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Tag: Omnicom

  • Interbrand to build Digital Branding in India

    MUMBAI: Omnicom‘s branding firm Interbrand, present in India through Water Strategic Branding and Design, will now also be focusing on the digital branding space.

    Interbrand European digital director Simon Smith said, “Digital, unfortunately, is seen as just another medium and while many more marketers are waking up to its potential, they tend to see it as a way to reach their audiences in a targeted, cost effective manner. In that sense, they see it more as a communication medium instead of a branding medium. There‘s a lot more than communications that you can do!”

    Smith feels that the digital branding space still has a lot of untapped potential that savvy marketers could use to build strong brands. Water head and chief strategist Ashish Mishra said, “While digital itself has become all-pervasive in today‘s world, digital branding still has a long way to go. Currently, the medium is used more for downstream activities and tactical communication. With Interbrand focusing the space, we believe the digital space itself will move upstream and begin to play a strategic role. Interbrand‘s core belief is that brands have the power to change the world. And Brands that have a socio cultural evangelism at their core have a far greater chance of espousing causes & conversations in a genuine way.”

    In order to help that foray, Interbrand intends on working closely with the local talent in India. “Indians understand the cultural nuances best and are best placed to leverage digital branding here,” Smith asserts.

    Smith started his career in computer game design for Sony while still at University. After completing his first degree in Industrial Engineering, he got involved with creative departments during the dotcom boom. These early experiences exposed him to gaps between the digital and traditional marketplace which he has since been striving to fill.

    Interbrand was started in 1974 and has since been involved in creating and managing brands as valuable business assets, not just logos. Interbrand operates through 40 offices worldwide and offers disciplines including analytics, brand strategy, brand valuation, corporate design, digital brand management, internal brand engagement, brand naming, packaging design, retail, verbal and visual identity. Some of the brands associated with Interbrand worldwide include 3M, AT&T, BMW, Godrej, P&G, Thomson Reuters and many more.

  • IPG, Omnicom in JV for $1 bn Chevy account

    IPG, Omnicom in JV for $1 bn Chevy account

    MUMBAI: In a first of its kind move, global giants Omnicom and Interpublic Group have entered a 50:50 joint venture to service the global creative account of General Motors‘ brand Chevy.

    The JV, Commonwealth, will be led by a global advisory board of eight members including McCann Worldgroup South Asia president Prasoon Joshi.

    The collaboration is between Omnicom owned Goodby Silverstein & Partners, which was previously Chevy‘s lead agency in the US and IPG’s McCann Erickson, the brand‘s lead agency in India, China and Latin America will be called Commonwealth.

    The size of the account serviced by the JV is $1 billion. Prior to this Chevrolet employed 70 agencies across the globe.

    The account was awarded to the two agencies after a multiagency pitch that started at the end of 2011. The other agencies involved in the pitch include Publicis Groupe and Cheil Worldwide.

    The new business which will be based in Detroit, will develop creative campaigns across all media platforms for Chevrolet.

    Earlier this year GM awarded the global media mandate to Aegis‘ Carat Media.

    The global advisory board will oversee creative initiatives and strategy. Goodby Silverstein & Partners founder Jeff Goodby will serve as creative chairman while other members will include McCann Worldgroup Latin America chairman and chief creative officer Washington Olivetto and McCann New York and London chairman and chief creative officer Linus Karlsson.

     These four creative leaders will work in collaboration on all major creative initiatives and resource allocations. Campaigns will be handled through global hubs, which will operate in Detroit, Milan, Mumbai and Sao Paulo.

    According to the company‘s annual report GM spent $4.47 billion on advertising in 2011 most of which was used to market Chevy. The company said that cutting back on the number of agencies, and streamlining ad production and its media buying process could save the company $2 billion over the next five years.

  • Star Health awards media account to OMD

    Star Health awards media account to OMD

    MUMBAI: Star Health and Allied Insurance company has awarded its media mandate to Omnicom‘s OMD India.

    The size of the account is Rs 100 million, according to sources.

    OMD India begins work on the business from April 1 2012. The agency won the account following a multi-agency pitch.

    The incumbent on the business is Lodestar UM.

  • Omnicom Q4 net income up 10% to $272 mn

    Omnicom Q4 net income up 10% to $272 mn

    MUMBAI: The Omnicom Group has posted a 10.3 per cent jump in its net income for the fourth quarter of the fiscal ended 31 December 2011.

    The marketing and corporate communications company’s net income for the quarter stood at $271.9 million, as against $246.5 million in the corresponding quarter of the previous fiscal.

