AD Agencies

Why bigger agencies net smaller fish?

Published

12 years ago

March 18, 2014

MUMBAI: Passion drives creative minds to set up independent agencies. In a majority of cases however, after the initial burst, resources become a constraint and growth avenues out of reach.

While being able to do what you want, pitch to the client of your choice or leverage the tools of your choice continue to be the perks of going solo, at some point, the smaller independent agency is forced to reflect on how long it can continue to stand alone successfully.

This is probably when selling out to a larger entity seems like the best option. In the past couple of years, there have been several instances of big networks snapping up smaller, independent agencies; the most recent being DDB Mudra’s acquisition of Bangalore-based 22feet. Indiantelevision.com spoke to a cross-section of the advertising industry in a bid to understand what really drives network agencies to invest in independents or conversely, independents to sell out or as in some cases, hold on to their freedom.

Vineet Gupta of 22feet, who will soon take charge as MD of the new entity, 22feet Tribal Worldwide, says mergers and acquisitions (M&A) aren’t necessarily about losing independence. “We have always wanted to outperform and be ahead in the market. And in Tribal, we found a partner which had the same vision like us and hence, we went ahead by joining hands,” he explains.

Praveen Kenneth of Law & Kenneth – at the time Law & Kenneth was integrated with Saatchi & Saatchi – had famously said that Law & Kenneth was born out of passion and had always focussed on adding value to client brands and to the lives of the people it touched every day. The story of Law & Kenneth was an example of the Saatchi & Saatchi spirit of ‘Nothing is Impossible’, and the combination of Law & Kenneth’s stability, proven success and experience in India’s dynamic market place and Saatchi & Saatchi’s iconic status and mystique had resulted in a creative powerhouse called L&K Saatchi & Saatchi.

WebChutney, a digital agency founded in 1999, became part of Dentsu India Group when the network agency acquired 80 per cent stake in it in 2013. How has it benefitted the independent agency? Says, the agency’s co-founder Sidharth Rao, “Our unique chutney culture is the same but yes, being part of a global network has helped in terms of new alliances & smarter processes. One of the best parts is that we have access to global learnings which we think will be a big advantage going forward in our journey.”

For Naresh Gupta, CSO and managing partner of Bang in the Middle, the iYogi in-house creative agency that went independent in 2012, the best marriage is when creative and cultural freedom isn’t taken away and bigger agencies only provide support through finance and sources to scale up. “There has to be a cultural match before any formal arrangement is made because a group which has invested too much money in acquiring one doesn’t want it to fall. It will only want it to grow as it wants back the money it had invested in it,” says he.

Publicis’ South Asia CEO Nakul Chopra believes that while cultural and operational differences between the two agencies would never cease to exist, it depends on how well they make the marriage work. “If the home-work has been done well before the acquisition is made and the two are culturally close at the core, there are not many difficulties between them. We at Publicis have a well-oiled and tested process that allows us to achieve that goal,” he says, adding that the acquisition is also about ‘strategic fit’. “Ideally and normally, we would want to acquire an agency when it fulfils multiples of strategic goals. In parallel, we also look closely at the culture of that agency and how well it fits into the culture of our network. Only after this, do we decide on acquiring any agency.” Chopra insists that acquisitions are not like buying a shirt and either the agency is in talks with someone or someone approaches the agency. What matters is how transparent and deeply connected the two agencies feel before shaking hands.

Dentsu India group executive chairman Rohit Ohri echoes similar sentiments. “Network agencies are always on the lookout for a holistic view. There are some or the other gaps which need to be filled-up so network agencies look for agencies which can do so. The fundamental law of any acquisition is that the two parties work closely in the pre-acquisition period to get to know each other’s culture and get a sense of partnership. There has to be a chemistry match otherwise it can lead to a fallout past acquisition or the smaller agency can collapse. There has to be a meeting of minds,” he explains.

On the bigger agency trying to impose its culture on the smaller one, he gives the example of Dentsu’s Taproot acquisition close to two years ago. “The merger has worked well for both of us. Dentsu has been able to work on major accounts (Congress being the latest client) that were won after the merger. Taproot has been a leading light in the creative field and has a strong reputation. So we follow what they set out to achieve. It is the other way round for us. We at Dentsu are trying to assimilate that,” he says.

And not all mergers end on a good note. Remember what happened to Enterprise Nexus? The agency was created in 1996 when Enterprise (born out of the partnership between Mohammad Khan and Rajiv Agarwal in 1983) and Nexus (founded two years later when Agarwal left the agency to launch his own along with Arun Kale) joined hands.

However, what started off great, fizzed out soon when Agarwal and Kale, gave up their shares to Khan, making him the majority shareholder in Enterprise Nexus. The agency was later acquired by WPP and merged with Bates India.

