Anupriya Acharya, CEO – South Asia, Publicis Groupe was elected President of Advertising Agencies Association of India (AAAI) for the year 2020-21 at its Annual General Body Meeting held in Mumbai on Monday. Ashish Bhasin, President of Advertising Agencies Association of India( AAAI), handed over charge to Acharya. Prasanth Kumar, CEO – South Asia, GroupM was unanimously elected Vice-President of the Association.
Other elected members of the Executive Committee in alphabetical order are:
Ashish Bhasin will be the ex-officio member of the AAAI Executive Committee for 2020-21 as its immediate past President.
Said Acharya: “It’s a tremendous honour and also an enormous responsibility to be elected as the President of such a prestigious organisation. I am acutely aware that our industry, like the rest of the world, has just witnessed the most unprecedented times and it’s a difficult time for most. The pandemic has only underscored the relevance of the collective thinking and the heightened role that AAAI can play. I will strive to do my best to further the interests of the advertising industry and take AAAI to greater heights as we emerge into the new normal. Many top advertising professionals have contributed very selflessly and relentlessly to the AAAI, both with and without executive positions. And that is what inspires me immensely as I take on this position. Many thanks to Ashish Bhasin for his leadership in the last two years as President – he has made great progress in making the association more inclusive, diverse and future-ready. Also, thanks to all the Executive committee members and the secretariat for all the learning they have given me in the past many years”.
Added Bhasin: “I have had the privilege to lead AAAI for two years as its president, I wish to thank all my fellow executive committee members for their wholehearted cooperation and valuable support. I would also like to congratulate Anupriya Acharya on her election as President. Anupriya has been a key member of the Indian media and advertising industry for a long time. I’m sure she will play a stellar role in taking forward the Association and its work. I wish her the very best for this role.”
The Advertising Agencies Association of India today announced that this year’s AAAI Lifetime Achievement Award will be conferred upon Krishan Premnarayen, Senior Partner, Prem Associates Advertising and Marketing. This is the highest honour to be given to an individual in India for his/her outstanding contribution to the Advertising Industry.
Premnarayen was the youngest President of AAAI when he took charge as President in 1988 at the age of 36 years.
Making the announcement, Ashish Bhasin, President, AAAI, said: “Krishan Premnarayen, besides being the youngest ever President, made very significant contributions to the industry. It was during his tenure that the foundation was laid to make AAAI the legitimately recognized body for our industry across constituencies. He must also be given due credit for vastly strengthening AAAI’s relationships with the media industry – including while he was at the helm of ABC and NRSC. He is truly deserving of this honour”
Added Nakul Chopra, Chairman of the AAAI Lifetime Achievement Award Selection Committee: “It gives me immense pleasure that this year’s Committee unanimously decided to confer this richly deserved honour on Krishan. His manifold contributions to the industry have played an important role in helping strengthen both our industry and our Association over many years. Even after he was no longer directly active with AAAI he continued to go out of his way to help, whenever called upon for an industry cause. It is somewhat fitting that he is being conferred an award, the inception of which, dates back to his own tenure as President AAAI. He richly deserves this award, my heartiest congratulations to him.”
Everyone has been witnessing with growing alarm the spread of the coronavirus across the globe and in India. Our Country has been on a lockdown for a few weeks now and Governments, both Central and the States, have taken many effective steps to reduce the impact of this pandemic.
But all this is coming at a huge economic cost. The Advertising Agency business, like many other businesses have been seriously affected. The bulk of the agency’s costs are fixed in nature, be it Salaries, Rent, Electricity, Communication, Upkeep, Media Audience measurement reports, etc. The income and cash flow has been in serious stress in the last month and unless there is some intervention, many businesses will either file for bankruptcy or will have to undersize considerably.
Ashish Bhasin
While the Indian Newspapers Society and Indian Broadcasting Federation, the media associations representing the interest of print and television edia respectively, have permitted AAAI members to pay monies they have collected from their clients and not insist on what is due to them on the due dates, the continuity of the agency business cannot be for long without the help of the Government of India, note a commuique from the Advertising Agencies Association of India. In this regard, Ashish Bhasin, President of AAAI, has sent a detailed set of recommendations on behalf of the members of AAAI to the Union Minister of Information & Broadcasting Prakash Javadekar. In this he has stressed the importance of advertising industry for the accelerated revival of the economy.
