Nirmal John

Mumbai: As in several other sectors, red hot growth and the prospect of marketing to a billion people make India the place to be for ad agencies.

Over the recent past global agencies like Wieden + Kennedy, Bartle Bogle Hegarty (BBH) and Mother have either set up India operations or expressed plans to do so. The rush is undoubtedly fuelled by the booming consumer market in India.

As newer brands launch seeking a slice of one of the last big untapped markets in the world, agencies hope to strike gold themselves. While a considerable number of global biggies in advertising are already present in the country, the influx of the host of the new names could cause churn, both in terms of clients and in terms of personal for these agencies.

The movement of the 7UP account from JWT to BBDO could just be the start of many such accounts moving because of the presence of a globally aligned agency.

The four major global ad holding companies, Omnicom, WPP, IPG and Publicis Groupe, could also look at new specialised sectors to enhance revenue growth, both among ad agencies and media agencies.

The buzz has also been around digital agencies. The past year has seen big networks like WPP have been active in acquiring stake in digital agencies like Quasar Media in a bid to cover all bases. This spate of mergers and acquisitions in the space could continue with the growth in internet penetration in India.

Outdoor and out-of-home (OOH) advertising is another happening sector where a number of players have come in using a host of technology solutions. OOH could see further activity as the global agency networks look to enhance their presence here.

For agencies, tapping all possible sectors is imperative, not just to increase revenues, but also to satisfy clients who demand communication solutions which are in vogue. Clients pay ad agencies a commission percentage on services rendered, a flat fee or in some rare cases, a performance-based fee.

Source : DNAIndia