MxMIndia

Tag: Publicis

  • The merger of holding companies Omnicom and Publicis Groupe is quite simply the biggest news in the history of the marketing communications industry. The jury is out on what this means for India, a market where WPP is a clear leader.

    Omnicom-Publicis merger likely to reshape advertising industry in India

    By Ravi Balakrishnan

     

    The merger of holding companies Omnicom and Publicis Groupe is quite simply the biggest news in the history of the marketing communications industry. Speculation is rife that former global market leader WPP (which owns O&M, JWT and Grey among others) or the resurgent Japanese giant Dentsu will now make a tempting offer to Interpublic (the holding company for McCann Erickson, Draft FCB and Lowe). But it’s still not going to be anywhere near the scale of the world’s second- and third-largest marketing communication giants joining forces.

     

    The jury is out on what this means for India, a market where WPP is a clear leader. An agency CEO who prefers to remain anonymous says that one of the fallouts is to make Omnicom and Publicis at least as large as if not larger than Interpublic in India. While struggling overseas, Interpublic agencies like Lowe Lintas and Draftfcb+Ulka, with a portfolio of homegrown business, are among the larger agencies in the country.

     

    Publicis Groupe’s Leo Burnett and Publicis are solid performers, but Saatchi & Saatchi is counted a laggard. The Groupe’s key media brand Starcom MediaVest is perceived to have lost steam over the years. After almost a decade trying to crack India, Omnicom now has a strong flagship in DDB Mudra. While BBDO has done well on allied clients, it’s had limited success at picking up non-network business. While globally a creative powerhouse, TBWA is again among the smaller shops in India. Counted among the fastest growing media agencies in the country, OMD does not have the size of WPP’s Group M or even independent media outfit Madison.

     

    Praveen Kenneth, chairman, Law & Kenneth, believes getting more global media muscle is perhaps the key reason for the merger: “They are not doing this to maximise or reduce people but so that they can negotiate with media better since that’s the only way agencies can earn. While they are both doing well, they need to do this if they want to make the next five years better.”

     

    While much is being made about the potential conflict of interest, that’s not as serious an issue as it used to be. All the holding companies have case studies to prove that rival brands can be handled by different agencies owned by the same entity with no problems.

     

    Rohit Ohri

    Where industry insiders anticipate friction is in the structure of the group. Says Rohit Ohri, executive chairman of the Dentsu group, “Both these companies don’t have scale in India. This will give them scale but it will be interesting to see how they are structured since they are completely different. In a network that has competing agencies, what is the synergy and value you get will be the big question.”

     

     

     

    Manish Bhatt

    The culture problems run deep since Omnicom is an all American holding company while Publicis wears its French connections on its sleeve. On a more workaday basis, reporting structures are expected to be a stumbling block. As Manish Bhatt, founder of independent agency Scarecrow points out, “This is not an industry where people retire and so issues like which creative reports to which suit can create complexity.”

     

     

    Sajan Raj Kurup

    The merger is not yet cause for fear mongering among the independent agencies – at least not just yet. Says Sajan Raj Kurup, founder and creative chairman, Creativeland Asia, “The strength of independents will grow post this deal. When two giants collide, you always have little fragments emitted out. Some big guys will pack up and start on their own. The only repercussion of this consolidation deal would be more fragmentation.”

     

    For the foreseeable future though, Publicis Omnicom Group is the advertising industry’s proverbial unassailable 1,000 pound gorilla, a position that WPP held till just last Saturday.

     

    Source:The Economic Times

    Copyright © 2013, Bennett, Coleman & Co. Ltd. All Rights Reserved

    Licensed to republish

     

  • Publicis Groupe SA and Omnicom are reportedly in advanced level talks for a merger of equals

    Publicis, Omnicom in merger talks

     

    By A Correspondent

     

    You don’t need to pinch yourself. We do have a sense of humour but it’s no April 1 and we aren’t imagining things. New York and Paris are getting closer with ad biggies Publicis Groupe SA and Omnicom reportedly in advanced level talks for merger.

     

     

    See also:

    > Ad Age: Omnicom-Publicis in merger talks. Here’s why it seems unlikely

     

    > Daily Telegraph: Omnicom-Publicis 20 billion pounds ‘merger’ faces regulatory hurdles

     

     

    > Bloomberg: Publicis said to be in late-stage talks on merger with Omnicom

     

    It’s not the case of one gobbling up the other, but more of a getting together of equals. But it sure means some mindboggling realignments with such biggies like creative agencies Leo Burnett, Saatchi and Saatchi, Publicis Worldwide, BBDO, and DDB together. Ditto with Zenith Optimedia, Starcom, OMD, PHD. And MSLGroup, Ketchum…. some arch rivals may be part of the same flock.

     

    A senior official of one of the agencies told MxMIndia that while it’s an interesting situation at this point, such a merger will need to happen given the way the world is going.

     

    Needless to say, the combined Ominicom-Publicis entity will overtake current #1 WPP. Both companies did not comment at the time of filing this report and there have been some who have said the merger may well not happen.

     

  • In the advertising context, Pawar's return sends out a strong signal to the rest of the ad world: Take your chances, buggers. Keep encouraging scam ads, you will be rewarded.

