visitors from China, with a total expenditure of USD 18 billion. These deep pockets are obviously attractive to Thai brands who may want to increase awareness amongst those traveling.
1 Based on an exchange rate of USD 1.00 = THB 31.16 as of June 11, 2019
2 Digital in 2019 Report, Hootsuite & we are social
About iClick Interactive Asia Group Limited
iClick Interactive Asia Group Limited (NASDAQ:ICLK) is an independent online marketing and enterprise data solutions provider that connects worldwide marketers with audiences in China. Built on cutting-edge technologies, our proprietary platform possesses omni-channel marketing capabilities and fulfills various marketing objectives in a data-driven and automated manner, helping both international and domestic marketers reach their target audiences in China. Headquartered in Hong Kong, iClick was established in 2009 and is currently operating in nine locations worldwide including Asia and Europe.
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iClick Interactive Asia Group Limited
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