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Mad ad world needs to get madder!

Published

21 years ago

April 6, 2005

MUMBAI: We all know it’s a mad ad world out there. But, going by what was said at the concluding day of FICCI Frames in Mumbai today, it looks like the ad industry stalwarts wanted the ad world to get a whole lot madder!

And why not? Ads are what give us relief from the tear-jerkers one sees on television day in and day out. Advertising is all about creating innovative methods that help in connecting with the target audience without pushing the message too hard. The wackier the messages the better is the retention and brand recall.

Top ad industry honchos like Madison Communications CMD Sam Balsara, McCann-Erickson Regional Creative Director South and Southeast Asia Prasoon Joshi, Leo Burnett National Creative Director KV ‘Pops’ Sridhar, Lowe executive creative director R Balakrishnan (Balki) and ad and theatre personality Bharat Dabholkar had the audience in splits with their wacky sense of humour (a must in the ad world) during a session aptly titled ‘It’s a mad ad world.’

Although there seemed to be a bit of nitpicking among some of the panellists, the consensus remained that the ad world needs to get a whole lot wackier than it already is. Other requirements of a good ad which, while connecting to the consumer, would also drive the brand message home; was a mix of emotions, satire and sensitivity coupled with, yet again, a liberal dose of humour.

Joshi said, “There is a misconception among people that ad men are Wacky but nobody really knows the rougher side of advertising. It’s not an ad mad world, it is a maddening world where one has to constantly struggle for new ideas.”

He pointed out that insight was very important when creating an ad. Citing examples of Babool toothpaste and Pears soap, Joshi said the ads for these brands were made with ideas borrowed from real life situations. He also noted that India was one country where audio cues were very important and hence the use of a good background score in an ad can do wonders for the brand.

“It is difficult to get an insight all the time and when you don’t, you tend to take the third dimension and exaggerate in the ads. But people have given us the licence to exaggerate and we deliver the message in a subliminal way,” said Joshi.

Sridhar, on the other hand, said there were two parts to an advertising mind. One, use what you have learnt in the first 15 years of your life in advertising, which will bring in the element of innocence to see things without any malice in the message, and then to use the enthusiasm, simplicity and curiosity to know more, which you had in the first 15 years of your life.

“By using this, complex messages can be delivered in an emphatic way while connecting with people. Sheer entertainment cannot take you where you want to go. Treat your consumers as children by telling them your story in a simple way,” said Sridhar.

Citing the example of the latest McDonald’s ads, which stressed the cheap prices menu, Sridhar drove home the point that it was important to know the mindset of the target audience and make the communication accordingly.

“There are no rules in advertising and hence no one way that ads need to be made. People want to see interesting things. I dispute every theory there is about advertising,” emphasised Balki.

An interesting point he made was that since Indians are driven by sorrow and tear-jerkers, be it in the movies or the soaps that are aired on TV, admen should also cash in on it and go the teary way in their ads, he added.

Countering the point that Joshi made, Balki said one should try and connect with the consumer irrationally rather than borrowing from their lives. “Give back something new to the consumer. An advertiser should lead the consumer, not follow him,” held Balki.

Nonsense needs to become the cult and that’s the way forward in the mad world of advertising. He also said in advertising, theories change every year and that’s the way to evolve.

Again countering a point Joshi made, Balki said it was wrong to say that one should depend on audio cues to send the message to people. “Indians have a lot of visual appeal too and as an advertising community, we need to be receptive to change,” he concluded.

When asked by Balsara whether he was serious about what he said about ads going the tear-jearker way, Balki stressed that he was very serious because he firmly believed that Indians are driven by emotions and drama.

The man behind the evergreen, smart and sassy Amul ads-Dabholkar-feigned nervousness on being asked to speak and also managed a few digs at himself! He drove home the point that while making an ad one shouldn’t keep in mind what is being said, but whom they are saying it to. “Creativity works in advertising and great ideas don’t require too much money to be pumped in,” he said.

All in all, a great session with the wacky minds of the industry, which works hard to take the brand message across to the consumer. Whether via humour, visuals, audio or sentiments. it’s their call!

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Innocean renews global media partnership with Havas

Published

4 weeks 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.

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Dentsu ad report 2026 flags digital dominance as retail media soars

Published

4 weeks 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.

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Publicis Groupe posts strong revenue as AI drives demand

Published

1 month 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.