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An ‘Infectious’ association

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MUMBAI: For colleagues at the then Saatchi & Saatchi who saw them fighting with each other, it came as a surprise when Ramanuj Shastry and Nisha Singhania quit within days of each other, to start an enterprise of their own.

Singhania makes no bones about it. “We still have a lot of fights. Of course, it’s all related to work, but we aren’t the kinds who will just nod our heads to what the other person has to say,” she admits. How do they resolve these conflicts? “We try and convince the other. At the end of the day, it is all about logic and creativity,” she answers.

What began as an association when the duo first met in Rediffusion Y&R blossomed into an up-and-coming agency christened ‘Infectious’. Ask them why such a title and Singhania says it has to do with their belief that their work should be infectious. “We wanted to solve clients’ business problems, rather than focus only on creating communication like large agencies. Our work is to engage people and for that to happen, the work had to be communicable. We wanted to start an epidemic of good with ideas that spread,” she adds.

The freedom to do the kind of work the two of them wanted to was the mainstay of this self-funded agency. “We wanted to ‘do’ as well as ‘say’. For instance, when Camlin asked us to create a print ad for Children’s Day, we ‘did’ an activity instead. We created a ‘join the dots’ ad, which kids had to colour and parents were urged to upload on their Facebook page. It was a very successful engagement and within 24 hours, took the likes on the Kokuyo Camlin FB page from 150 to 15,000,” says Shastry.  The activity went on to be nominated by Facebook Studio for best use of the social networking website by any brand.

According to Singhania and Shastry, what sets their agency apart is the quality of ideas, lesser turnaround time, and personal involvement in every business. The client list is a mixed bag of biggies like HCL, DNA and Camlin and start-ups like Pied Piper and Braces & Smiles. For some clients, the agency handles all their marketing requirements while for others, it looks after specific projects.

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For an organic set up, Infectious was lucky to have bagged two clients even before it launched. However, Singhania and Shastry are candid about the fact that clients are usually more comfortable giving business to larger agencies. Besides, it did take them a while before winning the confidence of heavyweights like HCL and DNA.

Infectious is headquartered out of Mumbai with a presence in Chennai, Delhi and Kolkata and has a young, energetic, hand-picked team of 15 running it. “We have worked in various agencies, so when people heard that we were starting something of our own; we got a lot of calls, especially from the youngsters. And since we have worked with them, so we knew what we could expect from them. We are blessed to have hand-picked talent,” says Singhania.

In addition to having a young team, the agency saw no harm in advertising itself. “Very few advertising agencies ever advertise about themselves. What is the harm in doing so? The logo adaption is our way of having fun. Digitally, one can do so much to engage with people, let alone clients,” says Shastry. Though he quickly adds that at its core, the business is still about ideas and digital is only a medium. Speaking of elections, he says that most political parties engaged and optimized their reach via the digital medium. Even Infectious created a special campaign along with DNA to urge people to go out and vote.

What do the next five years look like for Infectious? “Five years is a very long time. We are a ‘work in progress’ agency, with plans for the next 100 days,” say Shastry and Singhania at once.

What about network agencies snapping up independent agencies? The duo feels that in most cases, it is a win-win situation where network agencies bring in resources and scale while independent agencies bring in local expertise.

And with Goafest coming up, the agency which is all for awards as long as they are for real work, the future holds only great promises.

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One wouldn’t be wrong in saying that like Monday mornings and coffee (chai, in some cases), Singhania and Shastry are a perfect combo.

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Innocean renews global media partnership with Havas

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MUMBAI: Innocean has renewed its global media partnership with Havas Media Network following an internal review across Hyundai Motor Group brands.
The renewed mandate spans Hyundai, Kia and Genesis across Europe, the Middle East, Asia Pacific and Latin America. The work will be coordinated with Innocean’s international teams in Seoul, Frankfurt, Dubai, New Delhi and Jakarta.

