US advertising agency Wieden+Kennedy (W+K) recently announced it was winding down its India operations as part of a global reassessment of priorities. “We’re not ruling out the possibility of ramping up again in the future,” the agency said in a statement, hinting it hadn’t closed all doors.
Around this time last year, WPP dropped the curtains on J. Walter Thompson and merged the legacy agency with sibling creative shop VMLY&R to form a new entity called VML. With the formation of VML, another storied brand name, Young & Rubicam, also retired.
Then, earlier this year, WPP merged AKQA and Grey in five markets as part of an efficiency drive, though the latter retains its standalone identity in India. “But for how long,” asks an insider.
If that seems a bit disconcerting, a clutch of homegrown agencies including RK Swamy, Bright Outdoor Media and Crayons Advertising decided to go public to raise capital for business expansion. Mind you, India has more than 40,000 advertising agencies but only a handful have sought public funds.
In other words, being a global brand is no longer a big deal, says Prabhakar Mundkur, advisory director Miami Ad School, who had put than a decade in then-JWT-now-VML. “The small agency with no global affiliation is rising,” he adds.
One reason for that could be that today, marketers want their agencies to be an “ally” and act as an extension of their in-house team, filling them in with industry knowledge and quicker execution. “Clients are looking at very short term campaigns. This means agencies have to be very agile to get the brief, generate ideas and execute,” says Ambi Parameswaran, founder, Brand-Building.com. “There is also the issue of how much to put in performance marketing and how much in brand marketing (especially with smaller start up brands). There is also the need to rapidly train teams on how to use Gen AI tools.”
Could such pressures actually present an opportunity for smaller — therefore more nimble — independent shops to come back into reckoning?
Chandrasekhar Mantha, partner, media & entertainment leader, Deloitte, says we are in a decade of experimentation, where mid-sized and small brands are increasingly willing to collaborate with smaller ad agencies. These agencies have built a reputation for their specialized skill sets, resources, and innovative ideas. With some standout campaigns under their belt, they are able to compete with larger firms. Additionally, they offer brands a more personalised experience and dedicated attention, giving them a distinct advantage.
One thing is clear: Small independent agencies are proving that success isn’t tied to a well-known brand but to the strength of ideas and flawless execution. Excellence, technology, and quick turnaround are driving their growth. “Clients today seek agility and the ability to stay on par with the curve—qualities that smaller, more adaptable teams deliver effortlessly. It’s about assembling talented people, not relying on the clout of established agencies,” says Avishek Mukherjee, creative director, BC Web Wise.
Having said that, new agencies starting up is nothing new but what is new is the pace at which they are starting up and their sheer numbers, say veteran advertising hands. “Thanks to digital all you need is a guy and a laptop and a local coffee shop,” says Hemant Misra, founder & managing director, MagicCircle Communications. “All this guy is doing is sending out mailers from the coffee shop about the coffee shop. He might not understand the brand but he understands the medium and how to exploit it.”
To that extent, the trend is short term and sooner or later the client will evolve and so will the data capabilities of big agencies. And as the use of artificial intelligence in advertising takes root, efficiency and differentiation will be key to survival, say observers.