MxMIndia

Tag: WPP

  • Sir Martin Sorrell's WPP may buy 60% stake held by Arun Nanda and Ajit Balakrishan in Rediffusion Y&R India

    Is WPP close to a full buy of Rediff?

     

    By Pritha Mitra Dasgupta

     

    MUMBAI: WPP may acquire the 60% stake held by Arun Nanda and Ajit Balakrishnan in Rediffusion Y&R India, said two persons with direct knowledge of the development, adding that both sides are in negotiations over a possible deal.

     

    The London-based advertising and marketing communications company, which already owns 26.67% of the Indian agency, has been trying to buy out Messrs Nanda and Balakrishnan since 2002. When contacted, WPP CEO Martin Sorrell said queries about a stake purchase were speculative and therefore “there are no answers”.

     

     

    Win-win for both, say industry observers

     

    By A Correspondent

     

    Sir Martin Sorrell is not known to lose battles with easily. So, even though he nearly tired of all attempts to buy the equity of original founders and promoters Arun Nanda and Ajit Balakrishnan, he got back at them by moving two prized clients to other entities in his empire.

     

    The saga starts in 2000 when Y&R, 20 per cent co-owner of Rediffusion (along with Dentsu) from 1994, was acquired by WPP. Starting 2002, when Mr Nanda was inducted into a larger Y&R leadership council, attempts were being made to woo him and get him to part the balance 60 per cent.

     

    With time, Dentsu became a passive partner, albeit a partner with 13.33% stake. The Japanese giant’s interest in a jv with Sandeep Goyal and later on its own, didn’t deter the Rediffusion interest from staying on, even as the D from Rediffusion DY&R was dropped.

     

    However, when Sir Sorrell realised that Mr Nanda wasn’t going to give in easily, he gave his Indian partner the shock treatment. Prized accounts of Colgate Palmolive and Airtel moved to other WPP entities a few years back.

     

    The loss of accounts coincided with a crisis in creative and business leadership in the agency has been an issue for Rediffusion. Despite a wealth of talent having worked with the flagship agency, it’s Everest,  under the baton of ex-JWT Dhunji Wadia, which has taken rapid strides.

     

    Rediff-watchers believe a complete buy-out will be a win-win for all stakeholders and energies being spent for the right reasons.

     

    Although the article alongside quotes an amount of Rs 150-200 crore for the stake sale, a few others with some knowledge of the development say it will be less than Rs 100 crore.

     

    Guess we’ll need to wait for things to happen.

     

    Arun Nanda, CMD, Rediffusion Y&R, said talks between the two companies were an ongoing process. “There has been no sale of any shares to WPP, nor any agreement to sell concluded,” he said. However, a WPP insider said David Sable, global CEO of Y&R, and Matthew Godfrey, president, Y&R Asia, helped Mr Sorrell take talks forward during their recent visit to India.

     

    ‘Around Rs 150-200 crore for stake’

    WPP is on the verge of closing the deal, this person said. Nanda refuted speculation regarding his agency’s financial performance.

     

    “We are a profitable agency, in the top 10, with good clients and strong brands. We have been profitable year on year, every single year since 1973!” he said. “We have clients in our portfolio who have been with us for 37+ years and we are not dependent on any one client.”

     

    Mr Nanda’s comment was in response to some observers saying that the agency had lost some of its sheen. Based on this, one WPP executive said the price for the additional 60% stake may be about Rs 150-200 crore. This writer wasn’t able to independently verify this valuation.

     

    Dentsu, which owns 13.33% of the Indian agency, said it wasn’t aware of any likely deal. “We haven’t received any official intimation on this,” said Rohit Ohri, executive chairman, Dentsu India Group.

     

    Nanda also dismissed talk regarding a possible Tata group corporate pitch.

     

    “The Tata group has recently asked a few global agencies (based abroad) for a presentation for their brand work outside India,” Mr Nanda said. “This assignment has nothing to do with the Indian market. Rediffusion is not involved in this pitch.”

     

    Rediffusion Y&R India fully owns ad agency Everest Brand Solutions and allied businesses such as VML Qais, a digital agency, and Brand Asset Valuation. If the deal goes through, Mr Sorrell may not consolidate the businesses as he has always encouraged separate, competing brands under the WPP umbrella. However, there could be a name change to reflect any new ownership.

     

    Source:The Economic Times

    Copyright © 2014, Bennett, Coleman & Co. Ltd. All Rights Reserved

    Licensed to republish

     

  • The industry grapevine suggests that TAM will take the Ministry of Information and Broadcasting to court on the deadline of the measurement guidelines

    As time ticks on measurement guidelines, will TAM take MIB to court?

    By A Correspondent

     

    With the government guidelines notified on January 16, the time’s literally ticking for TAM and the entire prevailing broadcast ecosystem.

     

    Thanks to the persistent demands of broadcasters – especially those representing news channels – to police TAM, the Ministry of Information and Broadcasting has been on an overdrive on the issue of measurement guidelines. The perception created is that news channels are required to sensationalise to score high ratings and the government, in its effort to to keep newswallahs happy and in check in an election year, is on an overdrive. How the ratings scenario will change in the new BARC-administered regime beats us, but what we do learn is that existing player TAM is contemplating taking the Ministry of Information and Broadcasting to court.

