MxMIndia

Category: ADVERTISING

  • The students representing over 100 B-Schools beyond the Top25, were tested by MeritTrac on standardised tests in verbal ability, quantitative ability and reasoning on behalf of recruiting companies

    Study reveals only 21% MBAs employable!

    By A Correspondent

     

    A nationwide study of marks secured by 2,264 MBAs who sat for tests by recruiting companies found only that only 21 per cent could make the grade. The previous study of 2007 by MeritTrac placed employability index at 25 per cent.

     

    The students representing over 100 B-Schools beyond the Top25, were tested by MeritTrac on standardised tests in verbal ability, quantitative ability and reasoning on behalf of recruiting companies.

     

    Examination of ‘AICTE Approval Process Hand Book: 2012-13’ reveals that the number of MBA seats in India has grown almost four fold – from 94,704 in 2006-07 to 3,52,571 in 2011-12.

     

    To benchmark the current state of employability of management graduates, MBA Universe.com and MeritTrac teamed up to conduct the research and release top line findings ahead of the MBA Universe.com organized Indian Management Conclave 2012, on August 9-10 in New Delhi.

     

    For purposes of this study, pre-recruitment test scores of 2,264 candidates were analysed by MeritTrac to assess how they fared on the three tests in terms of the average percentage scores and pass-through rates.

     

    The pass-through rates were calculated based on the pre-decided cut-off for each test. These cut-offs are at par with the average cut-off scores decided by companies in their recruitment exercises.

     

    The threshold cut-off scores used in Verbal ability, Quantitative ability and Reasoning were 45 per cent, 35 per cent and 40 per cent respectively. Overall average percentage score obtained by MBAs in Verbal ability, Quantitative ability and Reasoning was 52.58 per cent, 41.17 per cent and 37.51 per cent respectively.

     

    While performance on verbal ability seems to be satisfactory, reasoning is an area where there is scope for improvement. Considering that the elements of the reasoning test (deductive logic, data sufficiency, spatial reasoning, and analytical reasoning) are crucial to making sound management decisions, this is a result which warrants closer attention.

     

    The total pass-through rate, which is an index of employability, at 21 per cent leaves scope for improvement considering that organisations hire from this talent pool for strategic roles and this is the managerial pool that companies bank on.

     

    “The results of 2012 employability report covering 2,264 B-schools students from 29 cities are quite startling. This report clearly brings out the employability gaps across various competencies and highlights the need for scientific examinations and tests to align the candidate skills to employability metrics,” saidS Murlidhar, CEO and Director, MeritTrac Services.

     

    The MeritTrac- MBA Universe Employability Index study of MBAs will now be conducted once every two years.

     

    “Questions are asked about the talent coming out of MBA colleges, and whether they create a workforce responsive to the needs of the economy like understanding of business and on-the-feet thinking. So, decision-making skills are being valued more than ever,” said Amit Agnihotri, chairman of MBAUniverse.com.

     

     

  • Hot on the heels of bagging the Aditya Birla Retail "More." business, Everest has won the strategic and creative duties for Borosil in a multi-agency pitch

    Everest wins Borosil’s creative mandate

    By A Correspondent

     

    Hot on the heels of bagging the Aditya Birla Retail “More” business, Everest has won the strategic and creative duties for Borosil in a multi-agency pitch. The agency’s Mumbai office will handle the business, initially working on the microwavables range.

     

    Commenting on the reasons for choosing Everest, Priyanka Kheruka, Director, Borosil Glass Works commented: “We, at Borosil, are very passionate about our brand and wanted a partner who shares our passion and vision for Borosil. Everest has demonstrated this passion and have created a strategy aligned with our vision.”

     

    Commenting on the win, Dhunji S. Wadia, President, Everest said: “We were given a very detailed and specific brief. This helped the team in working on interesting creative solutions. We are delighted to be their agency of choice. We look forward to take the brand to greater heights.”

     

    Rahul Jauhari, NCD, Everest said: “It’s great to welcome clients who appreciate totally unconventional thinking and work. We look forward to a wonderful relationship.”