    Anil Thakraney: And, Bobby Pawar is back.

    By Anil Thakraney

     

    Good for Bobby Pawar. The Ford scandal during his last job at JWT doesn’t seem to have dented his reputation one bit. He’s now been lapped up by Publicis, and life goes on as usual. Hopefully this time around, Pawar will set up tight controls within his agency to monitor ads created solely to win awards.

     

    Incidentally, right after the Ford howler, I had a drink with a few ad pals, and as it often happens, we ended up talking shop. Everyone unanimously agreed that Pawar will be back in action, very soon, at another large agency. No, this wasn’t the consensus because the man is talented (which he must be), but because we all felt this is what happens in India, somehow the powerful people manage to survive scandals. Look at politics, for example. Despite a series of scams, the tainted leaders remain untouched. And the few who do get sacked, find their way back into the power corridors in good time. India is a forgiving nation. So that explains it.

     

    The negative outcome of this situation, of course, is that it encourages rubbish behaviour. In the advertising context, Pawar’s return sends out a strong signal to the rest of the ad world: Take your chances, buggers. Keep encouraging scam ads, you will be rewarded. And if you do get caught with your pants down, chillax for a while, take the much-delayed holiday to that exotic location. Sooner or later you will find yourself back in the saddle.

     

    Before I wrap up, two quick points on Bobby Pawar: I don’t know the man at all, have never worked with him, haven’t even had the opportunity to say hello to him. So I have no personal grouse with him, it could have been any other creative director in his place. It is also quite possible that he had no knowledge of the controversial Ford ads created by his juniors, and therefore wasn’t personally responsible for them. Perhaps Pawar’s a great guy, and good luck to him on his new assignment.

     

    My only little problem: That it will be business as usual in the Indian ad world. Like nothing ever happened. Sad.

     

    ***

     

    PS: My shortlist for the next season of Bigg Boss. Feel free to add your recommendation: S Sreesanth, Gurunath Meiyappan, Pavan Bansal, Phaneesh Murthy, Chandresh (Jupiter) Jain, Ankeet Chavan, Mrs Ankeet Chavan, Ajit Chandela, Suresh Kalmadi, Niira Radia, A Raja, Sudipta Sen, Abhijit Mukherji, Vindoo Dara Singh, Kshitij Thakur, N Srinivasan, Varun Gandhi, Justice Katju.

     

    Anil Thakraney is a senior journalist and commentator. He is also Editor-at-Large, MxMIndia. The views expressed here are his own. He can be reached via Twitter at @anilthakraney

     

  • The acquisition triggers the launch of the Razorfish brand in India, and the move follows a number of acquisitions recently announced by Publicis Groupe

    Razorfish acquires Neev; aims to be No 1 in 18 months

    By A Correspondent

     

    Publicis Groupe announced that it has signed an agreement to acquire Neev, one of India’s leading technology services providers specialising in eCommerce, SaaS (Software as a Service) and cloud applications across web, social and mobile. Neev will be aligned with Razorfish, one of the largest interactive marketing and technology companies in the world.

     

    The acquisition triggers the launch of the Razorfish brand in India, and the move follows a number of acquisitions recently announced by Publicis Groupe and further strengthens its digital leadership globally as well as its presence in India and the greater APAC region.

     

    Kanika Mathur

    Kanika Mathur, Managing Director for Razorfish and Digitas India said, “Neev is one of the leading technology services company specialising in e-commerce and cloud applications across social and mobile. It’s more like a mini-Razorfish in India and that was what was exciting about the venture when we spoke to each other. Razorfish is all about business transformation using technology. It’s about creating new business models for clients and about providing a brilliant experience to the consumer.”

     

     

     

    Srikant Sastri

    Srikant Sastri, VivaKi Country Chair for India, who is overseeing the acquisition of Neev, said, “With the acquisition of Neev, we have added cutting-edge tech capabilities. We are now twice as large as any other global network in terms of digital team-strength and revenues, and unparalleled in breadth and depth of digital skills.”

     

    Founded in 2005 and based in Bengaluru, Neev has aggressively grown and now employs a team of 250 specialists, of which over 220 are technologists, with experience and expertise in leveraging cloud and mobile technologies and promoting innovation that drives business success.

     

    Elaborating on the agency structure Ms Mathur said, “Neev is growing very aggressively and by the end of first quarter next year we think we’ll be about 450-odd people in India. I think digital marketing as well as digital technology is being adopted at a very fast pace in India and Asia Pacific, so we do feel that we are on a huge growth curve on that front. While our technology hub will be in Bengaluru, we will be present across New Delhi, Mumbai, Pune and Bengaluru.”

     

    When asked about the agency’s clientele in India, Ms Mathur said that they would initially be tapping global clients at Razorfish and have already started engaging with a few of them. “While we cannot disclose any names as yet but it would suffice to say that we will be moving very fast in the Indian market.”

     

    Explaining the market and how it has evolved over the years, Ms Mathur said that the space that Razorfish operates in is growing very rapidly. “But when we look at the market we tend to look only at media buyers. If you were to look at technology and using digital to enable new services and products, that’s really the space that we operate in. We can’t really say that the market is about media only. Media, creativity and technology – the intersection of this is where we are placed right now.”

