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Change Agent

By: Matt Eaton, Hong Kong
Published: Jun 23, 2009

As CEO of Bates 141, a regional network that spans 14 continents across Asia, Richards says that staying true to its Asian roots and keeping strong links to the local culture is at the core of its operating values and serves as a major part of its offering to local and regional marketers.

Housed under the WPP network, Bates 141 was relaunched as an Asia-only specialist regional network within the WPP Group in late 2003 and today sits in a unique position where interference from its notoriously meddling UK parent seems minimal.

Since WPP decided to spare Bates the same fate as its European and US counterparts, which were both folded into other agency networks, Richards and Bates 141 chairman Jeffrey Yu have expanded the network to include some 24 offices across Asia and turn the network into one of the most ambitious of all the ad networks in Asia.

Richards joined Bates as chief operating officer in 2006 and two years later was promoted to CEO. Prior to Bates 141, he worked at the Ogilvy Group, where he founded David Communications, creative boutique agency with seven offices across Asia.

An Australian, Richards is arguable one of the youngest network CEO's and in his relatively short time as network boss has shows some commercial acumen.

In the past two years the Bates network has expanded its footprint significantly, notching up five major acquisitions in the "activation" (more on that soon) and digital advertising arenas. India and China have been a central focus of this acquisition strategy with the purchases of companies like Enterprise Nexus Communications and Sercon in India, as well as MeThinks and Evision, both in Shanghai, cementing its footprint in two of the regions biggest growth engines.

"Jeff and me are controllers of our own destiny," Richards says. "We have great freedom, but great responsibility as well."

On top of all of this, Richards was a key player in building the Asia Pacific arm of Enfatico, the WPP agency set up as a one-stop-shop for Dell's advertising business, which over six months saw an agency of 250 staff launched across Sydney, Beijing, Singapore and Tokyo. Unfortunately for Richards, WPP in April folded the agency into Y&R Brands, just 16 months after the ambitious project was launched.

"The last two years were transformation years for Bates 141 network in terms of the culture, the companies we acquired and the launch of Enfatico. But 2009 will be a year of intense focus."

This focus, it seems, will include taking stock of the past couple of years, bedding down the acquisitions and ensuring that the culture and core values of the Bates network remain intact.

"The key for us is to provide an agency of support and guidance. We want to keep our entrepreneurial culture and if you get one acquisition wrong, it can be very distracting. As a network CEO, seeing people grow around you in a measure of success, but it starts with a belief in a culture."

Activation and change are two words that are used a lot around Bates 141 offices and the economic meltdown has been a way for the group ramp up its "activation" model across the region.

"Advertising is not a business we're solely in these days - activation and moving people into a sale - I think it's these things that really get peoples attention."

Activation, argues Richards, is an area that clients will increasingly warm to as the recession settles and effectiveness becoming more of a critical focus.

"In the past agencies have paid lip service to effectiveness but now they really have to peddle that and deliver it. That's an important shift. Smart clients want creative solutions, but their appetite for risk is less."

So what does the future hold for the Bates 141 network in Asia? India and China, which Richards describes as engine rooms of growth, will be key markets for Bates, he also hints that while no plans are in place, it would be a dream to develop similar style Bates networks in BRIC countries of Brazil, Russia, India and China.

"Taking Bates to all BRIC markets would be a dream. There seems to be a shift in that area. Bring on the BRIC," he says.

But for now he says there are still opportunities for Bates in its hometowns of Asia.

"This year will not be a year of inaction. Engaging clients and engaging staff is how we will manage ourselves. Coming out of 2009 the fundamentals of business should be a lot stronger, we see 2009 as a tipping point for real growth, but it will test the mettle for a lot of people."

"We see our market share growing a lot in 2009. We want to be nimble, heavy feet don't work well here, and that will be very important as we settle into this downturn.

"It's very important we don't become a foreign agency. We have a very small percentage of expats within Bates, we're a network dedicated to Asia."




Companies featured:

  • David Communications
  • Ogilvy and Mather
  • Bates 141