     

    Borosil Glass Works is a producer of laboratory glassware and microwavable kitchenware in India. It was established in 1962 in collaboration with Corning Glass Works, USA. In 1988, Corningdivested its share holding to the current Indian promoters.

     

    Everest is a creatively led, full-service agency with a reputation for delivering fresh, original thing that helps clients succeed. The agency has offices in Mumbai and Delhi and representations in Chennai, Bengaluru and Kolkata.

     

  • Dish+ is positioned at a consumer-friendly and competitive price of Rs1,690 (against all other SD boxes at Rs 1590) with a free 4 GB pen drive as promotional offer

    Dish TV launches India’s first SD Recorder with unlimited capacity

    Salil Kapoor

    By A Correspondent

     

    Dish TV has launched “Dish+”,India’s first standard definition box with unlimited recording facility. Dish+ is positioned at a consumer-friendly and competitive price of Rs1,690 (against all other SD boxes at Rs 1590) with a free 4 GB pen drive as promotional offer. Post VCR, there is no recording device available with consumers and there is a huge vacuum to fulfil the consumer need. Dish+ fulfils the ‘need gap’ of recording facility for the consumers.

     

    Speaking on the launch, RC Venkateish, Chief Executive Officer, Dish TV India, said: “Being pioneers and market leaders, we have constantly reinvented and redefined the market with thought leadership to be ahead of the pack. Dish+ is being launched in 42 cities of Phase I and Phase II of digitization and will clearly demonstrate Dish+ as a better alternative for all viewers who will shift from analog to digital.”

     

    Salil Kapoor, Chief Operating Officer, Dish TV India, emphasized: “Dish+ is a comeback of recorders in the living room and is a clear differentiator vis-à-vis other alternatives including digital cable. Its highly competitive launch price will position it as a preferred option amongst all DTH buyers”.

     

    The unique feature of Dish + is its compatibility with any USB device enabling consumers to simply plug and play an existing USB stick/ HDD, and build an entire genre based library of their favorite program. Dish+ offers unmatched advantage of recording on SD. Dish+ is user-friendly with features like “plug-n-play” through an external USB device. This enables all benefits of a traditional DVR like recording and playing back programs, Pausing or Rewinding live TV, different play-back positions, event based recording (EBR), time based recording (TBR) and so on.

     

  • I think ad agencies should devise a powerful communication package, to be run across the media, with the objective of imparting Americans with basic knowledge on various religions and cultures

    Anil Thakraney: Ad agencies can help with hate crime control

    By Anil Thakraney

     

    I still recall the first thing many Americans did immediately after 9/11. This was to frantically search for their world maps, and try to locate Afghanistan. This, of course, became a subject of many jokes at the time, but after we stopped sniggering, we realized that the average Yankee is totally cut off from the rest of the world. That, he/she has never stepped out of his/her comfort zone and hasn’t even bothered to find out what goes on beyond their shores. That it was of no consequence to them. And this isn’t something to laugh at, it can be dangerous.

     

    The recent attack on a Gurudwara in Wisconsinis yet another reminder that the average American remains blissfully ignorant of international geography, history, culture and religion. The attack was obviously targeted at another religious minority group, and our Sardarji friends paid heavily for someone’s lack of general knowledge. So then what’s the way out of this mess? There is only one way: this problem can be fixed by advertising agencies. Because it pertains to communications.

     

    I think ad agencies inIndiashould work with their American parents and devise a powerful communication package, to be run across the media, with the objective of imparting Americans with basic knowledge on various religions and cultures. The Obama government needs to include this education as a part of school and college syllabi, but that can only work as a long term solution. Ad agencies can create campaigns to provide immediate solutions.

     

    So go for it, people. Not only will such a public service campaign win you many awards, you can end up saving many innocent lives. What can be sweeter than that?

     

    An important disclaimer: Having said the above, let me hasten to add that attacks on ANY community members is highly deplorable, and one hopes that the world evolves to a stage where these things don’t happen at all. But in the meantime, at least the ill-informed Americans must be educated on how to differentiate between communities. That itself will be an important beginning.