     

    The plea will most likely be that it cannot comply with the requirements on ownership within 30 days so it needs to be given time. The advertisers, media agencies and select advertisers too believe that a measurement-free regime will be counter-productive. Some advertisers in fact believe a measurement blackout will force them to review their spends on television.

     

    According to the grapevine, TAM’s co-owners had some concerns on taking the Court route. Nielsen, we were told, was averse to litigation, while Kantar wanted it. Both Nielsen and WPP, the owners of Kantar, have steady businesses in India and there’s a concern on how taking on the government could impact its relations with the government. Industry veterans though site several instances when relations with government hasn’t been impacted by legal tangles.

     

    Meanwhile, even as you read this, BARC has convened a press conference in Mumbai to make some significant announcements – possibly the name of the vendor – Mediametrie or Nielsen.

     

  • The WPP CEO will be a part of a new monthly show titled '30 Minutes with Martin Sorrell' on CNBC-TV18

    Martin Sorrell to a do a monthly show for CNBC-TV18

    By A Correspondent

     

    So what’s Sir Martin Sorrell doing these days? Betting big on China of course as he did in a signed article in London’s Daily Telegraph last Saturday. It’s interesting hence to note that the world’s most powerful name in advertising and marketing services is going to doing a show titled ’30 Minutes with Martin Sorrell’ for our own CNBC-TV18.

     

    This new monthly half-hour programme (subject, of course to his hectic schedule, a communiqué from the channel adds) will kick off from tomorrow, that’s Friday, November 29 at 7pm.

     

    The show will be hosted by Anant Rangaswami, Editor of Storyboard and Senior Editor of Firstpost. Each month, Mr Rangaswami will speak to the WPP CEO on recent and imminent developments from the world of media, advertising and marketing.

     

    Although CNBC-TV18 via its PR agency Good Relations India did not part with the transcript of what Sir Sorrell said, a communiqué says that among the key issues the show will cover on Friday will be Twitter’s revenue model and valuation, the rumour that WPP will buy IPG, why big retail should be bothered about Chinese ambitions and finally the WPP captain’s prognosis for calendar year 2014.

     

    Interestingly, this is what Sir Sorrell wrote about India in the Telegraph article: “India may remain in stasis after the election, as no party will have a clear majority and a coalition will continue to compromise.” And on China? “I’m very bullish on a China with strong new leadership following the Twelfth Five Year Plan and the Third Plenum of the Eighteenth Party Congress – when did a Western government set out such a detailed and comprehensive plan?”

     

    The 68-year-old media baron believes “next really big thing, or things, will be coming from China”. Perhaps it/they will. Meanwhile, let’s wait for what he says on his own show this week and then, month after month.

     

  • BARC is said to have zeroed in what is perceived as cutting edge technology in television audience measurement. The technology is said to be pilfer-proof, future-ready and economical.

    BARC eyes 50K panel in 1.5 years

    By A Correspondent

     

    Broadcast audience measurement research body BARC (short for Broadcast Audience Research Council) is eyeing an initial panel (households with set-top box installation) of 20,000 and 50,000 within a year-and-a-half thereafter.

     

    According to reliable sources, BARC is said to have zeroed in what is perceived as cutting edge technology in television audience measurement. The technology is said to be pilfer-proof, future-ready and economical.

     

    While the Establishment Study is expected to be complete by next month, the decision on the vendor will now be taken on the basis of the technology selected. BARC is said to have firmed up on three – international as well as Indian – players and the tests are due to begin soon.

     

    BARC is expected to award the contract by the end of this quarter or by January 2014. According to a source, the technology solution adopted is expected to be much cheaper and advanced than what is currently available. “What’s important is that BARC should have enough time to undertake tests,” said one CEO who did not wish to named.

     

    When asked whether the cross-holding rule will impact the selection of the incumbent TAM or its jv partner Kantar Media which is owned by ad conglomerate WPP, a BARC member who MxMIndia spoke with, said the TRAI recommendations have not been notified by the government yet so Kantar solely or as TAM can participate. However, it is believed that the government will toe the TRAI line and insist on no crossholding.

     

    On the size of the panel, the TRAI guideline says that while a minimum panel size of 20,000 must be implemented within six months of the guidelines coming into force, the panel size needs to be increased by 10,000 every year thereafter until it reaches the figure of 50,000. Also, the panel of homes has to remain representative of all television households in the country.

     

    BARC is a joint industry body comprising broadcasters, advertising and advertising agencies. The deliberations and final decisions on the selection of vendors is to be taken by the Technical Commiitee head Shashi Sinha. Puneet Goenka is chairman of the body and Partho Dasgupta is its CEO.

     

    See also:

    Earlier report: BARC close to final decision on measurement vendor

     

    TRAI recommendations on guidelines for TV rating agencies

     

  • The Paris-based research firm releases its rankings on overall billings and network-wised billing

    How the media agency networks stack up post Publicis-Omincom merger as per RECMA

     

    By A Correspondent

     

    Leading media agency research firm RECMA has released its Global Ranking 2012. While India-specific numbers are important, in a globalised order, the overall numbers are also noteworthy.

