When Sam Balsara addressed the Media 360 gathering in Macau last month, he chose to focus on the contradictions that embody India’s promise on the global stage. It is a theme that has also proved fitting for the media agency that Balsara owns, Madison Media.
Earlier this year, Madison stunned the industry by taking a majority stake in GroupM’s MediaCom India, bucking the trend that has seen international networks hoover up every local player of any worth.
As India’s second largest media agency, of course, Madison is a local player of considerable worth. Exactly how much has been a subject of some contention, particularly for the many international networks that, over the years, have tried - and failed - to meet Balsara’s own valuation of his agency.
“We haven’t built this agency brick by brick based on our strong delivery and value system just so that we can hand it over to a global network at some opportunistic pricing,” explains Balsara.
“Most newspapers didn’t believe me when I said Madison is not for sale. But I do not have a philosophical point of view on remaining independent.”
What Balsara does have, say people who know him well, is a fundamental decency that should not be clouded by his undoubted skills as a negotiator. “Most people mis-perceive him as some sort of wheeler-dealer or shady character,” says former Starcom regional CEO
D Sriram, who spent three years at Madison in the mid-90s. “He’s not. He’s just genuine, and people respect that. He has my vote for Prime Minister.”
Not that Balsara is seeking higher office just yet. Instead, the 57-year-old has his hands full with an agency that now holds that rarest of possessions: a majority stake in a GroupM agency. The deal was driven by the media review conducted by Procter & Gamble, for which Madison has been the buying agency-of-record for several years. “It put pressure on the networks,” admits Balsara. “We were in the right place at the right time, but there was no pressure on Madison at all.”
The chutzpah of that last comment cannot be concealed by Balsara’s down-to-earth demeanour, but it rings true. “Most people are very weak negotiators,” points out Sriram. “Sam is very good at deciding his walk-away point and sticking to it, which makes him a very powerful negotiator. The biggest fear he must have had is Procter & Gamble asking him about being part of a network, even though the client knew it couldn’t replace him and get that level of performance.”
If anything defines Balsara, it is this commitment to performance or, as he terms it, “delivery”. He has little time for media agency schtick about consulting fees and branded content rights, making him something of an anomaly at Media 360. “I have a simplistic view,” he says.
“Maybe other agencies believe they can marginalise the role of the creative agency. We think we should do an outstanding job on what the client has hired us to do before taking proactive steps to knock somebody out of business.”
This view may be influenced by Balsara’s ownership of creative agency MC2, one of the many units housed under his Madison World holding structure. But the Indian’s ability to form genuine lasting relationships should not be underestimated, and forms the foundation of Madison’s success since it began life 20 years ago. “He will know everyone and remember something about their family,” points out Sriram. Or, as Balsara puts it a little more casually: “I work hard but I party even harder.”
Balsara likes his soundbites - “we never sell” is another favourite maxim - which may explain his evident appeal to the Indian media. And he clearly enjoys the attention, handing over a folder that contains a fistful of Balsara-inspired newspaper clippings. But there is little of the hubris that can characterise agency chiefs who appear often in the media. “He can be a bit dismissive of new constructs,” admits Sriram. “But then he doesn’t invest in 10 stupid ideas.”
Instead, investment has focused on the many divisions that now form Madison World, covering everything from rural marketing to sports management to public relations. Even here, Balsara is happy to flout industry norms, pointing out that the aim is not to provide clients with complete integration.
“Let’s be honest, there is no one that uses all of this,” he points out. “Many of these things were not started because we had a driving passion to grow or make money, but because I genuinely felt this is what a brand plan must have and there was very little of the specialist skill available at the time. We have embarked on a journey with Levi’s [which recently tapped Madison World to provide a range of services] but, so far, no one has asked us for an integrated service.”
Perhaps it is this unwillingness to pay lip service to industry ideals that explains Balsara’s intransigence about joining an international network. A refusal to pitch with third-party consultants provides yet another example of this attitude. “I’m extremely flexible but on certain fundamental issues I’m not willing to bend. We are the media experts.”
Certainly, he admits, financial issues have also played a role in his continuing independence. “Because we are not public, nobody suffers if something goes wrong other than me,” he explains. “Sometimes being dictatorial is good, although I am less so now.”
It also means that a dynasty is now in the offing, with daughter Lara - who leads many of the newer units - expected one day to take the reins from her father. Not that Balsara has any intention of taking a breather any time soon. “After a point in time, your body gets used to the adrenalin,” he says. “That’s one of the reasons I cannot enjoy a long holiday. The industry has shaped me.”
Sam Balsara’s CV
1988 Founder, Madison, chairman and MD, Madison World
1983 General manager, Mudra
1979 Head of client servicing, Contract Advertising
1976 Product manager, Cadbury India
1972 Home Products Marketing Agency - Sarabhai’s, management trainee