    In a tough economy, the company’s worldwide revenue has seen 7.4 per cent increase to $3.85 billion, as compared to $3.59 billion in the year ago period. Company’s domestic revenue during the quarter has seen a 5 per cent increase to $1.93 billion (from $1.84 billion). International revenue increased 9.9 per cent to $1.92 billion compared to $1.75 billion in the corresponding quarter of the previous fiscal.

    In category wise division, the revenue from advertising made up for 47.5 per cent of the total income at $1.83 billion followed by CRM at $1.39 billion (36.1 per cent), speciality at $318.8 million (8.3 per cent) and PR at $310.6 million (8.1 per cent) in the fourth quarter.

    Geographically, United States region recorded a growth of 5 per cent at $1.93 billion. The UK recorded a growth of 5.9 per cent at $328.3 million. The Euro currency markets region was the only region to register a negative growth of 2.9 per cent with revenue of $723.3 million. The rest of the world recorded maximum growth of 25.5 per cent, garnering a revenue of $872.6 million.

    Meanwhile, for the full fiscal ended 31 December, Omnicom‘s net income jumped 15.1 per cent to $952.6 million, from $827.7 million a year ago.

    Revenue during the fiscal jumped 10.6 per cent to $13.87 billion, from $12.54 billion. Advertising contributed to 46.1 per cent of the total revenue at $6.40 billion while CRM made for 36.5 per cent of the yearly revenue at $5.07 billion.

    PR fared better over the whole year as opposed to the fourth quarter bringing 8.8 per cent of the revenue at $1.21 billion, followed by specialty at $1.19 billion (8.6 per cent).

    During the full fiscal, the other markets recorded a 30.7 per cent growth, the UK market grew at 12.5 per cent, the US markets saw 5.5 per cent growth while Euro currency markets grew at 4.9 per cent.

  • Omnicom to acquire majority stake in Mudra Group

    Omnicom to acquire majority stake in Mudra Group

    MUMBAI: US-based advertising giant Omnicom Group is upping its stake in Anil Ambani’s integrated marketing communications company Mudra Group in a bid to significantly expand its service capabilities and presence in India.

    Omnicom, which at present holds 10 per cent stake in the Mudra Group will increase the holding to 51 per cent. As part of the agreement, Omnicom will also extend its partnership with the Reliance ADA Group and Reliance ADAG chairman Anil Ambani will join the Omnicom International Advisory Committee.

    The deal will give Omnicom a strong foothold in the Indian market, where it is far behind its international competitors like WPP.

    “This acquisition is an important step in achieving Omnicom‘s strategy to extend and deepen our presence in rapidly growing markets,” said Omnicom Group president and CEO John Wren. “Our vision is to be a source of innovation in every market we serve. Mudra is widely acknowledged as an outstanding company with impressive creative product and expertise in a broad range of disciplines. Mudra‘s innovation and depth of talent will strengthen our business capabilities not only in India but around the world.”
     
    Mudra Group has a four agency networks: branding and communications agency Mudra India; marketing and advertising agency DDB Mudra; integrated engagement and experiential agency Mudra Max; and Ignite Mudra. It has 26 offices across the country and an extensive field activation network.

    “DDB has been an excellent partner over the years. We have benefited immensely from the collaboration and transfer of knowledge from around the globe. We are proud to belong to such a storied network,” Mudra Group CEO Madhukar Kamath said. “Omnicom and DDB have clearly been the inspiration for Mudra Group‘s transformative growth over the last five years. My colleagues and I look forward to the next decade of explosive growth in the Indian market.”

    DDB Worldwide president and CEO Chuck Brymer noted, “This acquisition will further unite two companies that have long held the same values, creative goals and ambitions. Under Madhukar‘s leadership, Mudra is the original challenger brand of the Indian communications industry, and it shares DDB‘s culture of creative excellence. Together, we will create even greater growth for our clients in this rapidly changing, technologically driven region.”
     
    DDB and Mudra Group‘s relationship began in 1988 and later in 2007 the two companies formed DDB Mudra, which established DDB India, Tribal DDB, Rapp and DDB Health & Lifestyle in the Indian market.

    DDB Asia Pacific CEO John Zeigler added, “Mudra has an impressive history as both creative leaders and strong believers in integrated solutions making them one of the most innovative companies in India.”

    Omnicom Group EVP and CFO Randall Weisenburger noted, “In addition to significantly expanding our service capabilities in the region, this partnership will bring with it an exceptional Shared Services and Operations Center in Ahmedabad that will help Omnicom more efficiently expand its other operations in India. Additionally, Mudra recently moved into a new headquarters facility in Mumbai called Mudra House, a sustainable building and one of the few in India to be awarded LEED (Leadership in Energy and Environmental Design) Gold certification. Mudra House is widely acclaimed for its conservation features and state of the art technology.”