We need to overcome the challenge of AdEx slowdown: Vikram Sakhuja

Vikram Sakhuja, Group CEO of Madison Media and OOH, recently joined the prestigious league of advertising stalwarts by receiving the AAAI Lifetime Achievement Award.

Reflecting on the honour, Sakhuja said in an interview with Impact Magazine editor Neeta Nair: “I was pretty blown. It’s obviously humbling because when you go through the list of 31 previous winners, it’s an absolutely awesome group to be part of. So, to be in that pantheon is very humbling.”

Sakhuja shared his concerns about adex slowdown and called for proactive solutions to revive ad spending.

The latter half of 2024 saw a significant dip in ad spending across industries. “It’s a bit inexplicable because macros seem good, but some micros are not working well. Clients are cutting down on spending across the board,” Sakhuja noted.

He stressed that this slowdown impacts the core purpose of marketing—creating demand. “If demand is a problem, that’s a challenge agencies like us must seize and solve. Marketing, after all, is a demand creation job,” he added.

Amid this slowdown, Connected TV has emerged as a bright spot for media agencies, offering new opportunities for targeted advertising. However, Sakhuja pointed out that the tools to measure connected TV audiences are still underdeveloped.

“Right now, about 15-20% of all TV hardware is connected, and that number is growing fast. But the ability to measure audiences and ratings is entirely different from traditional systems like BARC. The current solutions provided by big tech companies are very suboptimal,” he said.

The rise of connected TV could help advertisers find more precise ways to engage their audiences, but this requires investments in robust measurement systems to ensure transparency and reliability.

Another challenge lies in the governance of digital media, which now commands a substantial share of ad budgets. Sakhuja expressed concerns over the lack of third-party accountability in digital advertising.

“I have a governance issue when media owners control everything—viewership data, billing, and revenues—without any third-party checks. Even the most respected broadcasters subjected themselves to external monitoring in the past. That accountability is missing now,” he said.

He warned that this lack of oversight could have severe repercussions. “If this system implodes, it could lead to a meltdown similar to the financial crisis of 2008. Digital is already too big to fail, and the damage could be massive,” he cautioned.

To combat the decline in ad spends and ensure sustainable growth, Sakhuja emphasized the importance of transparency and innovation. “We need to use techniques to measure viewability, in-market audiences, and tackle ad fraud. Without these, the ecosystem remains vulnerable,” he stated.

The decline in ad spending is a wake-up call for the industry. As Vikram Sakhuja suggests, agencies must rise to the occasion, focusing on creating demand, adopting robust measurement tools, and ensuring accountability to navigate this complex landscape.

He also raised concerns about accountability in digital media. "Media owners are now the judge, jury, and executioner when it comes to measuring their performance. If this lack of third-party validation continues, the risk of a media meltdown akin to the 2008 financial crisis looms large," he warned.

While challenges abound, Sakhuja remains optimistic about the possibilities ahead. The rise of digital, particularly Connected TV, presents a chance to redefine audience engagement. "This is a transformative era. Agencies need to focus on leveraging technology to solve problems like demand creation and audience measurement," he suggested.

Disagreeing with the notions of extreme work hours, such as 70-hour weeks, Sakhuja stressed the importance of sustained effort and long-term commitment. “It’s not just about quick wins; it’s about moving from here to there and finishing strong.”

Sakhuja also appreciated the younger generation's knack for working smarter rather than harder, acknowledging their efficiency is in achieving results with fewer hours.

However, he feels their drive to persevere and see things through is lacking. “The ambition, drive, and dedication to stay the course—what we called the edge—seems missing. It’s about playing the Test match, not just T20,” he said.

An advertising industry stalwart for over four decades, Sakhuja’s journey has been anything but ordinary. From graduating from IIT Delhi and IIM Calcutta to managing some of the biggest names in the business, his career epitomizes persistence and passion. Speaking about his initial foray into marketing, he revealed, “By the third year at IIT, it was clear to me that engineering wasn’t my calling. I loved humanities courses and, by the time I joined IIM, I was laser-focused on pursuing a career in marketing.”

Reflecting on career stability, Vikram Sakhuja said he firmly believed success comes with perseverance and commitment. “If you want to do well, you must stick it out. A rolling stone gathers no moss.”

With stints spanning eight years at P&G, five years at Coca-Cola, 14 years at WPP, and nine years (and counting) at Madison, Sakhuja believes longevity provides deeper insights and greater rewards. “You should have a bigger reason to leave an organisation than just joining a new one,” he emphasised.

When asked about the allure of advertising, Sakhuja’s response was clear and passionate: “Marketing is about getting more consumers to buy more of your brands more often at a higher price. It’s a demand-creation job that involves understanding what motivates people to act the way they do. That obsession with finding answers keeps the spark alive.”

The AAAI Lifetime Achievement Award also celebrates Sakhuja’s significant contributions to both agency and client-side roles. “The growth trajectory in client organizations often transitions to general management. But in agency life, marketing is at the core of everything. That’s why I find it more fulfilling,” he said.

Despite receiving one of the highest honours in the industry, Sakhuja’s humility remains intact. “Even I thought I was just getting started. It’s humbling to be recognized, and somewhere, I must have done something right to get it.”

An advocate of clarity in career goals, Sakhuja credited an early exercise during his time at Procter & Gamble for shaping his vision. “They asked us to write a career epitaph. I privately thought, if I could be remembered as someone who made a difference in marketing in India, that would be nice. It’s stayed with me ever since,” he shared.

As someone who has worked in multiple facets of the advertising world, Sakhuja continues to be driven by the passion to understand consumer behaviour and create impactful campaigns. His relentless curiosity and unwavering commitment have not only shaped his career but also left an indelible mark on the Indian advertising industry.

If he were to start afresh, Sakhuja admitted he would still choose media over other specialisations. "Media is in my DNA. It’s an exciting time with content, creative, and digital merging into one big ecosystem," he remarked.

As the industry heads into 2025, agencies will need to prioritize accountability, invest in cutting-edge tools, and adapt to the evolving needs of both clients and consumers, Sakhuja signed off.