Q] In the case of holding companies, decisions on agencies are usually taken based on the performance/revenue on a global group level, often India realities are quite different. For e.g., BBDO & TBWA have smaller footprints in India compared to DDB Mudra or FCB. What was the criteria for retaining some agency brands and retiring some key ones?
You’re right. Omnicom went through a process of evaluating the best roster of agency brands for global clients and decided to invest in TBWA, BBDO, and McCann. The criteria for that decision making, as it should be, is always based on the confidence of being able to win today and tomorrow, and the relevance of those agencies to a global client mix. The same principles have been applied to India as well. The acknowledgement of the fact that two of those networks you’ve mentioned have historically been smaller in India is the exact reason why TBWA is being fortified with the great Lintas brand locally.
It’s again evident in the way in which we have set up our digital spine with 22feet, Kinnect and MRM powering these global networks in our market. The outcomes are tailored and customised for every market. Even globally, Omnicom has made the decision to retain certain agencies under the Advertising Collective, and they’ve applied that spirit in helping us set up in India in a way that makes sense for our local market as well. So, we have a really good combination of the global networks and strong local jewels.
Q] How is it that amongst the legacy agencies only Lintas survived? FCB for example has performed spectacularly on the Cannes Lions stage in the recent years, while Mudra, where you have your roots is literally a school of advertising.
Well, it’s not just Lintas, actually. We also have Mudra and Ulka.
Q] But their names are not on the door anymore. We have seen such decisions to drop brands that are either strong on legacy like JWT or top performers like Dentsu Webchutney backfire on a perception level for the holding companies.
They will very much be on the door. So, while Lintas is attached in that sense to TBWA more directly, you will hear about Mudra and Ulka in the next 30-60 days as we haven’t fully announced our BBDO group structure yet. But they’re very clearly a part of that portfolio and we will continue to build the Ulka and Mudra brands as they both have some great clients and culture. And it’s because of Omnicom’s respect for the Indian market and for clients here, that we are able to do that.
Q] But with the global division of agencies into three big networks under Omnicom, are the clients okay with being moved to an agency that has a different philosophy from the one they chose to associate with? What were your conversations with clients like?
That’s an interesting one, what we found was that most clients, as long as they’re taken into confidence early, spoken to by the people they trust and assured that they will have continuity with their teams, will be understanding. They also acknowledge that it is exciting for them to be a part of a holding group that is prepared for the future. What’s important is that in the new scheme of things, many of our client-facing senior talent continues to be a part of our future.
Q] Also, client conflicts are unavoidable with the coming together of so many agencies. You brought Bernbach to India, last month for Volkswagen to avoid a client conflict with Tata Motors but can such customized solutions be created for the smaller clients as well?
I want to correct you on the thought process behind Bernbach, this is not a decision taken for Volkswagen for one market alone, it has existed in the other markets.
Q] And yet you brought Bernbach to India only after the merger, not before that…
The point I’m making is that Bernbach is the world’s most successful bespoke agency, just like Omnicom Media Arts Lab for Apple. So, this idea of an agency set up for a client is not about conflict at all. It is about being able to give those clients the attention they need globally and locally. Volkswagen has been working with Omnicom for decades now, and they believe in working that way. Now to your question on handling client conflict, which is obviously a very real question given the scale of what we’re trying to do. You’re right, it is much easier to create bespoke structures for clients who have scale. But, in a market like ours, there are emerging players in every category who may not have that scale. We have seen many clients work with holding companies who also accommodate their competitor. The only factor being, there should be a set of well-established protocols to protect the integrity of a client relationship.
Q] Recently we saw Lodestar’s (earlier IPG agency) client Samsung call for a pitch on the media side, and we have seen its competitor Apple historically work with OMD and TBWA (both agencies from Omnicom)—do you feel you have it all under control to avoid a similar situation on the creative side?
Hypothetical perhaps. I don’t know. You’ll have to ask Kartik (Sharma) that question.
Q] I mean do you think such situations can also arise on the Omnicom Advertising India side, is it a given that some business will have to be sacrificed to move forward here?
I think we’ll be okay. In every category, as you grow there will be 5-6 players at the very least, who require the services of a good agency. As long as those agencies are clear that the way work is done is independent and autonomous, with strong protocols in place, they can deliver. I’m reasonably confident that issues like these will not be an impediment in the growth of those agencies or in our ability to be able to compete for a larger share of the economy, and the best players in every category.