     

    A little background: since 1999, RECMA has been publishing annually the Global Billings Rankings report standing as the flagship report for the media agency industry. All major advertisers (media / procurement managers), consultants or media agencies use the global, regional or country rankings in their day-to-day business activities.

     

    This research is based on two metrics:

    1- the measurement of the buying billings based on the compilation of agency client lists with adjusted ad monitored spending allocated to each account

    2- the evaluation of non-measured media spending (or diversified services): a growing field which includes multiple areas from search to marketing strategy consulting.

     

    Five years ago, the sum of buying billings + specialized services (including digital) got RECMA to produce a new ranking based on the “Overall Activity” volumes. Hence, from now on, the report will be entitled “Overall Activity” – the term Billings (referring to buying media) being dropped.

     

    Notes a mail from the Paris-based founder Eudes Delafon and Olivier Gauthier, Partner, Director of Research and Sales Development Director: “Among the several improvements of this research, we paid a careful attention to the growth rates y-o-y to adjust the estimated Overall Activity volumes. This new point of analysis is now used as one of the 20 criteria in RECMA Qualitative Evaluations by country – a key benchmark for all industry professionals.

     

    Following the release of this report, we are updating the 50 country Qualitative Evaluations, starting with the Top 14 countries (to be available by the end of August). Details about the breakdown between buying Billings and Digital / Diversified services are not contained in this report. The Domestic reports as well as the Specialized Resources global report will provide data and analysis on this point.

     

    In the wake of the announcement that Publicis and Omnicom are merging, Recma has release a second table showing “how this historical deal overturns the hierarchy of the Groups of media networks”. Given the interest in the information, we place this table first.

     

    Industry shares 2012 in 6 regions
    following the creation of Publicis Omnicom group

     

    The Industry shares are calculated on the basis of the media agency Industry measured by RECMA.

    RECMA estimates Overall activity figure consisting in the aggregation of: buying billings (measured media spending) + non-measured spending (Digital & Diversified service).

    COMMENTS

    In Asia Pacific and in Others EMEA, the media arms of Publicis Omnicom group and WPP would hold a similar share.

    In Americas, Publicis Omnicom group would become a strong leader with a projected industry share of 41.6% versus 21.7% for WPP/GroupM.

    GroupM would remain the No 1 group in the Top 5 Europe markets, staying ahead of POG by four points.

    Finally, in the 14 countries (representing 75% of the media industry worldwide) the new POG media entity would weigh 36.8% of the industry against 27.1% for WPP/ GroupM: a 10-point gap.

    The three other groups, Dentsu Aegis Network, IPG/ Mediabrans and Havas Media-clearly stand a step behind.

     

    OVERALL ACTIVITY [BILLINGS] 2012 – Edition 13

    GLOBAL RANKING 2012 BY NETWORK

     

  • The Tata scion and media major back the former Olympian-turned-mediaperson's ad startup

    Noel Tata, WPP join hands to back Adille Sumariwalla’s Interspace

    Noel Tata (left) and Adille Sumariwalla (Photographs: Fotocorp)

     

    By Arijit Barman

     

    One is a former Indian Olympian who represented the country in the 1980 Moscow Games in the 100-meters event, the other a reclusive and obsessively media shy Tata scion. The two are teaming up to create a new media and advertising solutions company that will also have the world’s largest communications conglomerate as a junior partner.

     

    Interspace Communications is the brainchild of Adille Sumariwalla, an athlete-turned-media professional. Interspace is partnering WPP Plc’s Tenth Avenue – the strategic holding company of the group, which has subsumed all its diverse mobile, experiential, event marketing, brand activation and out-of-home (OOH) communications firms.

     

    Noel Tata, the vice-chairman of Trent and MD of Tata International, who was considered to be among the contenders to succeed Ratan Tata, has also come on board with a personal investment, said multiple people aware of the development. Cyrus Mistry, a member of the Tata Sons board, eventually succeeded Ratan Tata at the end of 2012.

    The new venture takes off at the end of this month, when Rupert Day, the Global CEO of Tenth Avenue comes to India along with other WPP top brass. Day, an old associate of WPP’s founder Sir Martin Sorrell is the former COO and one of the founders of GroupM.

     

    Industry officials, however, said that a few marquee brands and financial sector clients have already signed up. A core team of over 20 professionals has also come on board in Mumbai while recruitments are ongoing for branch locations in Bangalore, New Delhi and Hyderabad. When contacted, Mr Sumariwalla confirmed WPP’s investment and association but declined to comment on the identities of his other co-investors citing confidentiality clauses.

     

    “This is a private family investment and has nothing to do with the Tata Group,” said a Tata Group spokesperson in response to a query.

     

    Mr Day did not respond to email query, while Ranjan Kapur, India country head of WPP, did not want to comment. “We are not looking at a plain vanilla outdoor agency. We will offer our clients the entire spectrum of outdoor media solutions. So starting with planning we will go on and buy outdoor space, implement, monitor and report a campaign. We are also looking to marry this with social media, online and mobile platforms,” said Mr Sumariwalla. Interspace, however, will not own assets like billboards or bus shelters.