     

    As for the anticipated growth story, Ms Mathur said Razorfish had a good growth in 2012-13 at about 40 per cent and would like to keep on doing better as they go forward. “While right now we are one of the top 3 players, the goal certainly is to be the No 1 player in the next 12-18 months.”

     

    The agency will operate as Razorfish Neev led by Neev CEO, Saurabh Chandra. He will report into Kanika Mathur with a direct connection to Ray Velez, Global CTO for Razorfish.

     

  • Digital marketing consulting firm Convonix will align with Starcom MediaVest Group (SMG) in India

    Publicis Groupe acquires Convonix

    By A Correspondent

     

    Publicis Groupe has announced the acquisition of Mumbai-based digital marketing consulting firm Convonix. Convonix will align with Starcom MediaVest Group (SMG) in India. This transaction brings together two complementary organisations – Convonix’s strength in Search, Social and Analytics combined with Starcom’s strength in Media strategy creates a unique offering for the burgeoning digital marketing space in India and expands Convonix’s geographical presence in India to Delhi, Bangalore and Chennai besides Mumbai. This news follows a number of recent acquisitions announced by Publicis Groupe in India and fortifies its position as India’s largest digital marketing operation.

     

    Founded in 2003, Convonix has evolved from being the Search Engine Optimization organization in India to becoming an Integrated Digital Marketing Solutions provider, and currently employs over 200 internet marketing specialists serving clients such as Taj Hotels, Reliance Industries, Kotak Mahindra Group, Club Mahindra, Kodak, Aditya Birla Group among others. Convonix has a strong international footprint with over 60% of its business coming from overseas. Convonix has also recently developed a proprietary in-house brand monitoring and social listening platform called IrisTrack which enables clients to gather market insight on their products and competitors and also engage customers online to improve their customer service.

     

    The three founding members: Vishal Sampat, CEO; Sarfaraz Khimani, co-COO; and Pallav Jain, co-COO, will continue to lead the agency. Convonix will sit within SMG and will operate as SMG Convonix, with two market-facing brands: SMG Digital and Convonix.

     

    “As the first SEO organisation in India, Convonix has continued to innovate and build the very best digital capability whilst being highly respected for its ability to recruit the best talent from universities each year, and transform them into digital advertising experts through a rigorous training program,” said Laura Desmond, Global Chief Executive Officer for Starcom MediaVest Group, adding, “combined with our existing talent in the market, this deal strengthens our offering to ensure we are the market leaders in digital.”

     

    Year-on-year, Convonix has increased revenues on average 66 percent since 2008. According to the latest ZenithOptimedia adspend forecast, Search Marketing continues to expand rapidly in India and is forecast to increase 35% in the region during 2013, and more than 70% in the next two years.

     

    Vishal Sampat, CEO for Convonix, said, “We have built our reputation by focusing on talent, training, technology and performance, and doing so has enabled us to rapidly evolve with the consumer. Aligning with SMG gives us global scale and a more powerful face to the market which we can leverage to constantly improve our offering and give our clients the best tools and solutions available.”

     

    Srikant Sastri, VivaKi Country Chair for India who is presiding over the acquisition and transition of Convonix said, “After the Convonix acquisition, we are now clearly the digital marketing leaders in India, ahead of any other global network. We are positive that this acquisition will set the tone for our next phase of digital pre-eminence both in terms of expertise and revenue and we are continuing to explore other agencies that can help us capitalize on the outstanding potential of the digital marketplace in India.”

     

  • Underlining Publicis/MSLGROUP's's global capabilities in the strategic communications field, the group's various consultancies when combined ranked third in the Mergermarket's 2012 global M&A league table for PR Advisors

    Publicis/MSLGROUP consultancies ranked 3rd globally in Mergermarket’s PR advisors M&A league tables

    By A Correspondent

     

    Underlining Publicis/MSLGROUP’s’s global capabilities in the strategic communications field, the group’s various consultancies when combined ranked third in the Mergermarket’s 2012 global M&A league table for PR Advisors.

     

    Globally, Publicis/MSLGROUP teams at Kekst and Company and CNC Communications and Network Consulting accounted for USD 144.61bn of combined transaction value in 2012, and a combined transaction volume of 151 deals, ranking them in 3rd place on both measures.

     

    In the US, Publicis/MSLGROUP ranked 3rd in terms of value. The group includes Kekst, CNC, Capital MSL and MSL Germany. Combined, the group accounted for USD 144.47bn in transaction value in 2012. Kekst itself ranked #2 in terms of deal volume in the US in 2012 advising on 115 transactions.

     

    Within Europe, Kekst, CNC, and Capital MSL accounted for USD 78.71bn in value, putting them in 5th place. By volume, Kekst and CNC accounted for 59 transactions, putting them in 7th place.

     

    In Germany, CNC, Kekst, and JKL accounted for USD 39.46bn in value, while CNC and Kekst had a combined deal volume of 32. That puts the Publicis/MSLGROUP companies in 2nd place by value.

     

    In France, Publicis Consultants, CNC, and Kekst accounted for USD 10.67bn in value, putting then in 4th place. By volume, Publicis and Kekst accounted for 28 transactions, putting them in 2nd place.

