Growing concerns over the economy slowing down worldwide has not taken the sheen off the Indian advertising industry as new international agencies are setting base in India, while those already present are expanding their operations.
McCann World Group's T.A.G. launched its operations in India early this month. This was followed by London-based agency Bartle Bogle Hegarty (BBH), which globally represents brands such as Johnnie Walker, Levis and Unilever's Axe. The entry of two international agencies in India is also a testimony to the fact that below-the-line (BTL) advertising industry in India is finally coming of age.
"The timing was critical to our decision to set up our second agency T.A.G. in India," says Prasoon Joshi, chairman of McCann World Group, India. Responding to the opinion that tough times would make setting up base in India more difficult, Simon Sherwood, global chief executive officer of BBH says, "The timing is right as building a business is not easy anyway."
Both T.A.G. and BBH are looking beyond the 30-second television commercial as their brand differentiators. BTL consists of platforms other than TV, radio and print. As such, it would include digital, mobile and other non-traditional mediums of advertising like out- of-home advertising in malls and multiplexes.
"T.A.G. will offer services in digital, retail, design, web design, game design, brand planning and media in India," says Joshi. "We want to find different ways to engage with the new India," says Sherwood on the company's plans for the country. Over the last year, national players such as Lowe India, Mudra and OMD have also diversified their operations to include BTL.
Earlier this month, Mudra launched ten integrated sports marketing divisions. During this year, the company has launched six new businesses in entertainment, trade exhibitions, consulting, public relations, rural and retail marketing spaces.
Madhukar Kamath, chairman and chief executive officer, Mudra Group, says, "BTL accounts for 35 per cent of our overall revenues currently and we expect it to account for 55 per cent in the next 3 years."
Mudra plans to launch two more business units in BTL in the current financial year. Even Lowe India and OMD are expanding their operations into non-traditional mediums.
Lowe India is expanding into new mediums such as business content creation, shopper marketing, digital marketing and content creation for Bollywood movies. OMD which set shop in India two years ago has also launched its digital marketing unit a few months ago.
Sir John Hegarthy, worldwide creative director, BBH, sums up the reason why advertising agencies are diversifying into non-traditional mediums. "The competition for brands is not other brands but life," he concludes.