     

    An industry veteran, Mr Sumariwalla started his professional career with Tata Engineering and Locomotive (now Tata Motors) where he worked for 15 years after which he moved to the media industry as the founding CEO of the Asian Age Newspaper, followed by a stint in Mid-day.

     

    According to industry sources, Mr Noel Tata is no stranger to advertising business. He owns Jaguar Services-again in his private capacity-which positions itself as India’s first mall and multiplex activation agency that specialises in displaying ads on-screen and within premises. His family also owns the Sterling Theatre in South Mumbai.

     

    WPP already has a few companies in the OOH space in India like Bates Wall Street, Portland and Poster Publicity which are arms of Kinetic, a operating company under Tenth Avenue. Here too they will follow the strategy of collaborate and compete.”WPP is a trans-continental giant. So they bring in global expertise, case studies and best practices. But that apart, in India, Ranjan Kapur in Ogilvy Landscape first brought some semblance of organization in an otherwise completely fragmented, disorganized outdoor and out of home sector,” said Mr Sumariwalla.

     

    Source:The Economic Times

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

    Licensed to republish

     

  • As Genesis Burson-Marsteller completes two decades, principal and founder Prema Sagar looks back, and ahead

    Genesis B-M: Step ahead @ 20

     

    By Ananya Saha

     

    Genesis Burson-Marsteller started operations  in 1992. Led by Prema Sagar, the PR agency is a member of WPP global network. As it completes two decades, we speak to Ms Sagar, Principal and Founder, Genesis Burson-Marsteller, about the past and the future. And of course the present.

     

    How has the journey been for Genesis B-M in the past 20 years? Please share the milestones that defined this journey.

    The journey of Genesis B-M has even surprised me! It started in a basement with no vision, mission or strategy! It began with a passion, challenge and an opportunity to create something new and different. It started out with one employee, one office boy and one client. Today, we have grown to over 270 employees in six markets across India. Our journey as a firm mirrored the growth of public relations inIndia- growing year after year, working with global clients and expanding our service lines to meet the evolving needs of our clients. There have been many milestones reflecting this growth, including the opening of new offices, and launching new business lines like Public Affairs and Corporate Responsibility. The digital era we are now living in has also changed the way we communicate, both with our clients as well as the media, and will certainly impact our journey in the years ahead.

     

    Which account wins have been the turning points for the agency?

    All of our client wins are important and celebrated. Our very first client, Park Hotels, set Genesis PR in motion. We are very proud of the fact that Park is still our client after 20 years and we value this relationship tremendously even though there are many larger clients in the roster. Priya Paul, Chairperson, Apeejay Surrendra Park Hotel gave me the first break and I was paid while I learnt the ropes! She is a great professional and I admire her courage in more ways than one. We are proud of a number of clients with whom we have long term relationships, some we have served for over ten years.

     

    A call one day from Tarun Das, Director General, CII asked if we would be interested to manage the public relations for the Indo-British Partnership Initiative (IBPI) where the two governments, their ministers and corporate CEOs were to meet on the Royal Yacht to sign partnerships and joint ventures – a great boost to the economy. The event was a great success, our entire team of 5 people including me were in Mumbai to execute this great event. As a result of this, Genesis got to be known! I always felt that I should have paid Priya Paul and Tarun Das for our early learnings – but we needed the money desperately so I never mentioned it.

     

    The turning point of our journey was when we reached 30 retainer clients such as Indian Aluminum Company (INDAL), Ranbaxy, DCM Ltd, SRF, Eicher, India Habitat Centre (IHC), Confederation of Indian Industries (CII), Lakme Fashion Week and so many others in its early years as a result of a great team that delivered outstanding campaigns year on year. I look at the long list of organisations with whom we have worked since 1992 and it is such a diverse mix of industries and services. The nature of the work has been equally diverse – crisis preparedness, thought leadership, product launches, advocacy and much more. We are proud of our roster of clients and we believe that our clients are our endorsements.

     

    Experiences such as launching the first luxury car in India, the first international liqour company, managing a hostile bid, fire at a manufacturing unit on New Year’s eve, petrol/diesel issue, pesticide issue, environmental issues and many others that taught us a great deal.

     

    Genesis B-M today has the domain expertise and services that go beyond just public relations – public affairs, advocacy, corporate responsibility, digital and content creation. Each of these developments was a turning point for us and has helped us become leaders in the industry. We work at keeping a fresh perspective, always asking ourselves new questions. How can we build further capabilities? How can we improve based on what we are doing today and what will it bring us in the years ahead? Always thirsty to Change the Game…and you will see more of that in the coming year!

     

    If you were to re-live the past 20 years, would there be anything that you would like to change/alter in the agency?

    Looking back, there are a number of things that served as learning experiences. Learning is constant and comes from good decisions as well as bad ones.

     

    Have the challenges that PR industry faces today, changed from what it were 20 years ago?

    Our challenges have evolved with the growth of the industry. More clients today understand the value of strategic communications and public relations in general, than was the case 20 years ago. Certainly there is more competition now than there was then. A competitive environment only improves the quality of work and therefore the bar on the level of quality raises the standard of the industry.