     

    * * *

     

    PS: If you are a constant tweeter, and have no control over your thoughts, hit this link. It’s about the journalist whose Twitter account was suspended. I like this. It’s time the social media portals stepped in to oversee things. Excessive illegal and abusive stuff seems to be freely floating around in the virtual world.

     

    Link: http://mashable.com/2012/08/01/kicked-off-twitter/?
    WT.mc_id=en_all_stories&utm_campaign=All%2BStories&utm_medium=email&utm_source=newsletter

     

  • Moe's Art has bagged Reliance Entertainment Digital, Infiniti Mall and upcoming Hollywood flick Expendables 2 in Q1 2012-13

    Moe’s Art adds 3 more clients to its roster

    By A Correspondent

     

    Moe’s Art Pvt Ltd has bagged three new accounts in the first quarter of 2012-13. The agency has signed on Reliance Entertainment Digital, Infiniti Mall and the upcoming Hollywood film Expendables 2  and will manage their communication and PR across India. All three accounts belong to industries that are fairly diverse. The accounts will be handled by the Mumbai branch of the agency.

     

    Reliance Entertainment Digital is the digital arm of Reliance Entertainment, a part of the Reliance Anil Dhirubhai Ambani Group (ADAG). It reaches out to consumers through its different entities like Zapak Digital Entertainment Ltd; Jump Games Pvt. Ltd and BIGFlix. Moe’s Art will be managing the communication of all three companies across digital, print and electronic platforms across key markets.

     

    Moe’s Art will be managing Infiniti Mall’s shopping malls located in Andheri and Malad in Mumbai. Moe’s Art will be concentrating on the events and activations that are organized in the mall along with specific brand connect.

     

    As for The Expendables 2, Moe’s Art will execute a pan India communication strategy with an aim to target industry as well as consumer stories. The agency will handle the communication for the movie across platforms and also with reviewers. Moe’s Art will also be focussing on promotional activities and events to set the scene for the action packed movie.

     

    Commenting on the same, Mr. Vishaal Shah, Managing Partner and Executive Editor, Moe’s Art said: “The last quarter ended on a positive note for us. At Moe’s Art, we have always strived to provide our clients with an innovative and unique approach towards media communication. By offering integrated communication strategies, we seek to offer value to our clients and look forward to continuing to build on this in future too.”

     

    Currently the agency has offices in Mumbai and Delhi. Moe’s Art has a diversified client portfolio from FMCG to financial space.

     

  • Mahindra Sri Lanka Premier League to kick off on August 11, 2012

    Mahindra bags title sponsorship rights of Sri Lanka Premier League

    By A Correspondent

     

    Mahindra & Mahindra Ltd (M&M Ltd) has partnered with the Sri Lanka Premier League (SLPL) as their title sponsors. The prestigious League kicks off from August 11 and will be played over three weeks at two venues -Colombo and Kandy. The inaugural edition of this League will feature seven provincial teams in a round-robin league format, with the winners having the distinction of playing in the Champions League Twenty20 (CLT20) as one of the teams in the qualifiers.

     

    Upali Dharmadasa, President of Sri Lanka Cricket said: “Sri Lanka Cricket (SLC) is proud and honoured to have on board, one of India’s leading business houses as the Title Sponsor of the Sri Lanka Premier League which shall now be referred to as the Mahindra Sri Lanka Premier League (or the “Mahindra SLPL”).

     

    “Since the Mahindra brand is also a household name in Sri Lanka, we believe it is the perfect platform to take the message of the Sri Lanka Premier League, which is “Gama Rata Lokeya, Eka Karana” or “Province, Country, World, Becomes One” to the world,” he added.

     

    SP Shukla, President- Group Strategy and Chief Brand Officer, Mahindra Group said: “Sri Lanka is a strategic market for the Mahindra Group which is already an established name in the country and what better medium than cricket to connect and engage with audiences as it is the most followed sport in the sub continent with a fan base of approximately 1.5 billion fans across India, Sri Lanka, Pakistan and Bangladesh alone.”