The refreshed alliance is designed with a sharper focus on data and technology, aiming to connect the dots across customer acquisition, conversion and retention as the Group’s global audience continues to diversify.

Innocean head of global business Steve Jun, said the extension reflects a shared push for stronger, data-led media performance across key markets. He added that the partnership would focus on creating more connected and effective customer experiences for Hyundai Motor Group brands.

Havas Media Network global CEO Peter Mears, described the relationship as one built on innovation and global scale. He said the next phase would lean on the network’s Converged.AI platform to deliver seamless, data-driven media experiences and drive business outcomes for the automotive brands.

The renewed partnership officially commenced in January 2026.

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Dentsu ad report 2026 flags digital dominance as retail media soars

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INDIA: India’s advertising industry is entering a new phase of structural transformation, with digital media now the central growth engine, according to the Dentsu digital advertising report 2026.

Total advertising spends closed 2025 at Rs 1.21 lakh crore, up 8.3 per cent year on year, and are projected to reach Rs 1.40 lakh crore by 2027, implying a compound annual growth rate of over 7 per cent.

Digital advertising accounted for Rs 71,621 crore in 2025, representing 59 per cent of total spends. By 2027, digital’s share is expected to rise to around 70 per cent, with spends nearing Rs 98,034 crore.

The report stresses that this is no longer a temporary shift but a permanent rebalancing of advertising priorities, driven by mobile-first consumption, short-form video, creator ecosystems, embedded commerce and AI-led optimisation.

Retail media has emerged as the fastest-growing segment, with ad spends on e-retail platforms reaching Rs 17,601 crore in 2025: a surge of nearly 56 per cent year on year. Retail platforms are evolving into full-funnel media ecosystems, linking storytelling directly with purchase outcomes through first-party data.

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Within digital formats, social media leads with a 29 per cent share, closely followed by online video at 28 per cent, while paid search contributes 23 per cent. Online video is expected to overtake social as the largest digital format over the next two years.

Programmatic buying now accounts for 42 per cent of digital spends, exceeding Rs 30,000 crore, and is increasingly becoming the default media operating layer across video, connected TV and retail platforms.

FMCG remains the largest advertising category at 30 per cent of total spends, followed by e-commerce at 18 per cent, which also recorded the fastest growth.

Dentsu South Asia chief executive Harsha Razdan said the most meaningful industry shift has been in how consumers consciously allocate attention.

Dentsu South Asia president and chief strategy officer Narayan Devanathan, added that the next growth phase will belong to organisations that successfully integrate creativity, data, media and technology.

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Publicis Groupe posts strong revenue as AI drives demand

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PARIS: Publicis Groupe is laughing all the way to the bank whilst its rivals scramble to catch up. The French advertising colossus reported full-year 2025 net revenue of €14.5bn, marking its sixth consecutive year of outperforming the industry. Organic growth hit 5.6 per cent, accelerating past its five-year compound annual growth rate of 5.0 per cent.

The secret sauce? Artificial intelligence-powered products and services, which contributed roughly 300 basis points to growth. Arthur Sadoun, chairman and chief executive, has staked Publicis’s future on becoming clients’ “most valuable partner” for what the firm calls “agentic business transformation”—essentially helping companies build enterprise-grade AI solutions that actually make money.

The fourth quarter proved particularly robust, with organic growth of 5.9 per cent despite tougher comparisons. Connected media, which accounts for 60 per cent of the business, surged with high-single-digit growth. Creative and production services delivered mid-single-digit expansion. Only the technology consulting arm stumbled, finishing nearly flat for the year as clients adopted a “wait-and-see” attitude—a malaise afflicting all IT consulting firms.

Geography tells a tale of American dominance. The United States, representing 57 per cent of group revenue, grew 5.2 per cent organically for the year, cementing Publicis’s position as the market leader. Europe managed 4.2 per cent growth, whilst Asia-Pacific posted 5.8 per cent, with China impressing at 6.0 per cent. The most dramatic expansions came from emerging markets: Latin America roared ahead at 18.7 per cent, whilst Middle East and Africa surged 10.8 per cent.

