‘The picture is very bad for bad advertising’

The Interpublic Group (IPG) has had more than its usual share of media coverage in recent times, thanks to its focus on India in the last one year. IPG officials have stated time and again that India had seen the single largest capital investment from the Group in 2007. IPG has been busy making several announcements since – the new leadership team with R Balki as Chairman; Charles Cadell roped in as CEO for Lowe India; Ashish Bhasin and Pranesh Misra elevated to global roles; and the renewed energy at Lintas Media Group that has seen a few firsts for the Indian media industry such as the payper- performance deal that it signed with Pinstorm and the shift to the ‘Collectives’.

All this has been happening under the stewardship of Stephen Gatfield, better known as Steve Gatfield. Gatfield has been CEO of Lowe & Partners Worldwide since February 2006, and its Executive Vice President, Strategy and Network Operations, since December 16, 2005. He had served as an Executive Vice President, Global Operations and Innovation of Interpublic Group of Companies Inc., since February 27, 2004. Earlier, he had served as Chief Operating Officer of Leo Burnett Company from 2001 to February 2004. He has varied international experience in new management team plan and implementing a streamlined international operating structure. He also works with IPG’s operating units to develop, improve and extend new models that allow Interpublic member companies to better deliver services to clients around the world.

In this interview with impact’s Noor Fathima Warsia, Gatfield speaks on various aspects of the advertising industry – Indian and global – and the role that Lowe Worldwide plays in this.

The investment that IPG made in getting complete control of Lintas India was enormous. Why did you seek a 100 per cent control, when clearly there are many examples today of part ownership, a 75 per cent control, where the benefi ts of ownership come without this kind of cost?

Normally, unless there is a desire to perpetuate a new energy in the business, it is very rare that sellers want to sell only 75 per cent of their business – up to 49 per cent is a different game, but more than that, the owner of the selling business is changing control from majority to minority, and that is a tough decision to make. Also, 75 per cent ownership simply means to have all the benefits of ownership, and none of the benefits of outright ownership. The reason that we acquired Lintas is because India is on a critical point in the global marketing economy. We wanted to ensure that the Lowe operations are well served to compete in India, and at the same time use the inherent strengths of India for our global media business.

In addition to India, there are many other markets such as Vietnam,Indonesia, the Middle East, pockets of Africa and Latin America that are exciting advertisers and investors now. Any plans for these markets?

We would soon announce an acquisition in one of those markets. We are investing very aggressively in this terrain – the likes of China, South East Asia, Russia, Latin America – these are very high on our investment programme. For these decisions, a lot is related to how a country’s jurisdiction is with regards to advertising.

New Print Order Grips Chennai

By Judy Franko