AD Agencies

82.5 Communications makes a mark in year one

Published

6 years ago

February 14, 2020

MUMBAI: It’s a toddler and it is already boasting of achievements attributable to the big boys in advertising. Mumbai-hqed creative boutique Eight Two Point Five ( 82.5) Communications is the agency we are referring to. It came into existence just a year ago (26 January), as a reincarnation of Ogilvy agency Soho Square, with a sharp focus on providing communications services to India-specific brands. And it has managed to net nine new clients out of a total of 11 pitches it made, since then. A very good run, and a very high rate – something not many newborns in advertising can boast.

Its new client roster looks impressive: mandates from Nestle Milo, a few dairy projects with the multinational, IDBI Bank, Haldirams North, Hero Lectro, brands from the RSPL group (the maker of Ghari detergent), Campus Shoes, Pearson Education and Jeeru a Mumbai-based carbonated drink. Of course, 82.5 inherited some existing business from Soho Square as well: ACC, Tata Motors, Bisleri, Havells, Himalaya Herbals, ITC Goldflake.

“We are a bit selective about what we do,” says 82.5 Communications co-chairman & CEO Kapil Arora, adding that there is a clear understanding of where and why to pitch and because of that, the company even refused some clients early on. “On the basis of the conversations that we bring to the table, clients get comfortable and say we want to work with you,” he explains.

Arora reveals that the coming few months will be about consolidating what it has picked up in 2019 and the agency will get into growth mode only from March.

Has the rebranding exercise from Soho Square to 82.5, and labelling itself as an India-centric agency paid dividends?

“We have built a profile of interesting India-first businesses that resonate with our positioning, “ highlights Arora. “Ninety per cent of our client mix is comprised of India-first clients. But there are global brands like Milo, which wanted a Tamil Nadu insight reflected. So, they too see value in our India-first expertise and approach.”

Ogilvy India chairman and CCO Worldwide Piyush Pandey too believes it has. “This was a slot that was vacant,” he says. “82.5 has filled it well.”

And proof of that is the rewards it has got. 82.5 Communications’ edgy work last year with its quirky Samajhdar Jante hai campaign for Bisleri featuring camels got it the Grand Effie in January 2020.

The agency has not stayed still, rejigging the way it functions, when it felt it was needed. When it started it kept brand custodianship, strategy and content expertise in-house while outsourcing services like media, social, PR retail and activation to partners. It kept that circle open wide. Now it has tightened that ring of allies restricting Itself to WPP group outfits.

“As a small outfit it made absolute sense to work with partners to offer allied services,” says Arora. “ In implementing that model, we had a few learnings and we reduced that circle. This helps us retain better quality control and ownership for our clients and a move like the WPP campus really aids us in that regard.”

Arora was brought in as CEO from Ogilvy North in June 2019 when the then CEO VS Srikanth – who joined 82.5 from Bates CHI & Partners – decided to part ways to set up his own venture in the tourism sector.

Since then, he along with chairman & CCO Sumanto Chattopadhyay, have been working on hiring talent to continue offer clients classy service and the creatively edgy work it is getting known for. In September, Arora roped in Rishabha Nayyar national strategy lead reporting to him directly. Last month, the agency recruited creative veteran Preeta Mathur as head of its Delhi creative.

The agency has four branches Delhi, Mumbai, Bengaluru and Kolkata, with Delhi growing the fastest, hence the hiring of Mathur. More recruitment is likely to happen in the coming few months.

Chattopadhyay and Arora are also focusing on building language-thinking skills within the agency. Arora highlights that they have managed to get it right with Bengali, Tamil and Marathi – and of course Hindi and English. “This repertoire will continue to increase through a mix of in-house talent and a circle of friends from the local film and theatre circuit,” he elaborates.

Arora believes that 82.5 is a work in progress agency. “We will continue to evolve,” he says. “We have laid a strong foundation. As long as we pivot, change and stay relevant in terms of what clients require from us, in these trying economic times, we have a strong future. We are very bullish.”

Which is what Pandey is banking on. Remember, it was he who was the prime architect of the initiative to build a second agency within the Ogilvy network in India.

Up Next

Headspace to launch services for media & entertainment HR professionals

Don't Miss

Brands and Valentine’s Day campaigns 2020

Click to comment

AD Agencies

Innocean renews global media partnership with Havas

Published

1 week ago

February 6, 2026

indiantelevision.com Team

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.

AD Agencies

Dentsu ad report 2026 flags digital dominance as retail media soars

Published

1 week ago

February 4, 2026

indiantelevision.com Team

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.

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.

AD Agencies

Publicis Groupe posts strong revenue as AI drives demand

Published

1 week ago

February 3, 2026

indiantelevision.com Team

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”.

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.

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.