(Oct 29): Advertising giant Publicis Groupe SA agreed to buy Singapore’s Hepmil Media Group to bolster its social-media expertise in Southeast Asia’s rapidly growing online market.
Hepmil works with more than 3,000 high-value creators making memes and other content for over 450 brands, the companies said in a joint statement Wednesday. They didn’t disclose a value for the deal, which is one of the highest-profile internet takeovers in Southeast Asia in what’s been a slow year for mergers and acquisitions.
The purchase underscores social media’s rising importance for advertising companies, with consumers spending increasing amounts of time on their smartphones scrolling through apps such as TikTok and Instagram. Hepmil, whose sites Sgag and Mgag are known for memes and other funny content, attracts tens of millions of visitors a week across its properties.
Hepmil’s irreverent content in Southeast Asia has built a cult-like following among young, digitally savvy consumers in the region of 675 million people. Its pool of online influencers and troves of marketing data have helped it clinch deals with brands including Disney, Google and Uniqlo, which are seeking to lure difficult-to-impress Gen Z and millennial audiences.
The acquisition would mark one of the biggest outlays yet in the region by France’s Publicis, which has been snapping up companies in the social media and influencer marketing space, such as Brazil’s BR Media Group and US-based Influential. Advertisers are spending more money on influencers to promote their brands as a way to get people to pay attention and buy into their marketing.
“Hepmil’s origins as the creators of some of Southeast Asia’s most loved consumer content have helped redefine how brands can show up natively, authentically, and with real-time cultural relevance,” Amrita Randhawa, head of Publicis Singapore and Southeast Asia, said in the statement.
See also: Netflix weighing bid for Warner Bros studio and streaming — report
A takeover would also be a milestone for Southeast Asia’s startup ecosystem, which has been suffering from a dearth of exit opportunities as companies and investors have shied away from emerging markets.
Hepmil traces its roots to a meme page started in 2012 by university friends Karl Mak and Adrian Ang, who were fascinated by the explosive rise of entertainment sites such as 9gag in other regions. The pair started creating content in the back of their lecture halls for a local audience and their viral stick-figure memes ultimately attracted the attention of bigger advertisers like Singapore Airlines Ltd’s low-cost carrier Scoot.
Soon, as more advertisers came, the duo decided to call their venture Hepmil, an invert of the Hokkien phrase “lim peh” meaning “I, your father” — a colloquial, arrogant way of referring to oneself in the third person and a way to pay homage to the unpretentious humour that made their memes resonate with a local audience.
See also: Toyota CEO rules out higher Toyota Industries buyout offer
Today, Hepmil operates in several countries across Southeast Asia, including Malaysia and the Philippines. The founders own a majority stake in the company, and have raised about US$10 million from investors including MSW Ventures, Quest Ventures and Temasek Holding Pte Ltd’s Pavilion Capital.
Uploaded by Chng Shear Lane