“What we have asked the Government is very reasonable. We want principally money that is owed to us by way of IT & GST refunds, and dues from Government and PSUs for our advertising bills to be settled immediately. We have also said that any payment made to us should not suffer any TDS deduction going forward, since there is unlikely to be any significant profit for the year. Further we have sought a direction to banks and our debtors that they provide the much needed cashflow to pay salaries and meet other essential expenses, etc,” said Bhasin, adding: “These do not lead to any revenue loss to the Government. They just need to show a kind heart. The timely help they will provide actually is the help they are providing to the people of India, since advertising is a critical input that can provide a ripple effect in reviving many sectors of the economy.”
One other recommendation made is to treat advertising expenses as an investment and have this cost amortised over the next three years. AAAI believes this will encourage larger advertising outlay which will help revive the economy faster. In the same vein, AAAI also suggested that advertising expenses could be given weighted deduction while computing taxes. The suggestion was that every Rs 100 spent on advertising, should be treated as Rs 200, while computing the taxable income.
A cross-section of the industry reacts to Nirmala Sitharaman’s maiden Budget
Girish Menon, Partner and Head, Media and Entertainment, KPMG in India
Although there was no direct reference to the media and entertainment sector in Budget 2020, the focus on improving India’s digital connectivity bodes well for the sector. The Honourable Finance Minister’s announcement that an amount of INR 6,000 crores will be spent on BharatNet initiatives will see more citizens connected to the proposed pan-India FTTH network. Media and entertainment is increasingly becoming a digital medium and an enhancement of the underlying digital communications infrastructure will support more immersive experiences. Finally, the focus on building a vibrant start-up ecosystem with measures to improve access to funding and IP protection will help India emerge as a global hub for technological innovation.
Rakesh Jariwala, Partner – International Tax Services, EY India
Removal of exemption on sale, distribution and exhibition of cinematograph film will subject theatrical revenues to domestic withholding tax considerations and could pose working capital considerations for already funding constrained film industry. Amendment of source taxation rule to include advertising income relating to customer based in India while global consensus is being formed on digital taxation rules may result in short term pain for the foreign businesses which do not have access to a tax treaty. Reduction of withholding tax rate on technical services to 2% will provide relief on potential rate related disputes on production services. Reduction in import duty of news print should help the ailing print businesses.
Ashish Bhasin, CEO, APAC and Chairman, India – Dentsu Aegis Network:
I think this is a good budget in some ways because it has attempted to put money in the hands of the middle class through rationalisation of tax rates as well as has concentrated on looking after the agricultural sector, including introduction of best practises like storage for producers and other measures. However, I do feel that the expectations from the budget were much more and it does feel like a bit of a missed opportunity.
While it is good to see that the dividend distribution tax has been abolished, I expected more on the rationalisation of direct taxes, particularly the cess introduced over and above the tax rates.
It is good to see efforts being made to encourage new-age skill development as well as helping the start-ups and what’s particularly interesting is the proposal to set up data centre farms all over the country. This will prepare India for the economy of tomorrow. It is also good to see attempts at simplification of taxation through digitisation but the proof of the pudding will lie in seeing its implementation on ground.
It would be fair to say that at best it is a mixed budget and while there are some encouraging decisions, enough does not seem to have been done for the situation the economy is in.
Karan Darda, Executive Director, Lokmat Media Group:
We welcome the proposed reduction in custom duty on import of newsprint and light-weight coated paper. In recent years, newspaper industry has been facing many headwinds and the environment has overall been very challenging. 10% customs duty was introduced last year and that added to the burden. The reduction in customs duty would ease the burden and help the industry in this critical juncture.
The budget has provided relief to middle class with lower tax rates which is a welcome move, as it will provide more liquidity. On direct taxes, the abolition of DDT and introduction of a tax dispute resolution scheme is a welcome step alongside tax reliefs for startups.
The budget is focusing on easing and simplification of compliance, with changes in corporate laws as well as in GST and direct taxes. However, I was expecting further simplification of cess and surcharges beyond tax rates across slabs.
The proposals for development of road infrastructure, setting up data centre parks and skill development initiatives are welcome steps in addition to allocations for social welfare schemes.
However, the expectations from the budget were high on the background of current economic slowdown, and as such seems to be short on matching those expectations, with no specific industry sector focused sops to provide stimulus. While the budget shows focus on long term growth and social development, overall in the current scenario it looks like a mixed budget, falling a bit short of market expectations of more corrective measures.
Gautam Sinha, CEO – Times Internet:
Budget 2020 is a promising step towards establishing India’s future as an enduring digital economy. The increased focus on improving data connectivity under Bharat Net, steps to boost the smartphone manufacturing industry and the Rs 8,000Cr allocation for the National Mission on Quantum Computing & Technology will help build better digital infrastructure to support this sector’s rapid growth. Finally, deferring tax on ESOPs for startups is also a major move that will help promising startups attract and retain talent that would fuel our burgeoning digital ecosystem.
