New leadership and new challenges for the big players among media agencies in India are expected to set new trends that will define the domain in 2013. Here are five ways in which the sector will be impacted...
Breakthrough thought process
Vikram Sakhuja, Global CEO, Maxus Worldwide continuing to be based from India (a first for the industry) will see a new thought process coming from his office and the impact of this would be seen on the industry itself. As India plays headquarters to global functions, the task of the talent here will change. And after six years, media holding company GroupM will see new leadership under CVL Srinivas. Shashi Sinha too dons a tougher hat this year as the CEO for IPG Mediabrands and this will come with a new set of challenges for Sinha and a new set of demands from him. As these industry leaders prepare for what lies ahead, every decision they will make will impact the overall business.
Increase of value-added services
Media agencies have increasingly augmented their focus on digital, data and analytics, and other value-added services such as branded entertainment and so on to be able to offer more to their clients. Some of these domains have found some structure and footing and 2013 will see agencies reap the benefits of this. Agencies have understood that value-added services should be offered at a price, indicating more revenues to an agency, apart from regular revenue streams.
Consolidation of operations
Key marketers consolidating their operations has had a direct impact on the media agency business. Mars announced a new partner with whom it has consolidated its various businesses such as Mars chocolates, Wrigley and the pet food business. Sony is in the process of hiring an agency with whom it would park its consumer electronic business and the mobile handset business. A relatively smaller player, Bridgestone, too began the year by consolidating its media business with one agency. On the agency side, all eyes are on IPG Mediabrands and whether it would also consolidate its buying discipline this year. The Dentsu takeover of Aegis Media too is a development to watch out for on this front. Consolidation was always key to media but this year, the word is likely to find more significance for media agencies.
Inflow of new kinds of advertisers
The industry can expect to see the inflow of new advertisers who are looking for professional media agencies in their attempt to grow their businesses and connect with consumers. Even if large corporates do not increase budgets, media agencies can still benefit from the emergence of this set of advertisers.
Collaboration and co-creation
In the competitive environment that will define 2013, the ability of media agencies to work with different kinds of disciplines and industry stakeholders to create differentiated communication would be another tool that would give the sector an edge in the business of communication.