     

    Following Mergermarket’s own methodology, Publicis/MSLGROUP’s analysis only takes into account companies that make the top 20 on a global or regional basis, and the top 15 on a country basis. Whilst providing a useful snapshot of Publicis/MSLGROUP’s performance, the results will however therefore underestimate the true market position of the combined business value and volume at MSLGROUP.

     

    Entities at Publicis/MSLGROUP working in the Financial Communications space, and who submit data to Mergermarket, include Kekst, CNC, JKL, Publicis Consultants, Capital MSL, MSL Germany, MSL Italia, Ciszewski MSL and MSL India.

     

  • The PR major aims to be a thought leader for the industry in India and China

    PR industry needs honest answers: Olivier Fleurot, CEO, MSLGroup

     

    By Johnson Napier

     

    While a sluggish outlook has dampened growth prospects across industries the world over, it’s a different story for the communications space. Or so it seems for the India market, which has been demonstrating decent growth year-on-year. Part of the success that the communications industry in India is witnessing could be attributed to the phenomenal performance of some of its prominent players. Like MSL India, which had a fantastic 2012 growth story to boast of.

     

    In India for the MSLGroup’s Board Meeting and to unveil the second edition of its industry report titled ‘Public Relations in India: Inside the Industry’s Mind and the 2013 Outlook’, MxMIndia spoke to Olivier Fleurot, CEO of MSLGroup, to gather his views on how far the PR industry has arrived in India, and what is it about the Indian communications market that makes the world sit up and take notice.

     

    Apart from India, China and other hot and emerging markets is where the action will come from, going forward, asserts Mr Fleurot. Excerpts:

     

    We’d like to begin with your observations on the trends that the PR industry in India and across Asia threw out, post the release of your outlook report in 2012. What were the ground realities you came across through the course of last year on the growth front?

    It is very clear that the PR industry in Asia is developing very fast. It is probably less mature than the Western Europe or US markets and therefore has a great potential for growth. Because we have acquired certain properties and have big ambitions for India and China we were of the view that we should be taking the lead in terms of organising a debate and finding honest answers on what is the road ahead for the future growth of this industry. That is the reason we launched our first executive report last year and have done it again this year. It is a contribution to the debate process and a way to show that we think we can be a thought leader in this industry.

     

    What was different about the way the Indian communications market grew in 2012 versus the other evolved markets?

    In India, what we managed to do is get a lot of western companies here as now we are very confident of our operations. As you’d know, foreign investment is very important for India and what we did for the country on that front is a good thing, so we think. As for Asia, I would say that it is the region in the world where the growth in our global industry is the highest. And I think it is going to be like that for several years because unfortunately in other markets like Europe the economy is not dynamic enough; we expect it to be flat for some more time. But clearly Asia is going to be the major driver of growth for our industry and we are very happy that we invested in this region a few years ago.

     

    Everyone seems to be hopping onto the digital bandwagon. What is going to be your strategy for growth for 2013?

    We are the clear No 1 in China and I can say the same thing about India as well. For us, digital was one of the key sectors where you saw us do a lot of initiatives in that space. Gaurav Mishra has been leading the digital and social media space for us in the whole of Asia. We are looking at acquisition opportunities across the region. Also we would be looking at other countries outside China and India to see if there is a potential for growth.

     

    Are you looking at emerging markets as an avenue for expansion going forward?

    Countries that are really opening up include Vietnam Indonesia, Latin America etc. We are always monitoring markets for potential acquisition possibilities wherever they be. These markets have to important in terms of the skills and experience. After all this is also the business of people so we need to keep looking out for new talent especially when dealing with new businesses and sectors. The best are those that have created their own company; they are more entrepreneurial and if they are ready to join it is always a fantastic experience. They need not necessarily be big companies but skills and talent is something that we are looking at.

     

    Are you satisfied with the growth story of MSL India in 2012? How does it compare to the growth story in your other important markets?

    Overall in Asia, our organic growth has been about 30 per cent which is way higher than the global industry figure of 5 per cent. A few countries have reported low numbers on account of low marketing and communication spending. For 2013, I am looking at a global growth of 5 per cent knowing that Europe will still be flattish and also Germany whose GDP grew by just 0.5 per cent given that it is the largest economy in Europe…also the industries are more mature in these countries. Actually, I am a bit optimistic about the US market as well given the fact that the elections are over and new budgets being approved etc. I think we can be surprised about the US market in 2013.

     

    Do you see opportunities arising out of upcoming or unexplored sectors going forward?

    We see huge opportunity in the energy sector given all talk about renewable energy etc. So we expect certain number of clients coming in there. Also, healthcare is also a priority for lot of clients across markets. The fact is that many industries are witnessing profound transformation these days. Also because of the growing use of social media and web most media are struggling to find a new business model or to promote their activity as where there were 3-4 channels, today that number is 100 or so…Also, Financial Services is another sector that needs some help going by what happened in 2012. So there are plenty of opportunities that exist.

     

    What are the takeaways that the industry can take a cue from the second executive report you’ve launched yesterday?

