Cheil Worldwide has acquired ColourData, one of China’s leading social big data analytics service providers, to strengthen its data-driven marketing capability.
Founded in 2014, the Shanghai-based firm has developed proprietary technology that collects postings and comments from more than 5,000 social media, news and e-commerce websites, giving the company the ability to “analyze buzz by geography, gender, and age group,” while also featuring advanced, AI-powered natural language processing, real-time visualizations, and on-demand report generation.
Cheil Worldwide has worked with ColourData on several social media digital marketing projects in China and moved to acquire the company after recognizing its competitive technology and high potential for growth.
Terms of the deal were not disclosed.
“The acquisition empowers Cheil Worldwide to deliver more robust marketing analytics to its existing clients, while also enhancing its business development potential in China across a range of industries,” Cheil said in the release. “The move will also contribute to the continuous growth of Cheil Worldwide’s digital business, which now accounts for over 40 percent of revenue.”
ColourData experienced steep growth since its formation, as the increasing share of the youth, especially those in their 20s and 30s in the Chinese consumer market, fueled a sudden rise of social media marketing via a variety of channels like Weibo and WeChat. In fact, the company’s annual average sales growth rate (CAGR) over the past three years has been approximately 40 percent.
