iCrossing Looks East to China and Russia

Digital marketing firm iCrossing has partnered with Chinese search engine marketing agency Beijing Gridsum Technology Co, and plans to open its own Asian office by 2010, the firm said today. Through the relationship, Gridsum staff will help manage Asian-focused SEM campaigns for iCrossing’s global clients.

Jeffrey Pruitt, iCrossing’s EVP for corporate partnerships, told ClickZ News the deal is a “strategic relationship,” placing emphasis on the advantages of Beijing Gridsum’s local knowledge and account management capabilities.

“The relationship is an equal partnership, not an acquisition, but we will use the team there very much in the same way we use our own teams across the globe,” he explained. “Gridsum will give us the look and feel of an office.”

However, iCrossing plans to open its own Asian operation in late 2009 or early 2010, and is also currently in discussions with potential Russian partners. Pruitt said he expected a similar arrangement to be agreed to soon for that market.

“Russia and China are two markets in which you really need to have someone there to understand the language and the culture.” A recent flurry of Russian acquisitions by digital ad players suggests that the Eastern-European ad market is booming. Google, WPP, and Aegis have all made investments there in the past year, with a number of other firms opening offices in the region, hoping to cash in on the growing market.

According to Pruitt, the Russian expansion is driven primarily by client demand.

Due to the competitive nature of the Asian SEM market, he would not disclose which clients iCrossing is currently working with in China, but did reveal that they include a global automotive manufacturer, a global consumer brand, and two major travel firms.