    The industry here in India should agree that there is a lot of potential and that it needs to come together and debate what are the best practices, how to raise the game, etc. There is need for the industry to see how it can offer value-added services, be more innovative etc as it is no longer about media impression anymore. It is much more complex than that especially on the web. So it is about measurement, being able to analyze data… basically see how we can develop a more sophisticated industry.

     

    What about talent? What is the way forward on that front?

    The fact that the industry is growing by 20 per cent we need to find the right talent. We need to work on our own image and on the image of the industry. We have to ensure that we attract the right young talent pool to our industry.

     

    What would be your core objective going forward?

    The aim going forward is to be a clear leader while also trying to be at the forefront by way of participation, debates etc in this industry.

     

    On Tuesday, January 22: Read extracts from the PR industry report – Public Relations in India: Inside the Industry’s Mind and the 2013 Outlook

     

  • MSLGroup India, Publicis Groupe's flagship strategic communications and engagement company, has announced an expanded India growth strategy to meet the needs of clients and negotiate the complex communication dynamics in one of the world's fastest growing economies

    MSLGroup India expands growth strategy, unveils new flagship office in Mumbai

    By A Correspondent

     

    MSLGroup India, Publicis Groupe’s flagship strategic communications and engagement company, has announced an expanded India growth strategy to meet the needs of clients and negotiate the complex communication dynamics in one of the world’s fastest growing economies. MSLGroup India is the nation’s largest PR and social media network, made up of three leading national agencies – Hanmer MSL, 20:20 MSL and 2020Social – as well as a speciality content and creative unit, MSLGroup Creative+.

     

    To build upon MSLGroup India’s business, the firm has announced a series of expanded initiatives in line with its updated three-year (2013-2015) growth plan. The highlights:

    Enhanced Positioning for the Agency, Industry-leading Focus on Talent Development, Strategic Consultancy Approach, Social Hive, Content and Creative Services Across India, Integration with Publicis Groupe, and Infrastructure and Technology Enhancements.

     

    The group’s new flagship Mumbai office, located in the new Urmi Estate building in Lower Parel, will seat the existing 225 staff in Mumbai and provide room for expansion. The new office features a modern, international working environment, lounges and flexible spaces for creative discussions, videoconferencing capabilities, floor-to-ceiling natural light on all sides, and other amenities to create a fun and productive environment. Hanmer MSL and 20:20 MSL Mumbai teams will relocate to this space.

     

  • No immediate impact in India as Dentsu's announcement of acquiring Aegis brings it closer to adland biggies WPP, Omnicom, Publicis & Interpublic

    Welcome,the new adland superpower:Dentsu

     

    By A Correspondent

     

    It’s no longer watercooler chatter or just a whisper in the corridors. By gobbling up Aegis, Dentsu has made its intentions very clear. Sir Martin Sorrell and Maurice Levy, the Japanese are a-comin!

     

    Announcing the mega-deal: Tadashi Ishii, President and CEO, Dentsu Inc and Jerry Buhlmann, CEO, Aegis

    Dentsu’s $4.9 billion acquisition is being counted as the biggest in the advertising business. It’s the second buy of a British ad entity within a month. But, of course, Aegis is a large network while BBH (which sold out to Publicis) is just a creative boutique.

     

    There was nothing forthcoming from the Dentsu and Aegis offices in India, however, it’s set to be business as usual for the now. The nitty gritty will only be completed by the end of the current year, and the impact, if at all, will be more on shared services, sources tell us.

     

    There is a marked difference between our respective styles of functioning, an insider at Dentsu told MxMIndia on conditions of anonymity. “But that too is a global issue”.

     

    Another industry voice told MxMIndia that the scale which Dentsu attains will help it considerably. It’s not just the preserve of networks like WPP, Omnicom, Publicis and IPG any more. The rub-off will be very positive on both entities and pitches henceforth will see them as significant players.

     

    First some background:

    In July 2009, Dentsu announced its medium-term management plan titled “Dentsu Innovation 2013”, focusing on global business expansion and intensifying digital offerings, together with further strengthening its mass media business, to drive its business strategy as one unified group and to achieve strong growth. Looking to its clients’ and media agencies’ business landscape, Dentsu’s business exposure has been expanding globally, especially with strong focus on emerging markets including Asia.

     

    On the other hand, Aegis, a global focused media and digital communications group with highly competitive digital service offerings, enjoys a strong presence across Europe and increasingly in the US (clearly the world’s largest advertising market), and is rapidly growing its footprint across Asia and the Pacific. The combination of Dentsu and Aegis will be highly complementary, bringing together a global media platform with capabilities to provide integrated solutions, and offer enhanced quality services to clients.

     

    Both companies place “client centricity” at the core of their values and Dentsu’s corporate vision for “Good Innovation.” and Aegis’ to “Reinvent the Way Brands are Built” demonstrate the respective commitment to continuous improvement.

     

    The Rationale:

    Dentsu believes that a business combination between Dentsu and Aegis will deliver the following strategic and financial benefits:

     

    1. Expansion of global presence

    The geographical fit between Dentsu and Aegis is highly complementary. Dentsu has a leading market position in Japan’s advertising and marketing sector, an established presence across Asia, and an increasingly expanding business in the US, with mcgarrybowen as its core US subsidiary.

