Omnicom Group, the world's largest advertising and communications holding company, is teaming up with CITIC Guo'an Group, a member of the State-owned CITIC Group, to strengthen its presence in China's fast-growing ads market.

The two partners will set up a joint venture advertising agency, DDB Guo'an Communications Beijing Co Ltd, scheduled to open on July 3.

The agency will be created through the merger of DDB China under the Omnicom Group and Beijing Guo'an Advertising Corp, a subsidiary of CITIC Guo'an.

The US-based Omnicom will hold 52 per cent of the new venture, while CITIC Guo'an will have the remaining 48 per cent share.

"We expect the co-operation with Beijing Guo'an, one of the top 10 advertising companies in China, will benefit each firm," said John Wren, president and CEO of Omnicom.

According to Wren, the partnership reflects the approach his company has taken in every major market  to grow through co-operating with the best local players.

While Omnicom's business in China currently contributes a little to its global revenue, the firm believes it is a key strategic market for its future growth.

It has taken a series of steps, including selecting a Chinese name and opening its first group office in China in April, to raise public awareness in the country, which is expected to become the world's second-largest advertising market.

"We will bring our skills, creativity, and experiences in other markets to the new venture, while our partner will bring knowledge of the local market," Wren said.

Yan Gang, executive vice-chairman of CITIC Guo'an and chairman of Beijing Guo'an, will be chairman of the new venture, DDB Guo'an. He said the company is ready to share its resources  such as a cable TV network and sports advertising channels  with Omnicom in further co-operation.

The alliance between Omnicom and CITIC Guo'an came after the latter decided to cease its 14-year joint venture partnership with Grey Advertising, which was acquired by Omnicom's rival WPP last year, due to an alleged snub by WPP.

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