Advertising Nagata to form billboard ads unit with Philippines’ Game Plan Marketing Solutions
MANILA, NNA - Japan’s Advertising Nagata Co. will set up a joint venture with Game Plan Marketing Solutions Inc. of the Philippines to cash in on growing demand for outdoor advertising in the Southeast Asian country.
The joint venture, GP-Nagata Inc., to be established possibly in October with an undisclosed capital, will be 30 percent owned by Advertising Nagata and 70 percent by the Philippine partner, Ichiro Nagata, CEO of the Japanese firm, said. Foreign investors are allowed to have a stake of up to 30 percent in a Philippine company.
GP-Nagata aims to get more than 10 major clients in its first year of business and increase the ratio of digital signage to total business with the expected market growth for outdoor advertising due to the government’s large-scale infrastructure development plan.
Advertising Nagata, which specializes in exterior media such as billboards and transit displays, has overseas subsidiaries in two other countries, Malaysia and Myanmar.
The new firm in the Philippines will focus on “Aircast” video advertising, a type of digital signage, as well as outdoor advertising at public markets and other places in provincial cities, the CEO said.
It aims to expand the ratio of digital signage to its total business from the current 10 percent to 30-50 percent in the next seven years. The local partner has seven major companies among its clients and hopes to double its client base in the initial year of GP-Nagata.
GP-Nagata expects to install advertisements at bus terminals and subway stations under construction in Metropolitan Manila, taking advantage of Philippine President Rodrigo Duterte’s large-scale “Build, Build, Build” infrastructure development plan.
With the rise of the middle class in the Southeast Asian country, the local venture is also considering installing guide signboards for medium- and small-sized companies, which are rarely seen in the country at present.
“As the population and their income are expanding in the Philippines, there is great room for growth in advertising,” the CEO told NNA. “We want the joint venture to be listed on the Philippine Stock Exchange within seven years.”
His company previously set up a wholly-owned subsidiary, Nagata Philippines Inc., in the Philippines. But it struggled with doing business on its own and formed a cooperative partnership with Game Plan Marketing Solutions about two and a half years ago.