     

    We are fortunate to have and continue to attract great talent. The quality and experience of the leadership at Genesis B-M is recognised not only by our international colleagues but also our competitors. As a result of this the company has had steady growth. The programmes at the GBM Learning Centre, established almost 12 years ago, has built capabilities and is a big differentiator. Having said that, the branding of a GBMer for the rest of the industry to attract them is our challenge!

     

    Finding great talent is the biggest challenge facing all service sectors across the globe. How we invest in it – is the solution. We are proud to see many of our talented alumni in top jobs in Asia Pacific and now going West-wards. We can look at the glass as half empty or half full. We look at it as an opportunity to provide the foundation of a strong industry in India.

     

    The biggest challenge we face are recognition of suitable fees for quality work and experienced communicators who are advisers to the CEO rather than being a function. While it is evolving now it needs to move upwards sooner rather than later in a challenging environment. CEOs today need to invest in Thought Leadership that brings together the elements of social development, policy environment for the larger good of all while building a business.

     

    After the B-M partnership, how has the agency grown/changed?

    The B-M partnership has delivered great opportunities, not only for client development but also as for talent development. The exposure to global opportunities brings about a whole new world of learning for team members at all levels. We have run successful projects for international clients in recent years, which has opened new doors of opportunity for us. As for our talent, being part of such a respected and successful global network gives them a chance to work with our offices around the world, providing great exposure to best practices and new ideas.

     

    What will be the next target for Genesis B-M?

    I am proud of the fact that we have always been a step ahead of what the market demands. Our ability to service clients with fully integrated programmes that work across practices and geographies has set us apart from our competitors in the industry. The continued development of practice specialties will always remain a focus for Genesis B-M, today and in the years to come.

     

    Five years down the line, how do you see the agency growing?

    I think it’s important that our growth continues to reflect the changing needs and growing demands of the industry. For example, we are seeing a shift in target markets, with client’s focusing not only on the key metros likeDelhi, Mumbai andBangalore; but also Tier II and Tier III markets as well, including the rural areas. This presents both an opportunity and a challenge for us. Communicating across India’s diverse landscape poses numerous challenges, but is increasingly essential to any successful communications plan. Having the reach to these outside markets will contribute significantly to our ability to service more clients, and in turn, contribute to our continued growth as well.

     

  • The return date for the dismissal motions will now be December 14 and not September 13

    WPP, Nielsen dismissal motions to be heard on Dec 14

    By A Correspondent

     

    The return date for the dismissal motions will now be December 14 and not September 13. As per the proposed order posted by the New York Supreme Court, on August 30, the Court granted NDTV’s application for a conference to set forth a schedule by which the three key parties (NDTV revising its complaint), WPP’s existing motion to dismiss and Nielsen’s proposed motion to dismiss the motion. (See proposed order at: https://iapps.courts.state.ny.us/fbem/DocumentDisplayServlet?documentId=H5fLtBSiJltQWmamdxHfhQ==&system=prod)

     

    On August 31, 2012, the Court conducted a conference, via telephone, with counsel for NDTV, counsel for the Moving Defendants (WPP) and counsel for the Nielsen Defendants. On the Conference Call, counsel for NDTV indicated, inter alia, that NDTV will conduct an investigation as to whether or not Kantar, IMRB and JWT were properly named in the Complaint, and, if not, NDTV will make the necessary changes in the Amended Complaint.

     

    Having considered all of the papers and arguments regarding the scheduling
    disputes, the Court ordered: that:

     

    1. NDTV file and serve its Amended Complaint on or before October 5,
    2012, via electronic filing;

    2. The Moving Defendants (WPP) file and serve their supplemental motion papers
    responding to the Amended Complaint, if any, on or before October 19,
    2012, via electronic filing;

    3. The Nielsen Defendants file and serve the Nielsen Motions to Dismiss on
    or before October 19, 2012, via electronic filing;

    4. NDTV file and serve its opposition papers to the Motions to Dismiss and
    the Nielsen Motions to Dismiss on or before November 16, 2012, via
    electronic filing;

    5. The Moving Defendants file and serve their reply papers regarding the
    Motions to Dismiss on or before December 7, 2012, via electronic filing;

    6. The Nielsen Defendants file and serve their reply papers regarding the
    Nielsen Motions to Dismiss on or before December 7, 2012, via electronic
    filing;

    7. The return date for the Motions to Dismiss is adjourned until December
    14, 2012; and

    8. The return date for the Nielsen Motions to Dismiss shall be December 14,
    2012.

     

  • WPP has combined its various teams working with Y&R, Wunderman, VML, MEC and GHG to come under the umbrella of Red Fuse Communications

    WPP integrates teams for Colgate-Palmolive under ‘Red Fuse Communications’

    By A Correspondent

     

    This isn’t a first for advertising and marketing services network WPP, but should help the servicing of a key client a great deal. Adland globally has been abuzz with the AdAge newsbreak that WPP has combined its various teams working with creative network Y&R, direct & marcom agency Wunderman, digital shopVML, media agency MEC and healthcare communications firm GHG to come under the umbrella of Red Fuse Communications.

