Media agencies push through India revamp

<p>NEW DELHI: In sync with global media trends - including the </p><p>blockbuster move by Havas to take over Tempus - major media agencies are </p><p>restructuring operations in India, one of the largest markets in the </p><p>region. </p><p><BR><BR> </p><p>The latest to make waves in India is the Starcom Media-Vest Group </p><p>(SMG). </p><p><BR><BR> </p><p>One of the top three media holding groups in the world, SMG will merge </p><p>the media teams of its three advertising agencies - Leo Burnett India, </p><p>Ambience D'Arcy and Orchard Advertising, all Bcom3 agencies. </p><p><BR><BR> </p><p>The merged entity will be headed by new managing director Andrey </p><p>Purushottam, who as Asiacontent.com MD launched MTV's online operation </p><p>in India. He replaces Praveen Tripathi who will be relocated to an </p><p>international assignment within SMG. Purushottam said there were three </p><p>fundamental principles to the merged group's future offering - </p><p>accountability, integration and technology. </p><p><BR><BR> </p><p>"It is ironical that while media spend constitutes the largest component </p><p>of the client's marketing investment, media agencies have not </p><p>satisfactorily related this to brand deliverables like market share and </p><p>volumes. Effectiveness and efficiency are our twin goals." </p><p><BR><BR> </p><p>Starcom India clients include Acer, Bayer, Birla Sun Life, Dabur </p><p>Healthcare, Fiat, Heinz, Linc Pens, Procter & Gamble, Raymond, Tata </p><p>Infomedia, Coca-Cola and Toyota. </p><p><BR><BR> </p><p>In another development, Interpublic Group, has taken the next step in </p><p>line with its global consolidation under Magna Global, which will act as </p><p>negotiator for its three top agencies in India - McCann-Erickson, </p><p>FCB-Ulka and Lowe Lintas & Partners. The combined billings of the three </p><p>agencies are estimated to be US$380 million. </p><p><BR><BR> </p><p>Meanwhile, Publicis and Cordiant Communications Group, which have formed </p><p>a media holding company NewCo for Zenith Media and Optimedia, have yet </p><p>to roll out operations in India. WPP has already consolidated its media </p><p>business in India under MindShare earlier this year. The agency has </p><p>billing of more than US$550 million. </p><p><BR><BR> </p><p>- See analysis, p16. </p><p><BR><BR> </p>

by | 08/03/2001