Redickaa Subrammanian, Co-founder and CEO, Resulticks:
Digital disruption has transformed India’s business landscape and the announcement for building more data centre parks will further aid in laying a strong foundation for a digitally connected country. INR 8000 crore allotment for developing quantum technology is impressive, and this in tandem with the grassroots level skilling initiatives, make for a strong technology ecosystem. Engineering students will also gain real-world experience through the new internship programs, creating a digitally skilled talent pool equipped to work in a digital economy.
As a fast-growing AI and ML based technology start-up, we welcome setting up of the investment clearance cell. The proposed revisions in the income tax structure should lead to increased consumer demand and provide an overall impetus for economic growth in India. The announcement made in Budget 2020 showcases the government’s support for India’s technological advancement and we are excited about the entrepreneurial spirit it promotes.”
Prashan Agarwal, CEO – Gaana:
We appreciate the efforts of the government to boost the digital ecosystem in the country. The increased focus on improving connectivity under the Bharat Net scheme and the emphasis on Artificial Intelligence will allow OTT players to offer bespoke and personalised solutions to consumers. Additionally, the impetus to the smartphone manufacturing industry will make internet consumption accessible to a wider section of Indian society that will expand the scope of revenues for OTT players. The allocation of Rs 8000 crore for setting up the National Mission on Quantum Computing and Technology will also boost the development of the industry by making resources cost-effective.
Mitesh Shah, Head of Finance, BookMyShow:
At the onset, we would like to laud Government for growth driven budget. We welcome the progressive policies aimed at encouraging rural demand, changes in personal taxes spurring consumption and impetus to infrastructure development, measures aimed at bolstering growth and reverse slowdown. Additionally, taxation related on ESOPs as perquisite and removal of DDT are significant moves. However, the benefits of taxation relief on ESOP should be expanded to companies at various stage of growth.
Compliance on e-commerce has been increased by mandating them to deduct TDS @1% on all goods and services sold on e-commerce platforms. This would be in addition to TCS under GST and this amendment might further increase the cost of compliance for e-Commerce companies. Government’s vision to build data centre parks, allocation towards quantum computing and its focus on using artificial intelligence in statistical and other government departments will take India’s growth story to the next level.
Increase in compliance on e-commerce by mandating deduction of TDS @1% on all goods and services sold on e-commerce platforms. This would be in addition to TCS under GST and this amendment might further increase the cost of compliance for E-Commerce companies. Government’s vision and focus on investing in new age technologies to build data centre parks, allocation towards quantum computing and its focus on using artificial intelligence in statistical and other government departments will certainly give an impetus to ‘Digital India’.
Kunal Bahl, CEO & Co-founder, Snapdeal:
Thankful to the Hon’ble FM for accepting the start-up sector’s request for ESOP taxation reforms. Also, the higher time & turnover limits for carry forward of losses for start-ups will enable them to optimize growth decisions in formative years.
Overall, Budget 2020 is a thoughtful weaving together of specific proposals to tackle varied issues. Measures to improve access to finance for MSMEs and reduced taxation for the middle-income segment are welcome steps. Boosting physical infrastructure, expanding digital connectivity and growing use of technology in government functioning are important building blocks for the long-term growth of the Indian economy.
The Advertising Club and the Advertising Agencies Association of India (AAAI) have come together to launch a communication programme that will address the issue of violence against women in society. The special campaign will be a part of the upcoming edition of Goafest 2020. The winning campaign will be crowned with the newly instituted special award ‘The Red Abby’ that celebrates the woman and her spirit.
Speaking about the initiative, Ashish Bhasin, President – AAAI, said: “Violence against women is an issue that has been a significant area of concern. It is critical that we as an industry that is responsible and renowned for driving awareness and building perceptions, use our collective capabilities for the betterment of society. We hope that this initiative will help us put together a high impact campaign that will empower women and help change mindsets.”
