‘Legacy is not the goal, building relevance is’
Omnicom’s acquisition of Interpublic Group (IPG) last year was one of the most significant events in the global advertising landscape in recent times. Aditya Kanthy, who was appointed president & MD of Omnicom Advertising India, talks to Christina Moniz about the restructuring of the company’s business and the edge it could offer in the fast-changing media ecosystem. Excerpts:
What are the growth ambitions of Omnicom Advertising post the IPG acquisition?
Historically, if you look at Omnicom over the years, the holding company has always acted as an enabler for its agencies. That is why we were able to build global networks that had stellar reputations in the industry. The same principles that guided the company in the 1990s are being applied now.
Our agency portfolio is strong, which offers us a host of ways to drive business growth. Post the IPG acquisition, we have more distinctive perspectives to offer our clients as well as a more meaningful path for talent.
Currently, our focus is on getting the organisation set up and on doing great work, which means ensuring that our clients grow. If they grow, we grow. Given our scale and our diversified portfolio, I expect Omnicom’s growth to mirror the Indian economy’s growth. At this juncture, it is too early to put a number to our growth ambition.
Legacy brands such as MullenLowe and FCB were retired during the recent restructuring process. Has that affected Omnicom’s footing in the industry in any way?
We’re fortunate that in the Indian context that we have Lintas, Mudra and Ulka in our portfolio as a sign of continuity for our clients and teams. You will in fact hear more about our BBDO group structure and our plans for Mudra and Ulka over the next 60 days. Having said that, we recognise that we cannot depend on our laurels and legacies.
You’re only as good as your last innings, as they often say. Legacy is not the goal, building relevance is. Regardless of the agency brands in question, this restructuring gives us an opportunity to gear up to drive better business outcomes for our clients. We have also strengthened our digital capabilities with 22feet Tribal and Kinnect.
What conversations are you having with clients who might have been unsettled by this huge transition?
We have tried to ensure that we retain as much of our client-facing talent as possible. The choices that you see in the leadership across the board in the Omnicom agencies signal our intent to have the best possible people working on our clients’ business. Most of our clients are also pragmatic about the need for agencies to make the right decisions to be future-ready. Many of them are taking similar steps themselves to stay ahead
in a fast-changing business environment.
Over the last 60 days, our leaders across Omnicom Advertising India are walking clients through this transition and allaying any concerns they may have. Most of our clients understand that these changes will only benefit them. The fact that many of our client relationships are at least a decade old also makes these conversations easier.
Omnicom has reportedly laid off over 4,000 employees worldwide post the acquisition. How has that impacted your employees in India?
The decisions we’ve taken in this regard are with the interests of the organisation in mind. It is more about strategy than the number of people. We now have around 3,000 people but we haven’t set a target number of people that need to be kept in or out of the organisation. Over the last 60 days, we have retained our high quality, client-facing talent.
Most of our efficiencies have been generated in support functions and non-client facing roles. Over the next few months, our focus will be on streamlining the operations and logistical aspects of our integration. In the quarters that follow, we will have the opportunity to re-examine the decisions we have made, which is natural for any holding company.
In a fast-changing media and advertising ecosystem, would you say larger network agencies like yours are at a disadvantage against independent advertising agencies?
There is always a place for good advertising agencies in the market. The work we do matters to our clients and helps them build profitable businesses. The form in which they do that may change, but the basic ability to build a brand, drive attention to it or to command a premium in a category is something that advertising agencies were designed to do. Omnicom has done that with quality and distinction for decades, and it is the core of the agency’s value proposition.
Being big is in fact an advantage because it allows you to invest more in new capabilities, attract good talent for long-term careers and offers global learning across markets and categories. Some brands in fact seek out agencies with a larger scale and depth to meet their growth ambitions. I will never apologise for our size and scale. It’s a source of strength for us. Ultimately, the focus should be less about size or scale, and more on building a good agency. Everything else will follow.