Operating margin improved to 18.2 per cent from 18.0 per cent, delivering 50 basis points of operating leverage. Crucially, Publicis reinvested 30 basis points—totalling 230 basis points overall—into AI capabilities, talent upgrades and new business development. The remaining 20 basis points flowed straight to the bottom line. Michel-Alain Proch, chief financial officer, called it “the highest operating margin in the industry”.

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Free cash flow before working capital changes reached €2.03bn, up 10.6 per cent from an already-record 2024. The firm deployed roughly €1bn on bolt-on acquisitions targeting identity resolution, pharmaceuticals, influencer marketing and sports marketing. Client retention remained stellar at 98 per cent for top-100 clients, whilst new business wins exceeded $8bn.

Headline earnings per share climbed 6.6 per cent at constant currency to €7.48. In dollar terms—increasingly relevant given Publicis’s American dominance—EPS rose 7.0 per cent to $8.45. The board proposed a dividend of €3.75 per share, up 4.2 per cent, representing a payout ratio of 50.1 per cent, which Publicis claims is the highest in the industry.

The financial fortress looks impregnable. Net debt turned into net cash of €548m by year-end, down from net cash of €775m the previous year after funding acquisitions. The firm maintains €2bn in undrawn committed credit facilities and €4bn in cash and marketable securities. Average net debt to EBITDA stood at a negligible 1.0 times.

Industry sectors showed divergent fortunes. Consumer goods clients increased spending by 20 per cent, whilst automotive rose 14 per cent and financial services climbed 11 per cent. Technology clients, however, cut budgets by 7 per cent, and telecommunications spending dropped 2 per cent.

Publicis’s AI strategy extends beyond client services to internal transformation. The firm is “agentifying” processes using AI agents, equipping all 100,000-plus employees with AI tools through its Marcel learning platform. The goal: make everyone “AI-fluent” whilst boosting productivity and results. The company reckons AI-powered capabilities grew 20 per cent organically in 2025.

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Looking ahead, Publicis guided for 2026 organic growth of 4.0 to 5.0 per cent—marking a potential seventh consecutive year of industry outperformance. Operating margin should tick “slightly” higher from the already-elevated 18.2 per cent whilst maintaining “high levels” of investment. Free cash flow is targeted at roughly €2.1bn, based on an exchange rate assumption of €1.20 to the dollar, earmarked for dividends, maintaining a stable share count and more bolt-on acquisitions.

The firm’s longer-term ambitions border on audaciousness. Management projects annual net revenue growth of 6.0 to 7.0 per cent and earnings-per-share expansion of 7.0 to 9.0 per cent, both at constant currency. The logic: AI is fragmenting the marketing landscape, with no top client spending more than 4.0 per cent of budget on any single platform. Publicis reckons its “unique connective tissue” positions it perfectly to orchestrate this complexity.

The advertising world has witnessed a decade-long reshaping. Since 2017, when Publicis began its data and technology pivot, the firm has invested €14bn integrating capabilities whilst rivals dithered. That first-mover advantage in AI has compounded. Publicis now claims the number-one position in global media billings, including in the crucial American and Chinese markets. Its market capitalisation exceeds the combined value of its next two competitors.

Yet competition is heating up as everyone piles into AI. Omnicom’s proposed merger with IPG would create a formidable rival. Technology giants are muscling into advertising with their own AI platforms. And clients are becoming more sophisticated, building in-house capabilities and squeezing agency margins.

Publicis is betting the farm that complexity favours the orchestrator. As marketing technology proliferates and AI agents multiply, companies will need partners who can connect the dots. Whether that vision proves prescient or hubris will determine if Sadoun’s transformation becomes a case study in strategic brilliance or just another expensive pivot that failed to justify its price tag. For now, though, the numbers suggest Publicis is winning the AI arms race in adland—and widening the gap with every quarter.

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