Added Partho Dasgupta, President – The Advertising Club ” I strongly believe that it is imperative that everyone from the industry comes together and leverages our circle of influence to bring about positive social change. “
The headline was digital media is expected to cross the Rs 50k crore mark by end-2025. But, then, there was a lot more in the report. Here are key highlights and takeaways:
Anand Bhadkamkar, CEO, Dentsu Aegis Network India: “2019 was a challenging year for the Indian advertising industry as well. With the economic slowdown, advertisers decided to cut back on spends, consumers decided to wait-and-watch, market sentiments reached a new low and India’s Ad Expenditure (AdEx) witnessed a consequential fall. But even in the midst of it all, digital continued to grow. Digital is a masterstroke in advertising and Dentsu Aegis Network recognizes this strength. We also recognize the need for an industry level report that can give directions toward which this industry is moving. While with every new edition, the DAN Digital report has been upping its rank in quality, range and comprehensiveness, we welcome sincere feedback and inputs from the entire industry to help establish a robust eco-system for this fast growing and increasingly important industry channel, so that all of us can progress together!”
Ashish Bhasin, CEO, APAC and Chairman, India – Dentsu Aegis Network: “The Media and Advertising industry is shifting at a rapid speed and Digital is certainly taking charge. Consumers are leaving behind huge digital footprints and there is a lot more emphasis on managing data and developing martech capabilities, now. 2020 is expected to witness a major change in advertising in India, with digital becoming a bigger medium. In fact, by 2021, it’s growth should surpass that of print. Yet, despite this progressive swing, the industry has failed to come together to agree upon a common measurement metric for digital. As leaders in digital, Dentsu Aegis Network today stands at the forefront of this evolution and understands the need to have more information on Digital. The DAN Digital report, now in its fourth edition, is exhaustive, systematic, thorough and meets this need gap brilliantly. The report has now become the most credible source of information when it comes to digital in India.”
1. The Indian advertising industry has grown at a rate of 9.4% over 2018 to reach Rs. 68,475 Crore by the end of 2019. The industry will grow by 10.9% to reach Rs. 75,952 Crore by the end of 2020. It is expected to grow at 11.83% CAGR to reach a market size of Rs. 1,33,921 Crore by 2025.
2. By the end of 2019 the digital advertising industry stands at Rs. 13,683 Crore, up at a rate of 26% from Rs. 10,859 Crore in 2018. It is expected to grow at 27% to reach Rs. 17,377 Crore by the end of 2020.
3. Advertising spends on Digital media is expected to grow at a CAGR of 27.42% to cross the Rs. 50,000 Crore mark and reach an industry size of Rs. 58,550 Crore by the end of 2025. This sustained growth can be attributed to the technological advancements, improvements in data science & analytics, introduction of policies & regulations among others.
4. Television takes the largest share of media spends at 39% (Rs. 26,869 Crore) followed by print media (29%, Rs. 20,110 Crore) and Digital Media (20%, Rs. 13,683 Crore). In the year 2020, spends on Television media is expected to grow at 10% and its share will remain steady while that on Print media is expected to grow at 3% with this share declining to 27%.
5. Across various industry verticals, FMCG sector spends the highest by contributing 30% (Rs. 20,182 Crore) to the advertising industry. Next to FMCG stands with 10% contribution by E-commerce (Rs. 6,915 Crore) followed by Automotive sector (8%, Rs. 5,797 Crore).
6. Among the various industry segments, FMCG has the highest expenditure on advertising i.e. 30% (Rs. 20,182 Crore) followed by E-commerce (10%) and Automotive segment. FMCG spends a large majority of their advertising budget on television (61%) while Retail, Automotive and Retail spend a large share of their advertising budget on Print. The biggest spenders on digital media are BFSI (42%), Consumer Durables (38%) and E-commerce (37%).
7. Advertising spends on Digital Media is led by Social media with the highest share of 28%, contributing Rs. 3,835 Crore to the Indian digital advertising pie. This is followed by spends on Paid search (23%), Online Video (22%) and Display media (21%). Display media, online video and social media are expected to have the fastest growth in 2020. The share of paid search is expected to reduce from 25% to 23% by the end of 2020.
8. FMCG segment spends a large share of their digital media budget on online video (36%), while E-commerce, consumer durables spend a mostly on paid search and social media.
9. By 2020, advertising spends on Mobile devices is expected to grow by 41% to have a share of 52% to the digital advertising market, overtaking spends share on Desktop. Furthermore, the expected spends on mobile devices will reach a share of 64% by 2022.
10. Advancements in marketing technologies and subsequent fusion with marketing creativity, along with the advent of 5G technology and increased adoption of E-commerce advertising will lead to the evolution of content for the next 500 million Internet users, thereby catapulting the digital media industry towards the Rs. 50,000 Crore milestone by the year 2025.
Yes, the day is drawing closer. Just eight months to go for the 2019 MxMIndia Mediaperson of the Year award. The selection process has been done. We have had five rounds of shortlisting and now are waiting to see if a new star emerges over the next few days.