     

    “We are thrilled to be associated with the Sri Lanka Premier League. With the leading lights of world cricket in the fray, we are positive that this League will be a huge success,” said Ruzbeh Irani, Chief Executive – International Operations (Automobile and Farm Sectors), Mahindra & Mahindra Ltd. “Mahindra has been actively associated with various sporting events and partnering SLPL endorses Mahindra’s commitment to promote a sporting and active lifestyle,” he added.

     

    The Group’s association with the Sri Lanka Premier League underscores its continued commitment to promote sports not only at the grassroots level but also across a global platform.

     

    There will be 24 games in the Mahindra Sri Lanka Premier League and each team will be allowed a maximum of 18 players. Teams will be allowed to field a maximum of four foreign players per game with the remaining being local players. The Man of the Match in all 24 matches will receive the title of “Mahindra Man of the Match” while the ‘Man of the Tournament’ will win himself an XUV5OO.

     

  • This campaign will work. Because it's rooted in desi culture, it features situations that are relevant to the lives of those who live in the heartland of India

    Debrief: KBC: The power of knowledge

    By Anil Thakraney

     

    Well, yet another season of Kaun Banega Crorepati is on the way. And the ad campaign has already gotten underway. I have always believed that for an old and established show like the KBC, the advertising needs to be really fresh and exciting to generate viewer interest. Especially so, because all things are likely to remain constant with the show’s format, including the host.

     

    This time the ad positioning is ‘Gyaan’. KBC promotes the show on the contestant’s knowledge skills. And on how it serves as the great leveller in life. While the idea doesn’t excite me much – it’s much too close to the previous ‘Koi bhi insaan chhota nahin hota’ – the execution of the new ads shines, and the script is very well written. There are many commercials on air, I watched the one featuring a vernacular lad called Bhaskar, who keeps getting dissed by friends and foes alike for his poor English speaking skills. And of course the girls avoid him as if the chap suffers from deadly measles. The TVC ends with Bhaskar winning 50 lakh rupees on the show, purely on the strength of his general knowledge. And haanji, he goes one-up on all those people who had trashed him all his life.

     

    [youtube width=”400″ height=”225″]http://www.youtube.com/watch?v=dNGT4mQE92I[/youtube]

    This campaign will work. Because it’s rooted in desi culture, it features situations that are relevant to the lives of those who live in the heartland of India. And indeed these are the folks who form the bulk of KBC’s viewers. In that sense, the campaign is highly focussed and will score big on empathy.

     

    I applaud the ad agency for lifting what is actually a very generic and obvious concept with cool advertising and witty writing.

     

    Rating: (On a scale of 1 to 5): 3.5 Focussed and funny.

     

     

  • The Nirvana Digital YouTube Content Creators Network eyes a market share of the 800 million unique user visits to YouTube each month

    Now, a YouTube ‘Content Creators Network’ for India

    By A Correspondent

     

    Nirvana Digital, a leading creator and distributor of audio and video content across Internet and mobile platforms, has launched a “YouTube Content Creators Network” that will start the creation of original content as well as the distribution of produced video content from the Indian market across YouTube channels.

     

    Through this network, Nirvana Digital aims to capitalise on the exploding power of YouTube, which at current estimations is around 800 million monthly unique user visits across the globe, and a staggering 30 million inIndiaitself.

     

    Nirvana Digital’s new YouTube Content Creators Network provides an opportunity ranging from individuals to large organisations. The network will enable them to upload content for immediate distribution, monetization and direction of traffic.

     

    The potential for “talent” to tap into YouTube inIndiais immense as YouTube is emerging as the first global TV station. It has committed $100 million to 96 new video channels and has recruited topHollywoodtalent to produce content.

     

    Nirvana Digital specialises in the distribution of movies, music videos, documentaries, web shows, news, gossip, and has already established itself as the distributor of top quality Bollywood and mainstream content.

     

    In the words of Pinakin Thakkar, Founder, Nirvana Digital: “The digital platform is large enough globally for video creators to still have their fame and recognition, and we are here to help creators and content owners push content to a global audience while earning immediate revenue from their videos.”

