Fiscal 2013-14 may have ended with some optimism given the forthcoming elections, but was the year good for the advertising and marketing services sector? And how would the new fiscal be? We spoke to a few players to get their views about the same.
Ashish Bhasin, chairman India & CEO South East Asia, Aegis Group plc:
Last year was a brilliant year for us, because it was the first year that we managed to bring Dentsu and Aegis together to form the DAN Network. We saw a lot of growth in digital, out-of-home, retail and so on. We were happy that our growth rate was two-and-a-half times more than the market growth rate and we managed to gain a lot of market share, etc. We are looking forward to more growth as we've gathered momentum on the basis of the growth that we had in the past few months. As a model, we have one P&L across the country so nobody is driving to sell just TV or print to the client. We do whatever is required for the brand as nobody has an agenda.
Nagesh Alai, chairman, Draftfcb Group India
Considering that India's GDP growth for 2013-14 is expected to be sub-5%, the advertising industry's growth would be in the range of 5% to 6% at best. FCB Ulka Group's growth would be about 6-7%. Overall, it has been a challenging year for the industry. Given the general elections and a sort of policy and execution vacuum till the new government gets in place, my view is 2014-15 is going to be no different than the previous year. There is an air of exuberance and over expectation, which may not materialise in the current year. Q4 of 2014-15 may show some pick-up trends.
Alok Jalan, managing director, Laqshya Media Group
"It was generally a mixed year. While the year started on a good note and the first quarter was very good, things slowed down in the next two quarters and then bounced back again in the last quarter. Overall the industry growth was about 8-10%. For Laqshya Media Group, revenue-wise it was a mixed year where some verticals and markets showed very high growth while some fared below expectations. That aside, we have looked at new areas to expand our footprint in terms of media ownership. I feel 2014-15 will be a turnaround year for advertising and marketing industry. I believe that we will see early signs of revival from the first quarter itself and second half of the year is likely to be substantially better. Also, industries like BFSI, auto and real estate, which were less active in the current financial year, will become more active.
Roshan Abbas, managing director, Encompass Events
2013 has been a good year for us. We focused on new business development and got on board brands as diverse as Datsun, Fortis, GVK, Eicher, Samsung, etc. Encompass has remained a leader in the business. I asked about 20 agency members of the Event and Entertainment Management Association (EEMA) and most have said the year saw a lot more competition and no growth. Those who focused on internal cost management or capability building have improved margins while the ones who have invested in IPs over the long term are hoping for a profitable return soon. There were multiple new arena-based events and detonation festivals from EDM to Wellness, etc. but the jury is out on spend versus return.
Sabyasachi Mitter, managing director, Interface Business Solutions (I) Pvt. Ltd
"I think overall 2013-14 was a tough year for the industry. The rising dollar, political paralysis and an overall depressed sentiment led to a lot of cautious approach by marketers. A lot of independent digital agencies got acquired in the last financial year continuing the trend of consolidation. On an average my estimation of growth for the digital industry would be in the range of 20%. For IBS, the last year has been good with a turnover growing 90% year on year. The initial trends point towards a great year ahead. The dollar has dropped below the psychological Rs 60 mark. There is a belief that if the elections result in a decisive and stable government at the Centre, overall economic outlook would be extremely positive. On the back of last two years of caution, there could be a 30-40% growth in the digital industry. We at IBS are also extremely bullish about 2014-15.
Neeraj Roy, MD and CEO, Hungama Digital Media Entertainment Pvt Ltd
Fiscal 2014 has been one of the most challenging years for the VAS economy in India because of the implementation of the Telecom Regulatory Authority of India directiveFortunately for us, there are other areas where we focussed like the gaming industry & the international markets. I don't see the market turning in an extremely positive territory immediately in the coming financial year. I believe the first six months will be extremely crucial as the new government comes into power. It is important to know what will be their outlook towards the telecom economy as it needs a lot of policy driven direction. If that is done then I think it will set the pace for the growth phase in the next couple of years. I am cautiously optimistic about fiscal 2015.
Jaideep Shergill, CEO, Hanmer MSL
We follow a calendar year for global reporting so that's January to December, 2013. The year was good for us and we grew. In fact the first two months of 2014 have also started on a good note. In my assessment, the industry grew at about 10% overall.
—By arrangement with MxMIndia.com
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