Mergers take time to evolve, says Wunderman Thompson's Tarun Rai

Merger of Wunderman and J Walter Thompson has allowed us to step into areas we weren't exploring much earlier Rai tells Viveat Susan Pinto

The coming together of Wunderman and J Walter Thompson has allowed the merged entity Wunderman Thompson to exploit new areas within digital marketing, Rai tells Viveat Susan Pinto
 
What kind of an impact will the ongoing coronavirus issue have on the domestic advertising business?
 
From conversations around supply-side disruptions three weeks ago, the discussion now is about domestic demand taking a hit due to the coronavirus. So yes, there is a perfect storm brewing. But there has been no discussion with our clients on postponing launches. The health scare, of course, is understandable because of the number of cases that are being reported every day. While it is a gradual buildup, the fact that Covid-19 has arrived in India is a worrying sign. In my view, the next couple of weeks will be crucial. How fast the outbreak spreads and the government’s response to it will determine the future course of action of advertisers. For now, we continue to work towards meeting our deadlines as far as the launches for our clients go. The Indian Premier League (IPL) has been pushed to April 15, but not called off. The IPL remains a huge platform for brands. We are keeping our fingers crossed.

 

From J Walter Thompson (JWT) to Wunderman Thompson. How has the merger transformed the agency?
 
It has been a year since the merged entity and its new identity was unveiled in the country. This happened within days of it rolling out first in New York. We effectively became the second market after the US to be doing so, which was a big plus for us. Having said that, mergers take time to evolve. We are building a new culture, which is predicated not only on our traditional advertising strengths but also on harnessing data and technology. In many respects, the merger has allowed us to step into areas we weren't exploring much earlier. Marketing technology being a case in point. We already have 250 people at Noida (near Delhi) for e-commerce-related work. We have a 100-member-strong team in Mumbai that focuses on technology. We are not only talking to existing clients but new ones as well in different areas. Our pitch today is not just to chief marketing officers within companies but chief technology officers as well. This, to my mind, is a big shift.

 
Given the 90-year history of JWT in India, are clients comfortable with Wunderman Thompson?
 
A lot of our clients continue to refer to us as JWT. It is to be expected given our legacy in India and the globe. We were the first multinational agency in the country when we started in 1929 out of a room at the Taj Mahal Hotel in Mumbai. We were subsequently incorporated as a company in India in 1938. So our history is long and has been reinforced over the years with the work we’ve done for big brands. It is understandable therefore when clients struggle to recall Wunderman Thompson when the’ve seen JWT all these years. I don’t mind if clients take time getting used to Wunderman Thompson. But what is important is that they understand the difference between the two in terms of the agency’s offering now versus what it was earlier. That has been our endeavour over the last one year, which will continue.

 
Are you looking at acquisitions now that your holding company WPP appears open to it?
 
No, we are not looking at acquisitions right now. Instead, we would like to get some of Wunderman’s global capabilities into the domestic market as quickly as possible and scale it up for our clients. So we will look at a more organic way of filling need gaps within our portfolio and essentially simplify how we present ourselves to clients. Mark Read (WPP’s CEO) has been speaking of not just an integrated solution, but also of the need for simplification. That is an important point he is making and something we are working towards even as we add new capabilities and strengths to our offering in the country.

 
Is the shift in services within your portfolio pushing you to change your hiring policies as well? How challenging is it for you to execute that?
 
We are changing the lens in terms of the talent we are hiring for the agency. Apart from advertising professionals, we are also looking at people with a non-agency background such as data analysts, engineers and technologists. Diversity is critical to our business and I’ve agreed with our leadership team to aggressively pursue this.