     

    He added: “YouTube, which delivers one out of every three online videos viewed (according to ComScore), has become an increasingly important distribution channel for content creators, established media companies and advertisers. As the demand for quality digital content grows across the world, Nirvana Digital is keen to create brands out of video creators inIndia, monetize them anddrive traffic to them from its existing networkof millions of views.”

     

    Nirvana Digital will also help independent video producers capitalise on the YouTube revolution to create content which receives direct feedback from audiences across the world. The model brings together different individuals, gives them support and infrastructure to collaborate and build audiences around their content across various distribution channels. Towards this end, Nirvana Digital provides their own specialized web video studio at Peddar road in South Mumbai with green screens, high end cameras (Canon 5D MKII) and lighting facilities. They also have a dedicated team who to help with the technical aspect of encoding, uploading and promoting videos, as well as animators for videos that may benefit with CGI.

     

  • bindass®, India's leading youth brand, is all set to introduce the 9th season of Beg Borrow Steal

    Bindass to unveil Season 9 of Beg Borrow Steal

    By A Correspondent

     

    Finding your way through an unknown destination is difficult, but if you are in a foreign country and the language is alien, it gets even tougher? Ever wondered, what would it be like to be stranded in an unknown international land, with no clue on the language and with absolutely no money in your pockets! Sounds’ terrifying isn’t it?

     

    And yet, Aaliyah, is all set to do precisely the same thing in the brand new season of Beg Borrow Steal – The Thai Way!

     

    bindass(R), India’s leading youth brand, is all set to introduce the 9th season of Beg Borrow Steal which witness Aaliyah dodging through the floating market, Chinese Temple and Thai villages.

     

    As the shows goes international for the first time, Nikhil Gandhi, Executive Director, Youth Channels – Media networks Disney UTV said: “BBS has been an absolute hit with the audiences, which is what has prompted us to come back with the 9th season. Our aim is to always offer our viewers with something new so that we keep evolving the seasons and this time we are back with yet another twist.”

     

    Commenting on the new season of Beg Borrow Steal, Aaliyah said: “What’s interesting about Beg Borrow Steal is that every season this show comes up with new challenges and new destinations. With an international destination, I am expecting the journey to be far more difficult and challenging.”

     

  • BMB India is the advertising unit of Madison World, a diversified communication group

    BMB wins 2 Hamilton brands – Treo And Milton

    By A Correspondent

     

    BMB India, a 50:50 JV between Trevor Beattie’s BMB and Madison World has won the Hamilton account. Prabha Prabhu, CEO, BMB India said: “We pitched for one, but won 2 brands of Hamilton Houseware P Ltd – Milton and Treo. In June, when I had the creative team in place with Raj Nair as the creative head, I decided to contact our old client Hamilton. We made a Strategy and Creative presentation for the brand Treo Glassware. Work for the 2 brands will start immediately since both the brands become very active during the festive season. I am glad to be associated with Milton once again.” Both Milton and Treo are the flagship brands of Hamilton Houseware Pvt Ltd.

     

    This win comes hot on the heels of the recent account win of Leapfrog Holidays. BMB India is the advertising unit of Madison World, a diversified communication group with 22 units across 9 specialized functions of Advertising, Media, PR, Out-of-Home, Rural, Retail, Entertainment, Mobile, Events and Sports; employing over 900 communication professionals across cities in India, Sri Lanka and Thailand.

     

     

  • And the best news is that star athletes like Mary, Saina, Vijay and others will inspire a whole lot of young Indians to take up athletics very seriously

    Anil Thakraney: Indian media wins Gold @ Olympics 2012

    By Anil Thakraney

     

    I am forever taking potshots at our media on all sorts of issues. Most of the criticism is well deserved, of course! 🙂 But there comes a time when one needs to applaud them for good work done. Must say I am extremely happy with the glorious coverage of the London Olympics. And it’s been an outstanding show across the media, in particular on the news channels and in the daily press. This is important for the nation’s sporting future, because the excessive attention to cricket leaves the rest of the sportsmen and women languishing on the sidelines. Thanks to all the excitement in the media, this is no longer the case. Mary Kom, relatively unknown till yesterday, is a household name today, she’s on the lips of every bachcha bachcha.