     

    According to the report in Advertising Age, WPP’s Global Managing Partner Stephen Forcione will be CEO, Red Fuse. Mr Focione has been heading the Colgate account thus far and will also be Digital Lead for WPP’s Top 30 clients. Colgate-Palmolive is the 34th largest marketer in the world as per the magazine’s DataCenter. Mumbai will reportedly be among the six cities where the Red Fuse roll-out will happen this year.

     

    Although the Ad Age report quotes the Colgate CMO, the official press areas of both WPP and Colgate are silent on the development.

     

  • All the answers to:Why did Agnello Dias & Santosh Padhi choose Dentsu over WPP? How much money? What will the equations be with Rohit Ohri?

    The Complete Story: Win-win for Dentsu,Taproot; big loss for WPP (from yesterday)

     

    By Pradyuman Maheshwari

     

    So is it bigger win for Dentsu or Aggie and Paddy? Both parties, one would say. It’s not that Dentsu has no creative talent, but the Taproot India of Agnello Dias and Santosh Padhi has by far been the biggest creative story of Indian advertising in the last three years.

     

    An Ogilvy, Lowe or McCann may be thriving and a Mudra has won some great awards but nothing to beat Taproot, a CxO with an international network told MxMIndia on receiving MxM’s BBM alert at 6.30 am today.

     

    Agnello Dias

    The news of the announcement was made to the staff on Monday and key clients have also been informed. The nitty gritty of the deal was completed last week and the announcement by Denstu was made on Tuesday morning 10am local time in Japan.

     

    Although some estimates (and an Economic Times report that MxM carried as part of its syndicate arrangement) say that the deal is valued at Rs 140 crore (with Rs 60 paid immediately and Rs 80 crore in earn-outs), MxMIndia learns that this amount is exaggerated.

     

    No surprises here
    By Tuhina Anand 

    Taproot India in many ways has rewritten the fate of independents in India. In fact, Taproot would be an excellent example of a successful brand created in such a short span of time. The credit for this goes to its co-founders Agnello Dias and Santosh Padhi who have never looked back since launching the agency in January 2009.Like any new set-up Taproot would have had its ups and downs but the message that came out to the world from the agency was clear that the work they produced were superlative and consistent. The agency has done some memorable work like Airtel’s Har Ek friend zaroori hota hai or Pepsi’s ‘change the game’ which catapulted them in the big league and bigger brands which hitherto were prerogative of bigger agencies.Taproot continued its association with the TOI Group which had managed to win India’s first grand prix at Cannes Lions led by Mr Dias when he was with JWT. At Taproot too this association with TOI got them recognition at international platform like Cannes. It was also recognized as Cannes Lions top 20 independent agencies in the world. So it seems like a simple success mantra where the duo let their work do the talking and in return created a substantial equity for their agency.

     

    That Taproot decided to sell its stake doesn’t really come as a surprise as the talk was doing rounds that the founders were looking for partners. In their pursuit to get partners what probably helped was that Taproot had proved its mettle in a short span and there were prospects already willing to get a share in the agency. Then their choice of partner-Dentsu Inc- might come as a surprise initially as one would have expected an international hot shop to enter India via Taproot but if one stops to think the association seems perfectly aligned. Dentsu Inc has acquired 51 per cent stake of Taproot India.

     

    Taproot gets the scale and bandwidth of Dentsu besides the moolah. In fact, the deal is just at the right time for Dentsu Inc when the Japanese major has taken full control from Sandeep Goyal and is trying to get its arithmetic right in India starting with a managerial change where Rohit Ohri, ex-JWT was roped in as the Executive Chairman forDentsu India Group and later Divya Gupta to head its media busienss.

     

    For the latter, which is not really known for its creative prowess, Taproot is just the right fit as that’s the field where the agency scores highly.

     

    The fact that Ohri and Dias have worked together at JWT also makes them familiar with each Other’s working style.

     

    On the association, Rohit Ohri, Executive Chairman, Dentsu India Group, said, “Taproot has, very quickly, become one of the most respected communication agencies in India. In fact, Aggie and Paddy are globally recognized and celebrated creative talents. We are delighted that they have chosen to partner with Dentsu. This alliance will give a significant fillip to our growth plans for India. Our collective vision is not to be the biggest but to be the best in the industry.”

     

    On how this acquisition impacts Taproot, Mr Ohri added, “Taproot’s everyday operations and management will remain unchanged. We will ensure that Taproot’s independent spirit and fiercely creative culture stays intact. It will just have a lot more firepower added through integrated communication execution capability and an all-India network.”

     

    Agnello Dias, Co-Founder and Chief Creative Officer, Taproot India said, “While we are doing alright on the creative front, we felt that we needed to add a bit more logistical and service capabilities across markets. With Dentsu as our partner we feel we can scale up several areas of our operations very quickly without losing what has been working for us so far.”

     

    Santosh Padhi, Co-Founder and Chief Creative Officer, Taproot India added, “Most importantly, we are assured that this alliance will be mutually beneficial to Taproot India and also to each one of its employees going forward, without changing our creative offering or the nature of the relationships we share with all our clients.”

