Media agencies push through India revamp

NEW DELHI: In sync with global media trends - including the

blockbuster move by Havas to take over Tempus - major media agencies are

restructuring operations in India, one of the largest markets in the

region.

The latest to make waves in India is the Starcom Media-Vest Group

(SMG).

One of the top three media holding groups in the world, SMG will merge

the media teams of its three advertising agencies - Leo Burnett India,

Ambience D'Arcy and Orchard Advertising, all Bcom3 agencies.

The merged entity will be headed by new managing director Andrey

Purushottam, who as Asiacontent.com MD launched MTV's online operation

in India. He replaces Praveen Tripathi who will be relocated to an

international assignment within SMG. Purushottam said there were three

fundamental principles to the merged group's future offering -

accountability, integration and technology.

"It is ironical that while media spend constitutes the largest component

of the client's marketing investment, media agencies have not

satisfactorily related this to brand deliverables like market share and

volumes. Effectiveness and efficiency are our twin goals."

Starcom India clients include Acer, Bayer, Birla Sun Life, Dabur

Healthcare, Fiat, Heinz, Linc Pens, Procter & Gamble, Raymond, Tata

Infomedia, Coca-Cola and Toyota.

In another development, Interpublic Group, has taken the next step in

line with its global consolidation under Magna Global, which will act as

negotiator for its three top agencies in India - McCann-Erickson,

FCB-Ulka and Lowe Lintas & Partners. The combined billings of the three

agencies are estimated to be US$380 million.

Meanwhile, Publicis and Cordiant Communications Group, which have formed

a media holding company NewCo for Zenith Media and Optimedia, have yet

to roll out operations in India. WPP has already consolidated its media

business in India under MindShare earlier this year. The agency has

billing of more than US$550 million.

- See analysis, p16.