     

    The argument usually put forth is that the reason our media pays so much attention to one game is because India is a cricket crazy country. And the media is supposed to cater to the tastes of the masses. This theory has been blown to smithereens by the Olympics. We Indians happily consumed all the coverage, we passionately backed the contestants, so it’s clear that the media can take the lead on issues and influence viewer behaviour. And I must add here that I don’t recall this kind of hectic coverage during the Beijing Olympics, so it is refreshing to see things have changed.

     

    And the best news is that star athletes like Mary, Saina, Vijay and others will inspire a whole lot of young Indians to take up athletics very seriously. This will lead to a better score-card for India in the future tournaments. And the media hype will put pressure on the various state governments to honour and support athletes from their respective regions. It’s high time this happened.

     

    Yes, the London Olympics has been Indian media’s shining hour. A pat on the back to all the editors, reporters and studio heads. And I sincerely hope I get a chance to write more such happy posts in the future. Even I get tired of cribbing constantly, haha.

     

    ***

     

    [youtube width=”400″ height=”220″]http://www.youtube.com/watch?v=MjTLhW0c5cM[/youtube]

    PS: Louis Vuitton pays a rich, touching tribute to the great Muhammad Ali. This is the fash brand’s first ever campaign. The ad recites a lilting speech made by the legendary boxer inside the ring. Superb script, concept and direction.

     

     

     

     

  • Aegis' acquisition of Communicate 2 is part of a series of M&As in the Indian digital media space

    Another win-win digital equation

     

    By Johnson Napier and Robin Thomas

     

    ‘By 2015, we want to be the top 3 player in every single sphere we operate in’
     

    What led you to shortlist Communicate2 as the partner of choice?

    Communicate2 is one of the largest and oldest firms in the area of search & performance marketing in India. Vivek Bhargava, as you’d know, is considered to be the guru of search inIndia. He is also one of the guys to be Google-certified and has been in this business since 1997 – a time when the internet and search was in its absolute infancy. In our view, nobody else managed the quality and scale of the business that he has built up, and therefore he was a preferred partner of choice.

     

    The other important reason for choosing Communicate2 was chemistry – Aegis Media has a certain vision and value outlook which is very close to our heart and Communicate2 seemed to have gelled very well with those attributes. There was a lot of comfort on both sides. So these were some of the key reasons for us to choose Communicate2.

     

    Will you be laying enhanced emphasis on Search with the current acquisition…

    The focus is on search because it is one of the fastest growing parts of our business. Clearly, Communiacte2 is the biggest player in the space and now with iProspect and Communicate2 together, we are straight away the number one player of search in India. So that’s how it is placed as of now.

     

    How long has it been since you have been pursuing Communicate2? Did you scan the market for other potential candidates?

    We were working with them about 4-5 years ago, but nothing more came out of that deal. This recent move has been in the works for a few months. Also, we did scan the market as anybody else would and we did have a few names that we shortlisted and we narrowed down to Communicate2.

     

    The deal seems heavy on the investments front. Would you share with us the monetary plans you engaged in towards snapping the agency?

    An agency that is the oldest and has a workforce of more than 130 people is not going to sell out cheap. I cannot disclose the amounts behind the deal, but I can say that it has been fairly priced.

     

    The market has been abuzz with news of big communication houses buying out specialist digital agencies in the recent past. What would you infer of this trend that everybody is taking a liking to?

    I cannot comment about others, but there is a clear strategy that Aegis Media believes in and that is by 2015, we want to be the top three player in every single sphere that we operate in – be it out-of-home, search or digital. As part of our strategy to be in the top 3, the best way of getting there was by partnering with Communicate2 because their expertise, their client base and their search professionals coupled with the iProspect tools and knowledge would be an unbeatable combination.

