Yello Digital Marketing just made an acquisition that could propel it into Thailand

Korea’s Yello Digital Marketing (YDM), a subsidiary of mobile advertising network Yello Mobile, has acquired a stake in Thai online marketing company Adyim. Adyim said in a statement that it aims to “become Thailand’s number one digital marketing firm” in the next three years. It hopes to do so by putting “financial assistance and technological support” from YDM to good use. Both sides declined to disclose any details, save the fact that it was a majority deal.

(Update, 27/6: This post has been updated with comments from Adyim’s CEO, Tanapon Subsomboon, and from Yello Digital Marketing)

Through it, Adyim will get access to “success-proof technology,” Adyim’s CEO Tanapon Subsomboon told Tech in Asia. “As part of the Yello Digital Marketing family, we have a chance to meet fellow entrepreneurs from many countries, who are leaders in each digital segment with their own great technologies.” He named South Korean cloud-based recommendations services company Recobell and mobile ad network Cauly as examples of know-how that can benefit Thailand’s digital marketing space.

Adyim is a four-year-old online firm operating in Bangkok. Its main services include digital content creation, website design, mobile app development, viral video production, and social media management. It seems the 90-employee company has been thriving in Thailand’s online marketing space, boasting over 350 clients including L’Oreal Thailand and Amway.

Plan of attack

YDM has also been busy in Southeast Asia. Earlier this year, it acquired majority stakes in Indonesian digital media and adtech company Adplus and Singapore-based social media marketing startup Gushcloud. Thailand seems to be the next frontier in the Korean dynamo’s acquisition onslaught.

“With [a population of] 600 million, Southeast Asia is one of the largest and youngest markets in the world,” a spokesperson for YDM told Tech in Asia. “YDM Group aims to lead the digital marketing industry in Asia by creating synergies and global networks through alliances with digital marketing companies in both domestic and overseas markets.”

See: Singapore’s Gushcloud gets acquired. Is it really a win for the company?Yello Mobile has ambitions of becoming Asia’s premier ad-based mobile network. It’s doing so by acquiring a series of promising but struggling mobile apps, and endowing them with digital advertising capabilities. The sum is truly greater than the parts here – Yello claims Adyim is one of Thailand’s fastest growing digital marketing companies. Its ad network technology and insight into the country’s digital marketing industry were some of the key factors that drew the company’s gaze.

Business as usual

According to Adyim, the market value of digital advertising in Thailand is expected to be worth THB 8 billion (US$238 million) this year, an annual growth of 40 percent. Digital marketing spend in the country is still very limited compared to more traditional media, but this is expected to change as more of Thailand gets online. YDM’s aggressive move into the territory is a strong indication that there is a market there for the taking.

The deal will benefit the Thai digital marketing ecosystem as a whole, according to Subsomboon. Tools and technologies provided by YDM can help Thailand’s digital marketers up their game, while Adyim’s expansion plans mean more jobs and growth in the sector. “We believe that the healthy competition will help Thailand’s digital industry to grow faster,” he said.

Under the deal, Subsomboon will remain as CEO and retain ownership of the company. “Among multiple foreign marketing groups [that] offered partnerships in the past couple of years, YDM is the most appealing company to strengthen our business in the future,” he said in a statement. “Along with YDM’s unique business philosophy, Adyim will be able to [continue operating] independently.”

“There will be no changes in Adyim’s culture. We will continue to maintain our family-like culture,” he added, talking to Tech in Asia.