     

    Taproot India brings to Dentsu 33 full-time employees and a roster of clients that includes PepsiCo, Airtel, The Times of India, Polycab, Marico, Karbonn Mobiles,Myntra.com, Mumbai Mirror, Nirma, DSP BlackRock Mutual Fund, UTV Bindass, and UTV Stars among others.

     

    A wholly owned subsidiary of Dentsu Inc., Tokyo, the Dentsu India Group comprises three standalone full-service advertising agencies-Dentsu Communications, DentsuMarcom and Dentsu Creative Impact-as well as Dentsu Media and Dentsu Digital.

     

    However, in this entire celebration one question that really comes up is that for an independent who has bigger ambitions, the only way out is to become a part of a bigger network. In earlier MxM India’s conversation with industry players, some of the successful independents like Raj Kurup of Creative Land Asia and Manish Bhatt have voiced their opinion to remain solo. Mr Bhatt had explained to being open to partnerships but not a sellout. Mr Kurup had clearly stated, “I have started CLA with the prime motive of building it up, selling it definitely not in the plan.” (See: Stay solo or scale up with a biggie? http://www.mxmindia.com/2012/07/ stay-solo-or-scale-up-with-a-biggie/)

     

    With Taproot’s decision to go with Dentsu, the question of staying solo or scaling up with a biggie becomes much more relevant for the independents.

     

    The company is not valued above Rs 100 crore, and the amount paid to Messrs Agnello Dias and Santosh Padhi (both of who own equal stake) would be in the region of Rs 40 and 50 crore, we learn.

     

    Santosh Padhi

    There is an element of earn-out, but this depends entirely on the performance of the agency. So it could Rs 80, 180 or even 40 crore, is how one Dentsu insider told us after the announcement was made.

     

    Big loss for WPP

    There were many suitors for Taproot. While Publicis and Omnicom (via TBWA) were out of the race early, the choice was between Dentsu and WPP. In fact, MxMIndia learns that it was a decision that had to be taken by Messrs Dias and Padhi.

     

    WPP sources told MxMIndia that they were taken by surprise that the deal had been inked, as they were still hopeful that Taproot would pick them.

     

    So why was Dentsu chosen and not WPP, which has a huger presence in India and internationally. Ironically it’s WPP’s ‘bigness’ that’s perhaps one of the biggest reasons. While Dentsu has various arms, it is essentially one company in India, whereas WPP has various separate entities in Ogilvy, JWT, Group M and its new digital, BTL, etc interests.

     

    What Taproot realised in its journey is summed by Aggie’s statement in a Dentsu release: “While we are doing alright on the creative front, we felt that we needed to add a bit more logistical and service capabilities across markets. With Dentsu as our partner we feel we can scale up several areas of our operations very quickly without losing what has been working for us so far.” And this scale could be provided by Dentsu and not WPP was the thinking. The comfort factor with Dentsu was also greater, given the opportunities to grow.

     

    The likelihood of Taproot growing in the Dentsu fold is greater than it is with WPP.  There are big agencies like Ogilvy and JWT with WPP and folks like Piyush Pandey, Bobby Pawar etc who would always be centrestage and may try and pull rank given their seniority in the business. Not so with Dentsu, where even though there is talent within the India set-up, Taproot will have a star presence.

     

    Rohit Ohri

    Victory for Ohri, Future within Dentsu

    That the acquisition happened is a big feather in the cap for Mr Rohit Ohri, Denstu India’s executive chairman. It is Mr Ohri who is said to have initiated the discussion and gave the comfort factor to the Taproot co-founders.

     

    Some industry folk may remember there was a minor skirmish between Mr Ohri and Mr Dias when Taproot was awarded a Pepsi campaign and Mr Ohri was still at JWT heading Delhi operations, but all of that is history. In fact one of the main factors that Aggie and Paddy have inked the deal is the relationship with Mr Ohri.

     

    It may be noted that the stake sale deal has been signed with Dentsu Inc and not Dentsu India, and the reporting is to the Board of Dentsu headquartered in Japan. The other advantage this offers is that the fortunes of Dentsu India and the vagaries of its business will not impact Taproot. So, clearly while Mr Ohri is Dentsu’s face in India, Taproot will not report to him.

     

    What if?

    There is a three- to five-year lock-in period for most such deals, and the arrangement with Messrs Dias and Padhi is said to be of five years. However, there are various possibilities in the future as Dentsu grows in the scale post the Aegis acquisition and India becomes a bigger play for all advertising networks. The Dentsu insider we spoke to also said one shouldn’t be surprised if either Mr Dias or Mr Padhi or both could be given bigger roles in India or internationally.

     

    Since the deal helps both Taproot (scale, international network) and Dentsu (grow in India, creative powerhouse in its fold) the chances of a break-up are remote in the short and medium run, but even if there is, there will be no financial implication to monies paid out.

     

    Meanwhile…

    The papers are signed, the money may well be in the bank. There are no governmental clearances needed. People who do know Aggie and Paddy, as they are known in the industry, are aware that they have an easy, simple lifestyle. So don’t expect a cruise to the Bahamas or Hawaii or some such. The dosh will be well-invested. For the moment, it is getting used to being called Aggie San and Paddy San.