     

    In an acquisition it is very important that you have to see how the acquisition fits with the plans of your company. So the task of integration becomes key, which is why the quality and type of people and the chemistry become important. So companies that are blindly going out and buying companies will fall flat on their face, but those who are able to acquire and integrate companies and have a great bond with the partners will be successful in the long run.

     

    Globally, digital contributes more than 35 per cent for Aegis Media. What is it that you anticipate from the Indian market post the acquisition of Communicate2?

    We are looking at being the clear No 1. Globally, iProspect is the world’s largest search network, and in India we now become No 1 with this venture. But we want to be No 1 by a long distance. We want to be double the size of the No 2 guy in a few years.

     

    What are the immediate changes that will be seen on ground?

    There is a new office that we are in the process of doing up in Mumbai; their staff will be moving into that new place soon. Likewise the Delhi team too would be amalgamated in our office. With this the entire Aegis Media clients will have benefits from Communicate2 and vice-versa.

     

    As for people, Vivek will be the MD of the new venture. He already has a management team. Of course, as growth happens we will keep recruiting more people. All other aspects remain the same.

     

    The announcement comes just weeks after Dentsu acquired a stake in Aegis Media. Has this deal been inspired from that takeover…

    These things do not happen overnight; it has been ongoing much before that. The two are not related.

     

    Future plans from Aegis Media…

    As I said, we will be the top 3 player in every space that we operate in. In some instances we will do that organically, in others we will do that inorganically – provided we get a good partner. We are not on the lookout as of now but if any new opportunity does come up we will not be turning a blind eye to that.

    No doubt people would talk about the number of medals won and the records that were broken in Olympics 2012; but what it will be most remembered for is the use of digital media, particularly social media. All of the Olympics events are being streamed live on YouTube for the first time; there has been an increase in the number of Facebook users and Twitter accounts and one can even get live news updates online. Even Google has been putting up doodles on its home page, giving users information and updates on the Olympic sport of the day. These are just few signs that digital has arrived.

     

    The past few months have witnessed quite a few mergers and acquisitions in the digital space. Standalone digital agencies, particularly those with over four years of existence, are being acquired by larger advertising networks. Only recently Publicis Groupe has announced the acquisition of Resultrix, a digital marketing agency, with the aim of strengthening Publicis Groupe’s presence in India as well as its digital dominance. Prior to this, JWT, one of the leading advertising agency acquired a majority stake in Hungama Digital Services, the digital and promotions marketing division of Hungama Digital Media Entertainment. Also recently Gruner + Jahr, the publishing division of European media conglomerate Bertelsmann AG, acquired a majority stake in Network play,India’s digital ad network company.

     

    On August 09, the media and digital communications group Aegis Group plc (“Aegis”) announced that it has acquired Communicate 2, a performance marketing and search agency in India.  With this acquisition, Aegis Media becomes one of the strongest agencies in the digital space in India. Communicate 2  will be merged into iProspect India’s existing operations; strengthening its network in key cities across India and providing additional service capabilities for its clients.

     

    Speaking to MxMIndia about his views on the increasing trend of big communication houses buying standalone or specialist digital agencies, Mr Ashish Bhasin, Chairman India & CEO South East Asia, Aegis Media said: “I cannot comment about others, but there is a clear strategy that Aegis Media believes in and that is by 2015, we want to be the top three player in every single sphere that we operate in – be it out-of-home, search or digital. As part of our strategy to be in the top 3, the best way of getting there was by partnering with Communicate2 because their expertise, their client base and their search professionals coupled with the iProspect tools and knowledge would be an unbeatable combination.”

     

    “In an acquisition it is very important that you have to see how the acquisition fits with the plans of your company. So the task of integration becomes key, which is why the quality and type of people and the chemistry become important. So companies that are blindly going out and buying companies will fall flat on their face, but those who are able to acquire and integrate companies and have a great bond with the partners will be successful in the long run,” he added.