With a few mergers ending on a bitter note, it hasn’t stopped the majority of firms from acquiring others or launching new ones. So does the buck stop at M&A?

According to Anil Kakar, founder of Gasoline, a lean agency structure based on a collaborative model where both like-minded creative talent and projects have been cherry-picked to ensure faster and more cost-effective solutions, “A lean agency structure ensures a greater investment of time and thought into a campaign, a greater control over the creative output, customised solutions, faster turnaround times and access to some of the best brains in the business.”

“Obviously it helps in terms of getting access to a larger client base as well as in leveraging the media strengths of the network. The network consists of a unique bunch of agencies each with their own particular strength which is very useful when pitching to global brands,” adds Rao.

Gupta offers a different perspective altogether. “Acquisitions work both way; most independent agencies don’t want to remain small and want to add muscle and that can be only added either by becoming a network agency or becoming a part of a network agency. Also, it is very difficult for an independent Indian guy to go international and become a network,” he says.

However, agencies that are “okay with what they have” may choose to remain independent. Otherwise, the question “Can I make the business grow?” is bound to crop up from time to time. “Our country is a very competitive one and it is a price-sensitive market. Clients don’t pay agencies for the amount of work they do for them,” he adds.

In sum, you need to tread on M&A with caution: while it is necessary for further consolidation and growth, it can’t be achieved at the altar of the agencies’ DNA.

Related Topics:22Feet acquisition advertising Agency DDB Mudra Law & Kenneth Merger Praveen Kenneth Saatchi & Saatchi Vinnet Gupta

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India’s Economic Survey 2025-26 calls for ban on junk food ads from 6am to 11pm

Published

1 week ago

January 30, 2026

indiantelevision.com Team

DELHI: India is staring down a junk food epidemic, and the government wants to fight back with an advertising ban. The Economic Survey, tabled in the Lok Sabha on Thursday, has pitched a radical proposal: prohibit ultra-processed food advertisements from 6am to 11pm across all media platforms.

The timing is hardly coincidental. India has become one of the world’s fastest-growing markets for ultra-processed foods: those calorie-laden concoctions of burgers, noodles, pizza and soft drinks that increasingly dominate Indian diets. The consequences are written in the waistlines of a growing number of Indians.

Excess weight among children under five has jumped from 2.1 per cent in 2015-16 to 3.4 per cent in 2019-21, the survey notes. More troubling still, over 3.3 crore children in India were obese in 2020, with projections suggesting that figure will balloon to 8.3 crore children by 2035.

The numbers for adults paint an equally grim picture. According to the 2019-21 National Family Health Survey, 24 per cent of Indian women and 23 per cent of Indian men are overweight or obese. Among women aged 15-49 years, 6.4 per cent are obese, whilst among men, 4 per cent are overweight, the survey said.

The pre-budget document doesn’t mince words about the scale of the challenge. To tackle ultra-processed foods, it advocates front-of-pack nutrition labelling for high-fat, sugar and salt foods, with warnings that restrict marketing to children and ensure trade agreements don’t undermine public health policy.

The survey also suggests restrictions on marketing infant and toddler milk and beverages, whilst flagging growing obesity among children.

The proposed marketing ban would run from 0600 hours to 2300 hours across all media, with mandatory enforcement of restrictions on marketing infant and toddler milk and beverages.

India isn’t treading new ground here. The survey points to Chile, which has integrated such laws, along with Norway and the UK, where advertisement restrictions are already in place for ultra-processed foods.

Britain recently banned junk food advertising before 9pm on television and online to reduce children’s exposure and curb childhood obesity. Further action on other marketing activities, including school and college sponsorship of events by ultra-processed food manufacturers, can be designed, the survey said.

Yet India’s regulatory landscape remains muddled. Rule 7 of the Advertisement Code prohibits misleading, unverified, or unhealthy advertisements but doesn’t define “misleading” with measurable or nutrient-based criteria, leaving interpretation subjective and inconsistent.

Similarly, the Central Consumer Protection Authority guidelines for prevention of misleading advertisements (2022) mandate that advertisements must not exaggerate health benefits or exploit children.

Yet they lack clear nutrient thresholds or a framework for identifying misleading claims in food marketing, the survey said, adding that this regulatory ambiguity allows companies marketing ultra-processed foods to continue making vague health, energy, or nutrition cues without violating any clearly defined standard, highlighting a critical policy gap that needs reform.

The stakes couldn’t be higher. India is one of the fastest-growing markets for ultra-processed food sales, contributing to chronic diseases worldwide and widening health inequalities.

The survey lays bare the commercial triumph of junk food in India. Sales of ultra-processed foods grew more than 150 per cent between 2009 and 2023. Retail sales surged from $0.9 billion in 2006 to nearly $38 billion in 2019, a 40-fold rise. It is during the same period that obesity has nearly doubled in both men and women, the survey said.

