Ogilvy & Mather India: On a growth trajectory or grappling with slowdown blues?
The agency’s revenue from operations stood at Rs 331.1 crore for the year ended December 2018 as against Rs 340.1 crore in the previous year
WPP Group-owned advertising agency Ogilvy and Mather India has reported a dip in revenue from operations from Rs 340.1 crore to Rs 331.1 crore for the year ended December 2018, the lowest revenue from operations recorded in the last five years, according to financial data accessed by business intelligence platform Tofler. The company is yet to file its financials for FY19.
While the agency witnessed a peak in their revenue from operations in 2015 at Rs 407.1 crore, it declined during the year ended December 2016 to Rs 376.5 crore and then Rs 340.1 crore in 2017. Back then, the agency had maintained that the economic and policy-related challenges in 2017 had left an impact on their clients and hence their spending on advertising and communications had been effected. In 2018, the operational revenue figure stood at Rs 331.1 crore
In response to exchange4media’s query on the same, Kunal Jeswani, CEO, Ogilvy India, said that while the numbers are an indication of the dip in the offshore revenue of the agency, the India business for the agency is still growing. “Ogilvy India had built a significant offshore business over the last decade. The last few years have seen many global economies struggle and our offshore revenue has declined sharply. The reported numbers reflect the loss of that dollar revenue. Our local India business, however, is thriving and growing year on year. 2018 and 2019 have both been very good years for Ogilvy's India business,” contended Jeswani.
The agency recently lost fast food giant Pizza Hut’s account to independent agency Creativeland Asia. The account size is estimated at Rs 15 to 20 crore. Ogilvy & Mather India was the incumbent agency on the account since 2013. However, earlier this year, the agency bagged the creative duties for ICC World Cup 2019. The size of the account is estimated to be in the range of Rs 25 crore to Rs 30 crore. The company has also won shampoo brand Clinic Plus, an account pegged to be around Rs 5 crore.
Recently, the agency dragged smartphone maker Vivo and creative agency Dentsu Impact to court over allegations of plagiarism.
With the economy grappling with the much talked-about slowdown, it will be interesting to see if Ogilvy & Mather India manages to sail smoothly through these times.
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