Nokia Invests in China’s Madhouse
By Azam on October 22, 2008
Nokia’s venture capital arm invested in China’s mobile advertiser Madhouse, marking its first deal in the mainland. Nokia Growth Partners was established in 2004 by its parent and is still wholly owned by Nokia, targeting mobile technology, services and media.
Nokia did not disclose details of its investment in Madhouse, but China and India are two of its main focuses along with the United States and Europe.
Madhouse managed several mobile advertising campaigns for Nokia during the past year and is working closely with Nokia as it expands its Software and Service Initiative in China.
Nokia Software & Service
“Having ran a number of campaigns with successful results together last year, Nokia is a satisfied mobile adverting customer of Madhouse, “ say Dan Wong, who leads in Software and Services in China.
“Madhouse’s intelligent mobile a serving capabilities and its wide ad network coverage complement Nokia’s global efforts in many ways. Nokia benefits from leveraging madhouse’s mobile advertising partnerships and sales force, and gains insight into the development of China’s mobile advertising sector via the country’s market leader.”
Nokia Growth Partners
“It costs one-fifth the amount to develop a company here,” Paul Asel, the managing partner for Nokia’s fund in China, told reporters. “It allows for more efficient innovation,” he said.
Shanghai-based Madhouse has been growing rapidly, benefitting from the world’s largest wireless market in terms of users.
China is also Nokia’s largest market, and while much of its growth in the mainland is focused on lower-end handsets, Nokia says the potential for further growth is still large.
“There is still a lot of penetration to go in the China market before it is saturated,” said Nokia’s Chief Financial Officer, Rick Simonson.
Nokia’s third-quarter profits fell from a year ago, hit by weaker cell phone demand in Europe, but the world’s top handset maker said booming demand from emerging markets such as China and India has outweighed weakness in developed markets.
Executives at Nokia attributed their decision to the low cost of product development in China. Madhouse has seen a rapid rate of growth this year.
Earlier this month, Madhouse struck a deal with GroupM China to be the agency’s preferred mobile marketing partner. Madhouse will provide marketing options to GroupM clients through its subsidiaries Mindshare, MediaCom, Mediaedge:cia and MAXUS.
Categories : China, Media & AdsTags : Dan Wong, GroupM, Joshua Maa, Madhouse, nokia, Nokia Growth Partners, Paul Asel