The document advocates a multi-pronged approach to tackle the rising consumption of ultra-processed foods (popularly known as junk foods), which includes burgers, noodles, pizza, soft drinks, and the like, warning it is contributing to chronic diseases worldwide and widening health inequalities.

Improving diets cannot depend solely on consumer behaviour change, the survey argues. It will require coordinated policies across food systems that regulate ultra-processed food production, promote healthier and more sustainable diets and marketing.

The gauntlet has been thrown. Whether India’s policymakers have the stomach to take on the junk food industry remains to be seen.

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PHD Media names Vinita Shrivastav VP – business planning to lead Marico mandate

Published

1 week ago

January 28, 2026

indiantelevision.com Team

MUMBAI: PHD Media has appointed Vinita Shrivastav as vice president – business planning, taking charge of the agency’s Marico portfolio and reinforcing its strategic leadership bench. The move signals the agency’s commitment to delivering future-ready, high-impact solutions for one of India’s most iconic FMCG brands.

Vinita brings over 17 years of experience across brand strategy, integrated marketing, media planning, research, and business leadership. Recognised as Best South Asian Strategic Planner of the Year by Campaign Asia, she is known for building insight-led, scalable growth platforms across categories.

She started her career with a research foundation at TAM Media, before taking on leadership roles across Reliance and Zee. She later joined Mindshare’s core strategy team, led the marketing vertical at IN10 Media, and most recently drove the L’Oréal business at Wavemaker, delivering integrated, high-impact media and brand-building solutions across markets.

In her new role, Vinita will steer the Marico mandate, focusing on strategic innovation, business growth, and integrated, future-ready media solutions. She will collaborate closely with both Marico and PHD Media leadership to build scalable, impactful brand platforms that deliver long-term business value.

“This appointment strengthens our strategic leadership and reinforces PHD Media’s commitment to insight-led planning and execution excellence. Vinita brings the analytical depth, commercial acumen, and strategic vision to drive innovation and growth for one of India’s most respected FMCG brands,” said a spokesperson for PHD Media.

Vinita said, “I am excited to join PHD Media and lead the Marico portfolio. In today’s dynamic market, building scalable, insight-driven brand platforms is critical. I look forward to collaborating with the teams at PHD Media and Marico to deliver strategic, high-impact solutions that drive long-term business value.”

With this appointment, PHD Media underscores its focus on category-defining brand partnerships and intelligence-led planning, ensuring the agency remains at the forefront of strategic media innovation.

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India’s top 100 advertisers set to chase Rs 1.15 lakh crore in 2026

Published

1 week ago

January 27, 2026

indiantelevision.com Team

New Delhi: India’s biggest advertisers are gearing up for a spending spree. Fresh Adex estimates show marketing spends crossing Rs 1.15 lakh crore in 2026, with digital accounting for more than half of total outlays and the top 100 brands tightening their grip on the market.

Data tracking ad spends across 2024 and projected growth through 2025 suggests rising concentration at the top. Around 35 per cent of total adex is expected to come from just the top 50 marketers, underscoring the growing clout of a handful of deep-pocketed brands.

India crossed the Rs 1,00,000 crore advertising milestone in 2025, posting over 10 per cent year-on-year growth, making it the fastest-growing major ad market globally. The pace shows little sign of easing.

At the summit, FMCG remains unshakeable. Unilever continues to lead the pack, with Procter & Gamble, Reckitt, Mondelēz International, Godrej Consumer Products, ITC, Coca-Cola, PepsiCo, L’Oréal, Amul, Nestlé and Colgate-Palmolive showing no appetite for budget cuts.

Reliance Industries is expected to overtake India’s second-largest advertiser, closing in on Unilever at the top of the table. Autos are the next big battleground, with at least 25 new car and two-wheeler launches pushing Maruti Suzuki, Hyundai, Honda and Hero MotoCorp to step up spending.

Digital-first brands are now firmly entrenched among the heavyweights. Amazon, Google and Flipkart sit alongside quick commerce players Swiggy, Zomato and Zepto, reflecting a decisive shift in where the money follows attention.

Fintech is emerging as the fastest-growing category. Groww, NPCI and Angel One are scaling spends rapidly, filling the vacuum left by gaming firms, which saw the sharpest pullback in 2025.

India’s home-grown stalwarts—LIC, Asian Paints, UltraTech Cement and Havells—continue to deploy capital steadily, while pan masala advertisers remain reliably aggressive, indifferent to cycles or sentiment.

Behind the numbers lies a structural shift. Television budgets are steadily moving towards connected TV, OTT platforms, digital video and OOH screens as advertisers chase sharper targeting and measurable returns.

The conclusion is blunt: the chase for India’s top 100 advertisers will be brutal in 2026—but the real opportunity may lie just beyond them. In a slowing global economy, India’s ad engine is still accelerating.