Consolidation has been something the OOH industry has been wanting for quite some time, so it was no surprise that the news of Dentsu Aegis Network acquiring OOH specialist agency Milestone Brandcom today has met with a positive response from OOH agencies.
Dentsu Aegis Network acquires majority stake in Milestone Brandcom
OOH agencies feel that with the market so fragmented, the presence of fewer but more stable agencies will be beneficial for everyone.
Sanjeev Gupta, MD of Global Advertisers says, “The industry needs consolidation. We need more of the bigger players to step in as this will be very good for the OOH industry.” Rajiv Saxena, MD of Blue Ocean Media felt that the merger would be beneficial to clients, while for the industry, it was also a good step. “If the buyers are less, then media pricing and professionalism move in a positive direction, which is good for the market,” he opined.
Though Yogesh Lakhani, MD of Bright Outdoor Solutions personally feels that staying independent has its own advantages, he agreed that it was a good sign for the market, especially since business conditions are currently slow. “We are in a period where client payments get delayed regularly so it is good to have a strong financial backing,” he said. When asked whether this would lead to increased competition in the market, Lakhani opined that as long as the quality of service as well as the sites is maintained and the client is confident about you, there is no need to worry about competition.
Rajan Mehta, Founder and CEO of LiveMedia also said that smaller players had no reason to worry. “I think what this could do is spiral consolidation where you have larger players stepping in and buying the smaller agencies and this is only going to create better competition and services.” Speaking about the acquisition, Mehta opined that combining Brandcom’s local understanding with Aegis’ global knowledge and systematic processes will create a great partnership. “If agencies provide better service then clients will have a great experience with OOH and this is good for the industry,” he added.
Founded in October 2009 and led by Founder and Managing Director Nabendu Bhattacharyya, Milestone Brandcom is one of the fastest growing integrated outdoor media agencies in the country. The agency has more than 100 active clients across a wide range of industries, and provides a full service comprehensive OOH offering, which includes an event promotion activation division, rural OOH activation, retail and digital OOH division. Milestone Brandcom recently launched the ‘Milestone Optimizer’, a tool which optimises OOH media plans by tracking 25,000 sites across India and providing Gross Impression Points of an OOH campaign, a first in India.
The Dentsu Aegis Network was formed on January 1, 2014, which comprises the Aegis business and all the Dentsu-owned companies outside of Japan. Dentsu had bought over Aegis in 2012 in a deal worth around $5 billion. The Dentsu Aegis Network is organized into 6 main divisions—Carat, Dentsu media, Vizeum, Posterscope, Isobar and iProspect.