     

    Additionally, Aegis enjoys a leading position showing strong presence across Europe and increasingly in the US. Moreover, Aegis is rapidly growing its footprint across emerging markets, and has established robust positioning in Asia excluding Japan.

     

    Together, the enlarged group will be a stronger global competitor with the scope and scale to compete for and win international mandates across Japan, Europe, Asia Pacific and the Americas. The combined network with a full range of advertising, media and marketing services will enable Dentsu and Aegis to provide highly integrated services for local, regional and global clients across multiple international locations.

     

    2. Enhanced service and integrated solution offerings

    Dentsu and Aegis each rely, in order to be competitive, on distinct service offerings and expertise, together with their creativity and integrity, to exploit best solutions with a variety of service offerings.

     

    Following the transaction, the combined group will have a strengthened ability to offer a wider spectrum of niche services and expertise as a full service agency. With both Dentsu and Aegis’s extensive experience and knowledge, the combined group will enhance its ability to offer integrated solutions to clients.

     

    3. Intensified digital capabilities

    The adoption of ‘scaled’ technologies by consumers has driven the proliferation of connected devices and advancements in communication technology, significantly affecting clients’ advertising and marketing activities. Dentsu faces strong client expectations to strengthen digital solutions.

     

    With the rise of digital consumption and client demand for digital services, Dentsu has successfully enhanced its digital solutions over the years. By integrating Aegis, with Isobar and iProspect’s digital strengths in creative origination and performance marketing, the combined business will provide a powerful global platform for media, content and digital technology, and will increasingly support client activities.

     

    The combination of Dentsu and Aegis, with its robust client portfolio, will count at least 71 out of the top 100 marketers as clients on a combined basis, and will provide global and local clients with a new, differentiated proposition to achieve their objectives, and also accelerate the drive to continuously create new innovations as one unified group.

     

    CEO-speak:

    Here are comments from the respective CEOs:

    1. Dentsu: Tadashi Ishii, President and CEO:

    I am pleased to announce this exciting and transformational combination between Dentsu and Aegis. Together, we will be able to deliver fully integrated and best-in-class services to our clients through a new global communication network born in the digital age offering a broadened service portfolio. Dentsu and Aegis will be the market leader in the Asia-Pacific region, enjoying a strong presence across Europe and the fastest growing agency network in the US.

     

    In recent years, under the leadership of Jerry Buhlmann and his team, Aegis has been recognised as the most successful independent media and digital communications agency with strong performance momentum and talented, client-focused employees. We look forward to working with our new colleagues with whom we already share a common “client-centric” philosophy. Jerry and I have huge ambitions for a truly client-focused global communication network built in the digital age, and are looking forward to further innovating our business and continuing to contribute to our clients’ success.

     

    2. Aegis: Jerry Buhlmann, CEO:

    This is a compelling combination of two great businesses that will create one of the world’s most dynamic marketing services groups – and the first to be born in the digital age.

     

    We at Aegis are delighted at the prospect of being able to play a full part in helping Dentsu create a platform for global growth and continued digital innovation. By forming the first communications group with true global reach, the growth strategies of both businesses will be enhanced as we provide more scale, geography, capability and investment to support clients.

     

    “For the people of both these great businesses, the combination offers continuity and the promise of working for one of the most exciting, high-growth companies in our industry. We have complementary geographic fits and aligned visions and strategies. Together, we have strengthened investment capabilities as we work to help more clients than ever before navigate the complex and converging media ecosystem.”

     

    The India angle:

    Market observers in India credit the team led by Sandeep Goyal for the initial salience of Dentsu amongst advertisers. The Japanese ad network is no longer an alien name, even though it’s not as big as WPP, Publicis, Ommnicom or IPG.

     

    In India, Dentsu has the following arms: Dentsu Marcom, Dentsu Communications, Dentsu Creative Impact, Dentsu Media and Dentsu Digital. And Aegis has: Carat, Vizeum, Isobar, iProspect, Posterscope, Brandscope, Hyperspace, Carat Fresh Integrated, PSI and Doosra.

     

    But the presence of Mr Goyal earlier and now Rohit Ohri has ensured that business keeps coming in to Dentsu, a senior media agency executive told MxMIndia. As for Aegis, the leadership of Ashish Bhasin means that the group has stability at the helm.

     

    For Mr Ohri: Ken Terasawa (Exec Vice Chairman), Soumitra Karnik (NCD) Narayan Devanathan (Dentsu Marcom), Titus Upputuru (NCD, Dentsu Marcom), Arijit Ray (Dentsu Communications), Glen Ireland (Dentsu Digital), Yutaka Kamoshita (Dentsu Digital) and Divya Gupta (Dentsu Media) and for Mr Bhasin: Kartik Iyer (Carat), Anand Bhadkamkar (CFO), S Yesudas (Vizeum), Haresh Nayak (Posterscope), Shamsuddin Jasani (Isobar), Zaheer Mirza (Doosra).

     

    While Mr Ohri is travelling and not available for contact, the information that MxMIndia received the morning after the announcement that the overall global structure will be unveiled only by the year-end, and following that regional and India-specific restructuring may happen. However, in the same breath, a source in a Dentsu international office told us that given the slowdown managements will be sensitive to overspending, so don’t be surprised if the process towards rationalization happens quicker.