As MxMIndia readers are aware, over the last few years, the MxMIndia Mediaperson of the Year has earned the reputation of being one of the more credible barometers of the highest performer(s) in the fields of advertising, media and marketing in a calendar year.
Last year’s winner of the accolade was Piyush Pandey on his rise and rise in the global creative world. In 2017, it was Arnab Goswami for the launch of Republic TV. In 2016, we had Dentsu Aegis Network South Asia CEO Ashish Bhasin and for 2015 it was the BARC India core team of Punit Goenka, Shashi Sinha and Partho Dasgupta.
Any guesses on who it will be this year? Wait for it. 10.20am. Friday, December 20, 2019
In a significant move, the Advertising Agencies Association of India (AAAI), the official apex national organisation of advertising agencies, has opened its doors to digital agencies by allowing them to be full-fledged independent members. This will in particular benefit standalone, independent digital agencies which were left out from the AAAI as membership was only open to creative, media and full-service agencies. Membership to the AAAI not only helps protect their interests, and gives representation on industry forums, but also benefits the larger digital marketing ecosystem, a communique adds
Ashish Bhasin
Said Ashish Bhasin, President, Advertising Agencies Association of India: “In order to future-proof AAAI it is absolutely essential to include the digital agencies as our members since digital is an important and ever increasing part of our industry. With this in mind, Anupriya Acharya was nominated by the Executive Committee of AAAI to drive the Digital Media Forum, which has now resulted in the opening up of Membership for the Digital Agencies to become full-fledged members of Advertising Agencies Association of India, for the first time in our 75 years of history as an association. On behalf of AAAI, I welcome the Digital Agencies to our membership fold and thank Anupriya Acharya for driving this initiative”
Anupriya Acharya
Said Anupriya Acharya, AAAI Vice-President: “With digital advertising becoming so mainstream, there are many digital agencies operating in this space now. Hence, it is important that AAAI begins incorporating these too, to be truly representative of the current industry environment. In order to enable greater participation from the digital agencies, we created the first-ever Digital Agency Forum wherein we got key leaders from digital agencies of existing AAAI members to identify important areas that are unique to the digital agencies and find solutions to address some of their challenges and opportunities.”
According to an AAAI communique, the Digital Agency Forum will focus on areas such as account shift protocols, viewability standards and audience metrics, relationships with digital bodies, best practices, commercial norms, talent and training, to begin with, but will expand its role as it grows.
Less than 50 days to go for the most prestigious award for an advertising/ media professional in the country. Forty-three days to December 20. We have had three rounds of shortlisting already, and now the final one will happen later this month (November).
It’s a tough selection this year, is all that we can say. There are many, many achievers, but there are a few who stand tall. And one of them will be the 2019 MxM Mediaperson of the Year.
As industry persons are aware, over the last few years, the MxMIndia Mediaperson of the Year has earned the reputation of being one of the more credible barometers of the highest performer(s) in the fields of advertising, media and marketing in a calendar year. The quarterly assessment ensures that we don’t miss out on a super achiever of the first quarter.
Last year’s winner of the accolade was Piyush Pandey on his rise and rise in the global creative world. In 2017, it was Arnab Goswami for the launch of Republic TV. In 2016, we had Dentsu Aegis Network South Asia CEO Ashish Bhasin and for 2015 it was the BARC India core team of Punit Goenka, Shashi Sinha and Partho Dasgupta.
So who do you think will it be this year?
Having said that, we have a few days before the final selection, so if you’d like us to consider any name, write to us at editor [at] mxmindia.com or even call or whatsapp the editor – Pradyuman Maheshwari, if you have our coordinates.
The 16th edition of Goafest, the marquee eent of the Advertising Agencies Association of India (AAAI) and The Advertising Club will be held from April 2 to 4, 2020. The venue is the same as has been in the last few years – the Grand Hyatt hotel.
Nakul ChopraShashi Sinha
Veteran adperson Nakul Chopra has been appointed Chairman of the Goafest 2020 Organising Committee and Jaideep Gandhi will be Co-Chair. Shashi Sinha has been elected as Chairman of the Awards Governing Council for the ABBY Awards 2020.
