PK, let’s begin with GroupM’s contribution to WPP’s overall revenue in India. How well would you say you are doing?
Without getting into the numbers, we continue to be a stronger contributor to WPP. We also have a responsibility in this context. We have always explored growth areas, and a significant amount of learning has happened through the years. While we may be good in a few aspects, we are in a position where we integrate well with other WPP companies. We are not just seeing linear growth but diversified growth, which is very important to us. So, I would say we are in a very good position.
In the last few years, GroupM, much like WPP, has undergone a streamlining process. Where have the chips fallen, as you see now, among your re-imagined media agency brands?
GroupM is home to the top three media agency brands in India -- Mindshare, Wavemaker and EssenceMediaCom. mSix&Partners and Motivator have their niches, and they are doing very well in that. The agencies compete with each other on various parameters and it is a great place to be in because the closer you observe, the clearer you see the distinction between them.
It is not just about the client portfolio and the mix or the approach to customisation and work, but it is a cultural difference. All GroupM agencies have the hunger to improve themselves and each has grown. The way they are built also allows more flexibility for our clients. This strategy will continue without losing focus on clients and businesses. We have a very good cadre of work, which I see as a good sign.
In fact, many large marketers have come up with some very interesting solutions as well. How are you seeing marketing evolve as a function in these tech-first times?
Marketers have unprecedented opportunities today. They are focusing on value versus volume, finding new consumer cohorts and creating strategies for multiple market penetration in different forms. Marketing is playing a much larger role in the ability to find new growth sources within a business. Whether it is finding new consumers, customer retention, creating sub-categories, identifying white spaces or developing consumer habits, there is a wider scope to do more. Tech is playing a role but we are also seeing other areas open up. For example, events. Events have picked up in a big way in India. We are seeing global formats coming into play. Sports have opened up beyond cricket, and the Olympics is coming up, fuelling more opportunities for fresh marketing solutions.
GroupM This Year Next Year report had some positive forecasts, though the numbers are not as aggressive as they were in 2021-22.
We saw very good growth in 2021 and early 2022 in comparison to the preceding years. Part of the reason for that was startups and the tech sector had picked up. Conventional companies too were doing well. Today, the market is adapting to newer challenges, but there are many gains as well.
Digital, for example, has become a much larger world with commerce, influencer marketing, video and content developing in a big way. The supply and format grew, and so did the demand.
There has been a recovery in TV, print and other media too. TV is growing at a higher percentage than last year. The momentum in each medium has continued especially with Connected TV, Digital OOH, online radio solutions and the like kicking in.
By the second half of 2022, we had begun to see startups and tech sectors feel the pressure. At present, while the challenges continue, the growth source comes from some conventional startups due to the rise in commerce, influencer marketing and the like. Small and medium-sized businesses & enterprises (SMBs/SMEs) have picked up.
We saw 11.3 per cent growth in 2023 and we are seeing a 10.2 per cent growth in 2024, which is a realistic scenario. But these are very exciting times. I have not seen this kind of energy ever. There is much to imagine and so many opportunities to find radical solutions. Modern marketing has never witnessed this kind of multi-tiered, multi-faceted growth story.
On another note, we have not seen GroupM do much in acquisitions of late. Any plans for this year?
Acquisitions cannot be done for acquisition’s sake. We have to critically look at how it can add value to what we do, what we bring to our clients, and also how we add value to the acquired company. I am sure you will hear more about that when the time is right.
What are some areas of focus for you in the year ahead?
We intend to grow our diversified services with data, commerce, influencer and content. Our focus on clients will remain paramount. We want to do fantastic work, getting more value for our existing clients. And we want to keep the thrust on winning new businesses as well. We will focus on the SMBs/SMEs space as well.
Leaders need to do more in the market. To stitch all of this, it is important to grow our people. We are upgrading their skills, adding new skills and finding diverse skill sets with a wider source of talent pool.
As tech enhances and we adapt to AI, our tools become better. When that happens, it is inherent in our nature to do more with that and improve further. AI is an important space, where we are testing and learning continuously. We are in a very exciting phase, where 24 hours is simply not enough.
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