     

    Suggested reading:

    Ad Age report: Not the ‘Big Four’ Holding Firms in Adland Anymore — Now It’s the Big Five

    http://adage.com/article/agency-news/big-holding-firms-adland-anymore-big/236001/

     

  • On day 4,India managed to pick up 1 Gold, 1 Silver and 5 bronzes. The Gold was bagged by DDB Mudra Group for its entry 'The Hinglish Project' in Design Lions

    DDB Mudra, Leo Burnett within touching distance of each other on metals tally

    By A Correspondent [updated]

     

    With 11 out of 15 categories already finding their fate at the grand creative stage of excellence-Cannes,India’s performance at this juncture doesn’t paint an impressive picture. Out of a total 84 shortlists that India has managed to garner against its name across the 11 categories announced till date, only 12 have managed to find their way into the winners tally. A recap of India’s performance thus far shows the country having two Golds, three Silvers and 10 Bronzes in its kitty.

     

    On day 4, India managed to pick up 1 Gold, 1 Silver and 5 bronzes. The Gold was bagged by DDB Mudra Group for its entry ‘The Hinglish Project’ in Design Lions category. It also won a bronze for the same entry. The other Gold for India was bagged by McCann Worldgroup for its client ‘Western Union’ in the Outdoor Lions category. As for the Silvers, it is Leo Burnett that is leading the way with 2 Silvers including one in Press Lions for its client Bajaj Electricals and the other for Doorstep School in the Media Lions category.

     

    Leading the list among the agencies is DDB Mudra with 32 points (including 22 points from shortlists). At the second place is Leo Burnett with 30 points against its name. If not for the points accumulated from shortlisted entries, Leo Burnett would’ve been placed at the top spot. Coming in third is Ogilvy India that has a total of 19 points against its name, including 3 Bronzes that it has bagged so far. It is a close call between the fourth and the fifth spots with BBDO India sitting at 14 and McCann WorldGroup sitting at 13. Cheil Worldwide is next with 8 points including 1 Silver that it won for Samsung. Brand David is next with 4 points followed by Publicis and Bates at 2 each. The remaining ten agencies are placed at the same spot (tenth) having bagged a point each for their respective shortlists.

     

    With four more categories to go, including Film Lions, Film Craft Lions, Branded Content & Entertainment and Titanium & Integrated Lions, the table is still wide open. Whether a new contender will emerge at the top and whether India will compare this year’s metals tally to that of the past will be known in a couple of days. Note this does include the shortlists announced today.

     

    Agency Titanium Grand Prix Grand Prix, Titanium Gold Silver Bronze Shortlist Total
    Points 12 10 7 5 3 1
    DDB Mudra 1 0 1 22 32
    Leo Burnett 0 2 1 17 30
    Ogilvy India 0 0 3 10 19
    BBDO India 0 0 2 8 14
    McCann Worldgroup 1 0 0 6 13
    Cheil Worldwide 0 1 0 3 8
    Brand David 4 4
    Taproot India 3* 3*
    Bates India 2 2
    Publicis Communications 2 2
    BBH India 1*+1 1*+1
    JWT Mumbai 1 1
    Creativeland Asia India 1 1
    TBWA\ India 1 1
    M&C SAATCHI 1 1
    OMD India 1 1
    Mindshare 1 1
    Draftfcb + Ulka 1 1
    Grey Worldwide 1 1
    PERCEPT/H 1 1
    Bacardi India 1* 1*

     

     

    * Winners to be announced on Saturday late evening @ Cannes

     

  • Over the years, India's winning tally from 2007-2011 in Press Lions read thus: 4, 7, 2, 6, and 4

    India@Cannes: DDB Mudra with 10 & Leo Burnett with 8 shortlists raise India’s hopes for Press Lions

     

    By A Correspondent

     

    Largely the same as the number of entries sent last year,India’s tally in Press Lions stands at 266 – compared to 267 last year. Overall the category has seen a rise of 12 per cent, recording 6,056 entries from 72 countries. Leading from the front once again is Brazil that has sent a record 948 entries. It is followed by UK & USA that have sent 399 and 390 entries respectively,Germany that has sent 385 entries and France that has sent 325 entries.

     

    The number of shortlists from India stands at a commendable 30. This is led by DDB Mudra that has 10 of its entries being shortlisted, Leo Burnett which has 8, Ogilvy & Mather that has 6, BBD0 that has 4 and Publicis that has 2.

     

    In the category Art Direction, DDB Mudra has three of its entries – Great Fire of London, New York Blackout and Armenian Internet Shutdown that have been shortlisted for its client Geebees Beverages. Three other shortlists of DDB Mudra include Elvis, JFK and Roswel lfor its client Stedfast in the Business Equipment & Services category. Leo Burnett once again finds four mentions for its Cigarette, Socks, Fish and Egg entries for its client Bajaj Electricals in the Photography category while Ogilvy bags three shortlists for its client Mattel Toys in the entertainment & Leisure category. Publicis has two shortlists for its client Bookstalk Audiobooks in the Retail Stores category.