Q] Omnicom had planned to lay off 4000+ people globally to support the merger. From an India point of view, will there be further downsizing?
Generating cost efficiencies is important and we have already taken those actions in India. And the good news is that we are talking about well-run agencies, so we didn’t have to cut deep or cut to the bone. We ensured that we stay invested in the good talent which clients want to work with. So, we’ve taken tough decisions in areas which are not client facing i.e. support services where there is a fair amount of duplication — finance, admin, HR, IT etc. So, the short answer to your question is ‘no more’, you will not see any more restructuring or merger, acquisition related restructuring in India, from us at Omnicom Advertising anytime soon. You will see business as usual along with churn and attrition, which take place regularly in our industry.
Q] Is there a rough percentage on how many were laid off on the advertising side in India, besides those in support services?
We haven’t gone at it with an arithmetic approach. We’ve gone at it with a more strategic approach to say, listen, what can we do without impacting our clients or our ability to be able to win today and tomorrow, as opposed to having a number and chasing it.
Q] Also, besides information on key leadership, very little is known about the possible new roles of earlier agency leaders like Ram Jayaraman, Russell Barrett etc. Where are they going to be in the new scheme of things?
We’re working through some of those details. Interestingly even the details available in public were not formal announcements coming from Omnicom, we just sent out a few internal memos, which people/media picked up. There are a whole bunch of other very talented people, including folks like Russell, who are at this moment doing the jobs that they were doing earlier too. We’re in the process of finding that best fit for them in the new structure going forward. Every talented person who works in this company and who matters to the client will be taken into the future.
Q] Talking about leadership of agencies, let’s take McCann- Dheeraj Sinha comes from FCB and Rahul Mathew from DDB Mudra, will McCann be an amalgamation of three cultures now?
It’s an interesting question and it would be the same with TBWA and Lintas too. We’ve got people from different backgrounds; that’s part of the excitement of this acquisition. McCann is a strong agency and it will be a mix of what’s already making that company successful and the personalities of the leaders that will form the core of the agency’s culture.
Q] In this case, how much time have you given to your new leaders to get over the teething troubles and start firing as an agency?
The agencies are already doing well with a strong base, clients are excited too. Within the first six months we want to take the operating and the logistical parts of that integration out of the way. Because that part is of least consequence to clients. In the next 30 days, all of these agencies will be housed in their new environments with their new leaders and shall turn stronger as a team. It should start to show in our ability to be able to win and generate new business. Those metrics are the same.
Q] Consolidation takes time to implement, sometimes upto two years, will it be a slow year for you, growth-wise, what kind of target have you set for yourself for 2026?
Our growth won’t wait for two years. Will there be challenges along the way? Of course, but we can and we will-- that part of the ambition is crystal clear. These are great agencies, great clients to partner with and amazing talent, why should we not grow in the first year itself. We’ve made a reasonable amount of progress. Our friends at TBWA/Lintas are already sitting together in their new office. All the other agencies will follow. We’re 60 days in, and that’s already happened.
Q] Will all agencies be housed under one roof?
We are talking about close to 10,000 people in Omnicom in India across locations, so that option won’t be practical. Our objective is to house people within their coherent agency teams in one place. Like Govind and his TBWA team are already in the current Lintas office in BKC.
Q] This merger has changed the agency holding company rankings in India and globally, would you say ‘bigger is always better in advertising’?
Bigger is better, but better is even better. In our industry agencies are divided based on the structure- like good independent agencies and terrible independent agencies; good holding group agencies and terrible holding group agencies. Our focus has to be on building good agencies, which we’re blessed to have. Sometimes large clients want work done which small agencies can’t execute. Additionally, the scale is also attractive to talent because they get a bigger stage. I do believe that if you’re a good agency it helps to be big.
Q] We are looking at unified data and AI infrastructure with the coming together of Omni and Acxiom globally – but in the world of DPDP, it is not just scale but consent led and activation ready data that can make a difference. Do you think the smaller agencies may have an edge there?
I am not sure how that will work. How do small agencies compete on that front when we know that the investment required is more easily available in a larger setup. There are advantages to a small agency setup and there’s a role for that. I’m not wishing that away. But certainly, from the perspective of investment and capability building, it’s quite obvious that the larger holding groups are in a better position to be able to do that.