Speaking about the 16th edition of Goafest, Ashish Bhasin, President of AAAI said: “Year-on-year, it is our endeavour to make Goafest the most sought after gathering of the Indian
Jaideep Gandhi
Advertising & Media industry both in terms of knowledge sharing and raising the bar for creativity. Goafest has been consistently putting India on the global map of a creative powerhouse and as we put together this edition as well, our endeavour is to bring the best of speakers, workshops and experiences to boost the next-gen of advertisers,” adding: “Nakul as an industry veteran has been adeptly handling Goafest and his vision for the industry is sure to translate into an engaging and inclusive festival experience for all.”
Speaking about the focus of the 2020 edition of Goafest, Partho Dasgupta, President, The Advertising Club, added: “The purpose of Goafest is to bringforth a platform that encourages India’s A&M industry to engage, innovate and share cohesively. The 3 days of Goafest sees the entire media and advertising fraternity breaking the barriers of organisation and come together to share common achievements, failures and learnings. ABBYs have always been recognised as the gold standard in creative awards and with Shashi at the helm, we are sure that the awards will continue to follow the highest standards of quality and due diligence.”
Said Chopra on being re-elected as Chairman for the festival: “Goafest is the only premier festival that is a holistic representation of the Indian advertising and media industry. Our focus continues to remain on driving up the ante of scale, inclusivity knowledge sharing. The 2020 edition of Goafest will also focus on creating an experience that is immersive, transformational and continues to contribute to the enrichment of the Advertising, Media and Entertainment industry.”
On being re-elected as the AGC chair, Sinha said: With the ABBY Awards, every year we try to widen the horizon and be more inclusive. Our belief has been to let works of excellence do the talking and this year too we will continue to look for campaigns that inspire change, make a difference and become an inspiration for the industry.”
The Awards Governing Committee for ABBY Awards includes:
Shashi Sinha (AGC Chairman), CEO – IPG Media Brands
Ashish Bhasin, CEO- APAC, Dentsu Aegis Network
Nakul Chopra, Chairman, Goafest and immediate past President AAAI
Jaideep Gandhi, Director, Jaya Advertising
Anupriya Acharya, CEO India, Publicis Media
Rana Barua, Group CEO, Havas Group India
Ajay Kakar, Chief Marketing Officer, Aditya Birla Capital
Partha Sinha, Vice Chairman and MD, McCann Worldgroup
Virat Tandon Group, CEO, MullenLowe Lintas Group
Ajay Chandwani, Director, Percept Limited
Raj Nayak, Media Veteran and Founder, House of Cheer
The Advertising Agencies Association of India (AAAI) and Subhas Ghosal Foundation (SGF) has that announce the 2019 Subhas Ghosal Memorial Lecture will be delivered by Uday Shankar, President, The Walt Disney Company Asia Pacific and Chairman, Star and Disney India on Monday, November 11 in Mumbai. Shankar will speak on “Why have I been in media for 30 years” and take the audience through his journey in the media and entertainment industry over the past three decades.
Said Ashish Bhasin, President, AAAI: “We are very happy that Uday Shankar will be delivering the AAAI Subhas Ghosal Memorial Lecture 2019. As a captain of the industry, Uday perhaps has the best visibility to all the facets of the broadcast and OTT industry and we look forward to hearing his views. I must also compliment Sam Balsara on behalf of the AAAI for driving this initiative with great gusto”.
Added Balsara, on behalf of SGF: “In a rapidly changing advertising world, TV continues to dominate ADEX and grow at a double digit rate. It will be interesting to hear Uday Shankar’s views on how the TV Industry has carved out a dominant share for itself in the advertising market and plays a very major role in the lives of majority of Indians, through the absorbing stories, that it puts out every day, 24 X 7.”
At mid-afternoon on Thursday, in a cool, rainy climes of Khandala near Mumbai, the top deck of the Dentsu Aegis Network had gathered. While they had seen the rise of the Network in India, the announcement was perhaps the best recognition of their work in the last decade-odd. Their leader – Ashish Bhasin – had been appointed CEO of Dentsu Aegis Network APAC. And APAC included the key markets of China, Australia and New Zealand. He will will join big boss Tim Andree’s Global Executive Team, the first and only Indian to occupy the chair. Bhasin will continue to maintain his role as Chairman, Dentsu Aegis Network India. Meanwhile, Anand Bhadkamkar, COO India and CFO South Asia, has been promoted to CEO, Dentsu Aegis Network India. He will report to Bhasin, as earlier.
Bhasin, who was MxMIndia Mediaperson of the Year in 2016, spoke with us over the phone from Khandala. While the clouds were out there in the Western Ghats as also in Mumbai where we are located, the sun was shining very brightly for Bhasin and the Indian advertising industry.