     

    Mr Vivek Bhargava, Managing Director, Communicate 2 was of the view that these are signs that digital media has arrived and that even brands have accepted this reality. “Digital marketing in India has now arrived. More promoters and senior management people now believe that digital is a very critical part of their marketing endeavour. So they are spending a lot of time around the medium. About 3-4 years ago we were talking about digital being the future and today digital is now considered as present. Earlier digital used to attract a small budget from marketers, but now they position it as their first priority and question whether they need conventional media or not.Mobilehas given digital three times the reach of television. So I believe digital is going to be the dominant medium in the future.”

     

    MxMIndia also spoke to a few industry players to gauge their take on the recent mergers and acquisitions in the digital space, especially Aegis Media acquiring Communicate2′.

     

    Anurag Gupta

    According to Mr Anurag Gupta, MD, DGM India, it is a win-win situation for Aegis Media and Communicate 2: “Vivek Bhargava has done well for himself, he has created a fairly good outfit and the testimony for this is the fact that it has been acquired. This is a good sign. I believe that this trend will continue – most of the standalone digital agencies will get merged with larger offline agencies. Both search and performance advertising are growing robustly. In fact, a completely new category in digital has emerged in the past one and half years – e-commerce business. They are doing a lot of search and performance advertising, so there is lot of growth.”

     

    Mr Amardeep Singh, Co-Founder and CEO, Interactive Avenues was also of the view that the Aegis acquiring Communicate2 is a win-win situation: “I believe it is a good move for both Aegis Media and Communicate2, as this kind of transaction will help Communicate2 to scale from where they are currently placed. It doesn’t matter whether an agency is part of, or not part of, a larger advertising networking, if it continues to operate as an independent agency despite being owned by a larger network then it retains its identity. Typically, a specialist agency is able to provide a holistic solution to the clients and everything happens in-house for them. What happens is that when an agency offers an offline as well as online service, the focus on digital is lost. A standalone digital agency is able to give its clients that much more focus than an agency which offers both offline and online services.”

     

    So, while the Aegis Media acquiring Communicate 2 is seen as a win-win situation by industry players, it is also believed that this is just the beginning in the digital space.

     

    ‘It was a meeting of the best minds of the world’
     

    The buzz was that you were being hounded by most big communication players in the market for a takeover and now you’ve finally given in to Aegis Media. How would you describe the takeover journey?

    We had the opportunity to talk to every single large player and we found that the way the market is growing, there is going to be a lot of technology components required in it and iProspect globally has the best technology in the world. Also, we are a very dominant agency as far as search and performance marketing is concerned in India while iProspect was the world’s largest search company, so it was a meeting of the best minds of the world. The digital market in India has matured to the level where clients are looking for the best in the world and we felt that with the expertise that iProspect had to offer, it was a perfect solution to offer to our partners. And we endeavour to take decisions for our partners as much as it helps us.

     

    What is your view on big communication players showing sudden interest in digital in India?

    Digital marketing in India has now arrived. More promoters and senior management people now believe that digital is a very critical part of their marketing endeavour. So they are spending a lot of time around the medium. About 3-4 years ago we were talking about digital being the future and today digital is now considered as present. Earlier digital used to attract a small budget from marketers, but now they position it as their first priority and question whether they need conventional media or not.Mobilehas given digital three times the reach of television. So I believe digital is going to be the dominant medium in the future.

     

    What is the value that you’d be leveraging from this partnership?

    Globally if you see, there are clients like GM, Nokia, Philips and others who have operations in 60-70 countries and they are aligned with Aegis Media. I see tremendous opportunities there. As for us, we are a 140-people agency which makes us the largest digital agency in the country. So with the clients we have and with the kind of team we have in the enterprise sector, I see it as a perfect marriage of the two. I see tremendous value in the venture.

     

    How have clients responded to this move of yours?

    I had spoken to clients even before this venture and they seemed pretty positive about it. Also there is no change as such in the team and talent, so there was a comfort level there. Generally they are happy with the merger.

     

    Do you see the gap between digital and advertising being bridged?

    If you ask me the demarcation between digital and conventional media will probably go away. This is going to be an advertising agency and digital is going to be an integral part of the advertising medium, probably the largest. Demarcation is something that we have created for ourselves but it is about giving out advertising solutions.