Ad majors chalk out fresh growth plans

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Mumbai, Jan 16: In a bid to meet the growing demands of clients, major ad agencies are now on an expansion spree. For starters, ad major Madison World has recruited 35 managers to add muscle to its manpower while Leo Burnett India is consolidating its verticals (retail & mobile communications) under` Leo Arc'. Competitor, JWT India is looking at new revenue streams in the entire communication spectrum, while Contract Advertising is looking for acquisitions to enter new communication domains. Yet another ad major Rediffusion DYR is looking at adding on higher competence in retail and digital communications in 2008. Clearly, it’s survival of the fittest in the Rs 16,300 crore Indian ad industry.

On Madison’s growth strategy, Sam Balsara, chairman of the Madison Group said:” We are consolidating our position in several new areas such as retail, mobile and digital communications. We have just added on 35 managers at the grass root level at Madison.” At present, Madison has 15 units to cater to the varied needs of its clients. Across the road, Leo Burnett is strengthening its `marketing services’ unit to gain a competitive edge in the industry.” Our objective is to register a 30 % growth this year. We are sharpening our focus on retail and digital communications in 2008,” said Arvind Sharma, managing director and chairman of Leo Burnett India.

Just what’s fuelling this enthusiasm for growth? According to Jagdip Bakshi, chief executive officer of Contract Advertising, the Indian ad industry is expected to grow at 20% this year. “To retain their individual growths, ad agencies will try to push their revenues in 2008.We will sharpen our focus on our core strength `integrated marketing offer’ to stay ahead of competition,” he added.