Read on…
Congratulations. Your elevation as CEO of Dentsu Aegis Network Asia Pacific is huge. Your sentiment as you move on to Singapore to take on the role?
Thank you. If the company trusts you with a bigger responsibility, it obviously makes you feel good. First off, I feel it is actually credit to the fantastic team we’ve had pan-India. This has been a dream run of sorts. We started with 40-50 people and today we are almost 3700-3800 people. At a time when everybody is struggling, the markets have slowed down, etc, we have continuously been the fastest growing group in India for maybe five years in a row. It feels good because all of that is in some way recognising India’s performance and from India’s point of view, I think it is a nice reflection on the team and on the country.
If you have to look back, what would you say would be the single biggest achievement since you helmed DAN in India?
I think two things: One is that I was very lucky that I was able to build and retain a fantastic leadership team. If you look at the senior leadership of Dentsu Aegis Network, while the turnover rate is very high in India, in the last 11 years ever since we started this journey, not one single leader at the senior level has left us. Everybody who has been with us, and who we wanted in our team, was in our team 11 years ago and is today in our team too. In fact more got added as time went by. I think building that cohesive world class leadership team is something that I will always be proud of and I will always rate it as one of the best things that we managed to do.
The other thing was taking this call on digital – to invest in digital in a big way. In India, no one else was looking at it and in many ways because of that we got a huge head-start over our competition. Of course eventually everybody is trying to play catch up and will do so over a period of time but that gave us market leadership. Digital was the fastest growing part in the advertising industry…
Acquisitions have been a significant feature of your tenure, right?
Yes, of course. That has been an integral part of my strategy. I’ve always said 50% of my growth should be organic and 50% should come from acquisitions because acquisitions are only about money. They also bring in fresh talent. Some of the best talent in the country whom we would never have been able to hire as employees, but we were able to bring into our group thanks to the acquisitions.
And you have been able to retain them..
People like Vivek Bhargava as an example.
Right.
So these are all very senior leaders and have finished their earnouts and have done very well in life, and they still continue to run their companies many years after that exactly the way they used to right from the first day when they started,
And Aggie (Agnello Dias) and Paddy (Santosh Padhi)
Yes, and Aggie and Paddy. We managed to create an environment where we give our leaders enough space, One thing that people forget is that for an entrepreneur, it’s more than just money. Money is very important but it is your baby… it’s your life, right? Nobody can run Taproot better than Aggie and Paddy, nobody can run Communicate 2 better than Vivek, nobody can run Sokrati better than…
True.
And so on and so forth. So, we allowed them that, but the challenge is the need to align people as a group because we are now 23 different agencies all moving in same direction. I think we achieved that pretty well and I am very proud of the fact that even after their earnouts are over, all these fantastic leaders continue to run their businesses even more successfully than they did when they were standalone entrepreneurs.
Is there something that you would’ve possibly liked to have happened differently?
Yes, I think, it is quite clear to me now that we were significantly better than our competition. We were way ahead because even though our competition was well-established, very big, etc, we still managed to beat the hell out of them and gain huge marketshare. I think I could have been a lot more aggressive… I should have been even more aggressive because we were really faced by very weak competitors who were still caught in a legacy world and who missed this digital revolution. We grew very fast, maybe we should have grown even faster.
Since your move as APAC head requires a relocation to Singapore even though you continue to be chairman of India, how much time will spend here in India?
I am doing the Greater South role already and I am travelling a helluva lot.
But this has a bigger footprint.
So, there won’t be any significant change in the number of days that I am spending in India. I do intend to spend at least a week every month here. I will be retaining my office in India and I will be actively involved in India. But I will be much less involved in the running of day-to-day operations which now we have a new CEO in the form of Anand (Bhadkamkar) who has been involved in this journey from Day 1.
So I am not going away. I am not leaving, in fact I will probably spend as much time in India as I am currently. I am travelling 15-20 days in a month. Given that it’s a region as large as APAC with countries from Australia, New Zealand on one end, and China to Taiwan, Korea, South East Asia, etc. and because our regional center is there, Singapore is the most appropriate place to do that.
Anything that you hope to achieve immediately as Densu APAC CEO?
There are some inherent advantages we have as a group. We can bring all market communication services to the client, so one P/L which was very instrumental in our success in India. And then there is our approach to be digitally ahead. I see no reason why we can’t do this very, very well in every single country.
Back home, you’ve just taken charge of your second year as President of the Advertising Agencies Association of India (AAAI). Are you going to continue with that?
Well, coincidentally we also have our Board meet on Friday. So I will definitely inform my EC (Executive Committee) about the change. And I will go by whatever they decide – whether they would want me to continue my term or not.
