McCann setting up second agency
McCann Erickson India, part of the Interpublic Group, is in the process of setting up a second agency in India.
By Sonali Krishna, TNN |
MUMBAI: McCann Erickson India, part of the Interpublic Group, is in the process of setting up a second agency in India. While the blueprint is being set in place, the agency is expected to launch by end 2008.
McCann Erickson sources explained that the move was aimed at providing a option for small and mid-sized clients, who might not be a natural fit with the mother agency.
“It is not that it has not crossed our minds, but there is no immediate plan,” McCann Erickson chairman & regional creative director (Asia Pacific) Prasoon Joshi said. However, senior officials in McCann told ET, that the agency was looking at a more localised second agency, to ensure comfort levels with smaller clients. The second agency when rolled out will, however, be a 100% subsidiary of IPG.
Senior officials also pointed out that the management was, currently, grappling with the financial issues a second
agency could pose. One being, the rising real estate costs couples with the fact that advertising margins were only getting thinner. “A second agency, however, is a must, to grow the portfolio of clients and categories that an agency handles.
While small and mid-sized clients if looked at in isolation may not look as such a significant revenue churner, in due time the volume of clients account for a significant chunk,” said the source. He further added that while a mid-sized client is not a big spender today, it might emerge into a big spender in the future.
O&M’s erstwhile second agency, David, was recently merged with Bates Enterprise.
McCann Erickson sources explained that the move was aimed at providing a option for small and mid-sized clients, who might not be a natural fit with the mother agency.
“It is not that it has not crossed our minds, but there is no immediate plan,” McCann Erickson chairman & regional creative director (Asia Pacific) Prasoon Joshi said. However, senior officials in McCann told ET, that the agency was looking at a more localised second agency, to ensure comfort levels with smaller clients. The second agency when rolled out will, however, be a 100% subsidiary of IPG.
Senior officials also pointed out that the management was, currently, grappling with the financial issues a second
agency could pose. One being, the rising real estate costs couples with the fact that advertising margins were only getting thinner. “A second agency, however, is a must, to grow the portfolio of clients and categories that an agency handles.
While small and mid-sized clients if looked at in isolation may not look as such a significant revenue churner, in due time the volume of clients account for a significant chunk,” said the source. He further added that while a mid-sized client is not a big spender today, it might emerge into a big spender in the future.
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Interestingly, McCann Erickson is one of the last movers in terms of setting up a second agency in India. The most successful such spin-off was the JWT (then HTA) launch of Contract Advertising, which is now considered a major agency in its own right. Another ‘subsidiary’ agency of JWT is Fortune while FCB Ulka has a subsidiary called Interface. O&M’s erstwhile second agency, David, was recently merged with Bates Enterprise.
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