     

    Representing the jury from India is Raj Kamble Former Chief Creative Officer, BBH.  Over the years,India’s winning tally from 2007-2011 in Press Lions read thus: 4, 7, 2, 6, and 4.

     

    The awards will be distributed at a glittering ceremony at Palais des Festivals on Wednesday evening.

     

     

  • There are 34,301 entries from 87 countries for Cannes Lions, of which 1,182 pieces have been entered from India, slightly more than the last year's figure of 1,177

    How India fared @ Cannes in 2009-2011

     

    From the MxM Infodesk

     

    Adlanders from India wouldn’t want to forget 2009 in a hurry. If the slowdown of 2008-09 was one reason for gloom to descend on the industry, there was good news too – in the form of Cannes Lions – the pinnacle of award shows in the creative arena. With 25 metals,India beat all odds and set an example for global creative powerhouses to sit up and take notice.

     

    While the current economic growth has witnessed a decline in recent times, the number of entries that have been sent to Cannes Lions from India is at its highest. For the record, there are 34,301 entries from 87 countries that have been submitted to the Cannes Lions, of which 1,182 pieces have been entered from India. This is slightly more than the last year’s figure of 1,177 entries.

     

    A quick recap into India’s previous performances at the festival throws up interesting facts. Like 2009, the year 2011 too ended on a good note for India as it managed to accumulate a total of 24 metals – just one short of India’s highest ever tally of 25 Lions in 2009. With 4 Golds, 7 Silvers and 13 Bronzes, it was a memorable year for most agencies as hopeful entries ended up bagging the coveted metals. This was after India ended up putting 42 shortlists under its name.

     

    Mudra Communications emerged the ace performer as it ended up with three Silver Lions, five Bronze Lions and nine shortlisted entries. They were followed by BBDO India that bagged two Silvers, one Bronze metal and seven shortlists scoring 20 points. Ogilvy & Mather India with 13 points ended up third. McCann Worldgroup came next and was followed by Lodestar UM and Taproot India tying for the fifth place.

     

    As for the entries, the one that caught maximum attention was ‘Silent National Anthem’ by Mudra that won a total of four metals – one Silver metal and three Bronze metals. Another noteworthy entry was BBDO India’s ‘W.A.L.S – Women Against Lazy Stubble’ for Gillette that bagged the inaugural Creative Effectiveness Lion. Ogilvy & Mather too won metals for their entry ‘Train’ for Indian Railways and for Mentos Sour Marbels entries – Guillotine, Snake and Gun. McCann’s work for Onida Mobile Phones also enabled them to bag a couple of awards.

     

    In contrast, 2010 was one of the tough years for Indian ad agencies as they managed only 17 metals comprising 3 Golds, 6 Silvers and 8 Bronzes. The tally picked up pace towards the latter part of the event, offering a glimmer of hope to the delegates assembled, who otherwise were faced with the scare of India losing out on its popularity to outside countries.

     

    What was disheartening was that India drew a blank in most categories including Titanium, Integrated and Film Craft but finished well in Print, Design and Outdoor. While Publicis won a Gold Lion Campaign for the work done for Publicis Communications, Ogilvy won a Bronze Lion for the work done for Department of Posts. Aman Ki Asha and TransAsia Papers were the two entries by Taproot India that scored big at the awards. Tide Dirt Magnets by Leo Burnett was another entry that received due credits at the awards show. If not the metals, the delegates were perhaps comforted by way of august speakers who turned up at the event to share their knowledge on the given subject. It also witnessed Piyush Pandey and Agnello Dias taking part in discussions on the stage – a fact that was earlier moaned by Indian adlanders quite aloud.

     

    As for 2009, it was the best so far for India as it bagged 25 metals including 4 Golds, 7 silvers and 13 Bronzes out of a possible 42 shortlists. The highlight of the year was India winning its first Film Lion Gold, which was awarded to JWT India for the work done for The Times of India Chennai launch, entry titled A Day in the Life of Chennai. The entry by Senthil Kumar was awarded Gold in the Film Craft category and the in Music category. As for the agency tally, it was Ogilvy that emerged triumphant with 27 points followed by JWT India at 26 points. Publicis and Leo Burnett came third and fourth respectively. Other notable winners were Happy Dent’s Palace, Fevicol’s Bus, Neo Sports’s Gas entry, etc.

     

    Other notable winners included MediaCom India bagging a Gold Lion and a Silver Lion for ‘To Shave or Not to Shave’ campaign done for Procter & Gamble’s Gillette, Maxus bagging two Bronze Lions – one for ’20 Million Experiences’ for Tata Sky and one for ‘Midas Touch’ for Nokia India, Lodestar Universal bagging a Bronze for Nano and Madison Media winning a Bronze for ‘Say Condom, Aloud’ for BBC World Service Trust.

     

    Metals Tally in 2011

    Gold – 3

    Silver – 10

    Bronze – 10

    Creative Effectiveness metal: – 1

    Total No. of Metals - 24

     

    Metals Tally in 2010

    Gold – 3

    Silver – 6

    Bronze – 8

    Total No. of Metals - 17

     

    Metals tally in 2009

    Gold – 4

    Silver – 7

    Bronze – 13

    Total metals – 25