The Announcement:
Dentsu Aegis Network today announces the appointment of Ashish Bhasin, CEO, Dentsu Aegis Network Greater South into the newly created role of CEO, Dentsu Aegis Network, APAC, effective immediately. Based in Singapore, he joins the Dentsu Aegis Network Global Executive team and will report into Takaki Hibino, Executive Chairman, Dentsu Aegis Network APAC. Takaki’s role as Executive Chairman, APAC remains the same.
This move further cements the recently announced Cluster Structure; Greater North, Greater South and ANZ in APAC, giving the markets and their leadership teams greater focus on identifying and moving into key growth opportunities. Ashish will focus on accelerating this growth while delivering greater operational rigor and leadership excellence across the region. These changes reflect evolving market dynamics across the region, mitigating the disruption that new entrants, shifting consumer demands and technological evolution creates by focusing on delivering long-term, sustainable growth for our clients. Ashish will maintain his role as Chairman, Dentsu Aegis Network India.
Commenting on Ashish’s elevation, Takaki Hibino, Executive Chairman, Dentsu Aegis Network APAC said: “Ashish’s appointment is critical for the region; enabling the markets to focus on client needs and growth opportunities while delivering operational rigor for the business. He was a clear candidate from the start with a proven track record of delivering long-term and consistent growth. Under his leadership, the business in India is now the second largest Advertising & Media organisation by revenue in the market. His long-term vision coupled with his acumen for identifying an opportunity is one of the best in the business, and I am delighted he will join me in leading the business in APAC.”
Ashish Bhasin, CEO, Dentsu Aegis Network APAC commented: “I am thrilled to be taking on this new role within the APAC region. There is never a more exciting time to be in this business; our competitive landscape is becoming more complex and fragmented while our clients are crying out for long-term vision and simplicity. We have to keep their needs as our North Star whilst delivering long-term, sustainable growth for our business. We are in a unique position to build propositions around our client needs, and I look forward to this next chapter in the transformation journey of this region.”
Anand Bhadkamkar
In India, Anand Bhadkamkar, erstwhile COO India & CFO South Asia, has now been promoted to CEO, Dentsu Aegis Network India. Anand will continue to report to Ashish Bhasin in his new role.
Anand Bhadkamkar, CEO, Dentsu Aegis Network India commented: “I am extremely excited and honoured to take on this new responsibility. I look forward to embarking upon a new chapter in my career and work with Ashish as the Chairman of India to continue building DAN into the country’s most innovative, future-proofed market-leading network. Our One P&L philosophy and our leadership status in Digital sets us up in the best position versus our competitors.”
In addition, Masaya Nakamura, Deputy Chairman & Chief Growth Officer, APAC has taken a new role as CEO, Global Solutions, Dentsu Aegis Network, based in Tokyo. Prakash Kamdar, CEO, Isobar Singapore has been promoted to CEO, Dentsu Aegis Network Singapore.
Anupriya Acharya, CEO – South Asia, Publicis Groupe was elected President of Advertising Agencies Association of India (AAAI) for the year 2020-21 at its Annual General Body Meeting held in Mumbai on Monday. Ashish Bhasin, President of Advertising Agencies Association of India( AAAI), handed over charge to Acharya. Prasanth Kumar, CEO – South Asia, GroupM was unanimously elected Vice-President of the Association.
Added Bhasin: “I have had the privilege to lead AAAI for two years as its president, I wish to thank all my fellow executive committee members for their wholehearted cooperation and valuable support. I would also like to congratulate Anupriya Acharya on her election as President. Anupriya has been a key member of the Indian media and advertising industry for a long time. I’m sure she will play a stellar role in taking forward the Association and its work. I wish her the very best for this role.”
Anand Bhadkamkar, CEO, Dentsu Aegis Network India: “2019 was a challenging year for the Indian advertising industry as well. With the economic slowdown, advertisers decided to cut back on spends, consumers decided to wait-and-watch, market sentiments reached a new low and India’s Ad Expenditure (AdEx) witnessed a consequential fall. But even in the midst of it all, digital continued to grow. Digital is a masterstroke in advertising and Dentsu Aegis Network recognizes this strength. We also recognize the need for an industry level report that can give directions toward which this industry is moving. While with every new edition, the DAN Digital report has been upping its rank in quality, range and comprehensiveness, we welcome sincere feedback and inputs from the entire industry to help establish a robust eco-system for this fast growing and increasingly important industry channel, so that all of us can progress together!”