     

     

  • The controversy and litigation over television viewership measurement may lead to question marks being raised on the final selection of the vendor for the unified print readership study

    NDTV-TAM war impact may be seen in print if Nielsen is appointed IRS research vendor

    By A Correspondent

     

    Measurement has suddenly become a bad word in the Indian media. Over the last month, there has been much sound and fury over TAM Media’s television ratings with news network NDTV filing a 194-page lawsuit in New York. Since last week, the channel and WPP, principals of TAM’s part-owner Kantar, have been sparring via statements issued to the media.

     

    But now MxMIndia learns that there could be rumblings in the print space too, over the appointment of the research company to conduct the unified Indian Readership Survey.

     

    The Board of the Media Research Users Council (MRUC) which manages the Readership Studies Council of India (RSCI) is scheduled to meet today and announce the results of the contract following the RFP (Request for Proposals) issued last year.

     

    In a departure from the prevailing system of the research body being a partner and pocketing 85 percent of the revenues earned from sales, in the proposed system, the researcher was to be vendor being paid a flat fee. Hansa which has been conducting the study for MRUC since around eight years tied up with Ipsos and presented a joint proposal demanding a fee of Rs 10 crore. Nielsen’s original proposal was of Rs 12 crore, but the research major has been beaten down to a little below Rs 11 crore.

     

    However, ever since the news of the appointment of Nielsen was leaked last week, it appears that the controversy plaguing the television media research space could well lead to rumblings in print if it is indeed Nielsen which will be awarded the contract.

     

    MxMIndia too learns from its sources that Nielsen will indeed be appointed vendor for the IRS. The relationship is not of partnership as of now, but that of a client-vendor, where the research company has to undertake the exercise as per a set of instructions and for a fee. A global tender was issued and a technical committee carefully pored over each of the proposals. Various proposals came in but were rejected. The Hansa-IPSOS proposal reportedly did not find favour with the decision-makers because of the consortium modeit followed. It is believed that there was opposition to Hansa from some quarters.

     

    An MRUC member this correspondent spoke with raised some alarm. “While the work put in by the technical committee is commendable and selfless, they ought to have considered the mess that Nielsen has been in thanks to its co-ownership of TAM Media. The 194-page lawsuit sees the firm getting noteworthy mention. Moreover, there have been question marks over the retail audit too,” he said on condition of anonymity. “But it would be wrong to jump to conclusions on Nielsen’s appointment. If it is indeed true, we will raise the questions and convince ourselves. We clearly wish to be certain of the new vendors’ expertise in newspaper readership measurement – either globally or in India. We can’t afford to have any publisher, advertiser or agency questioning the measurement exercise and the bona fides of the vendor as has been the case with television.”

     

    That last bit we agree with. The WPP statement came in at 10.43 pm IST last night.

     

  • WPP and NDTV bring the battle over TAM ratings from the courtrooms to feeding the media with statements countering the other

    NDTV v/s WPP: War of words over the Weekend

    By A Correspondent

     

    I need another holiday, I told the boss.

    But why, he asked?

     

    Because since the time I thought I could bring in the weekend with a drink, the inbox has been inundated with statements from both NDTV and WPP.

     

    Wait, why WPP? The case was against Kantar, right?

     

    Oh, yes, it is. But Kantar is a subsidiary of WPP. And while it’s a listed conglomerate, Sir Martin Sorrell is bossman and he decides what WPP will do.

     

    So while it was good to see the Big WPP Boss himself getting his hands dirty, I was a little surprised to see him speak to the Indian media on the issue. Interviews with Sir Sorrell don’t happen daily, so who wouldn’t want to miss the opportunity.

     

    In one of the interviews, the WPP boss has even suggested that since NDTV’s lawyers essentially deal with litigations for restaurants, the lawsuit has been served correctly.

     

    Ah, well.

     

    Here are the six statements:

     

    26 Aug: Statement saying WPP takes India extremely seriously. That it is “ludicrous” to say WPP is taking India lightly

     

    25 Aug: WPP reacts to the 6 points raised in NDTV’s statement of the same day. Statement says Eric Salama responded to a mail sent by Vikram Chandra on July 27

     

    25 Aug: NDTV responds to WPP’s statement of 24 August (as well as to media interviews). Stings WPP and Sorrel, and sad to read these words: we request Sir Martin not to take India lightly. We request him to clean up his ratings operation in our country and to refrain from using his global PR clout to perpetuate corruption in his India ratings operation

     

    24 Aug: WPP issues a statement in Q&A form. Asserts NDTV’s decline is not down to any perceived failures in TAM data. In an interview with Mint, Sorrell says: “Nothing has been served properly. Nothing at all, that is why we call it a hypothetical lawsuit. The two-lawyer firm (engaged by NDTV) is based in Florida and it specializes in restaurant law. This is an Indian issue, not American. It is a bit of mischief on their part.”

     

    23 Aug: NDTV responds to WPP’s statement. “We request that WPP should focus on honestly fixing (for want of a better word!) their badly damaged and dishonest ratings system in India.”

     

    22 Aug: WPP statement on the NDTV’s “hypothetical” law suit. Says: “WPP is also giving active consideration to issuing proceedings against NDTV for defamation and has instructed its lawyers accordingly.”