Ad agencies retain talent with opportunities, sops
Ad Agencies were once the darling of B-schools graduates. But the scenario is changed today. Now, FMCG companies, financial services and MNCs are offering stratospheric salaries, which the agencies are finding difficult to match. Agencies have to look at second-rung and lower B-schools; for instance, Chetana, MET and Somaiya in Mumbai.

Ad Agencies were once the darling of B-schools graduates. But the scenario is changed today. Now, FMCG companies, financial services and MNCs are offering stratospheric salaries, which the agencies are finding difficult to match. Agencies have to look at second-rung and lower B-schools; for instance, Chetana, MET and Somaiya in Mumbai.
And quite a few advertising professionals admit that scraping the bottom of the barrel won't get them the right people. Agencies offer anything between Rs 3.5-4.5 lakh per annum to management trainees, which pales in comparison to salaries offered by financial services companies.
Other communication institutes like Northpoint, set up by Lintas, and AICAR, do have takers in the industry, but have to go a long way to establish themselves. It's no secret that the advertising industry just can't attract top-notch B-school graduates anymore, and they certainly need them.
Says Kalpana Rao, talent director, Ogilvy & Mather, “Agencies do need MBAs, as they're the kind of people who can work with and understand clients.” According to Anand Halve, co-founder, Chlorophyll, “There are a few high-paying sectors that have emerged, but it was the decline of margins in the old commission-driven model which led to a widening in the salary difference.”
While advertising has emerged out of the trough in the early 2000s, the business model still remains essentially unchanged, relying more on commission than on retainerships. Margins today are well below 15%, a figure that held for most of the 90s, and while they've been steadily climbing in the last couple of years, margins are unlikely to reach those heights anytime soon.
Says Mr Kamath, “Unless their business and remuneration models change, agencies can't afford to match salaries offered to the top B-school graduates.” Mr Kamath suggests that clients should move towards remuneration for creating brands and preferences rather than just for services.
Even as margins got squeezed in the late 90s, agencies cut back costs on training rather than re-look at the business altogether. This led to another problem that agencies didn't reckon with - discontent at the mid-level. Agencies began losing people in services and planning to their clients, a trend that shows no signs of stopping even now.
The Anil Dhirubhai Ambani Group alone has hired four top-level professionals from the advertising industry, including Ajay Kakar who quit as CEO, Ogilvy PR and Sandip Tarkas, then-CEO, media direction, RK Swamy-BBDO's media unit. Most agencies are now trying to turn this threat into opportunity, by giving greater responsibility to the young people joining the industry in client servicing and planning.
There is also some movement at the agency-level. Mudra, for instance, has drawn up a program to identify the top 25% of its employees and chart specific career plans for these individuals, and also working in tandem with MICA for fresh graduates.
Says Preet Bedi, President, Rediffusion DY&R, “We've put in place a flat structure, and our planners can work on a wide rage of clients or have the option to specialise.” Adds Colvyn Harris, CEO, JWT, “We ensure that everyone in the agency gets at least four days of training in a year, and our best performers get mentorships abroad.”
However, at an industry-level, there's very little collaborative effort to get the best people into an industry which once ruled the roost at B-schools.
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E4M Our strategy is to target younger audiences through Sports: Rajiv Dubey, Dabur
The Head of Media at Dabur India spoke exclusively to exchange4media on the World Cup, associating with Indian Idol, the company’s digital spending and much more
With quirky campaigns, memes and moment marketing, timed with the ongoing World Cup and particularly the India-Pakistan matches, Dabur India has got considerable consumer attention for its popular brands – Red Paste, Cool King Hair Oil, Chyawanprash, Dabur Vita and the recently launched Bae Fresh Gel toothpaste.
The 140-year-old company is going big on key sporting events, World Television Premiere (WTP) movies and reality shows. It is now gearing up to become the title sponsor of popular talent show ‘Indian Idol’ on Sony TV for the first time, shared Rajiv Dubey, who leads the media strategy at Dabur.
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Swapan Seth's new book 'COOL' is out
The book is a reflection of the author's 'eclectic taste across categories'
Advertising professional and art collector Swapan Seth has announced the launch of his new book COOL. The book is described as "a ready reckoner to the hip and the happening, of the known and the very unknown."
The book is a reflection of the author's "eclectic taste across categories: from boltholes to exotic hideaways."
COOL has been published by Simon & Schuster India and is available on Amazon.
Seth is an ad veteran with a long and illustrious career in the industry. He became the youngest-ever Creative Director at Clarion at age 24. He was VP at 26 at Trikaya Grey. Two years later, he started his agency Equus.
He writes for publications such as The Economic Times, Hindustan Times and India Today. This is his second book and he has previously published THIS IS ALL I HAVE TO SAY.
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Disney Star signs 9 sponsors for Asia Cup PAK
Charged by Thums Up, Nerolac Paint+, Amazon Pay, Jindal Panther, My11Circle, MRF, Samsung Galaxy Z Flip5, Wild Stone and Thums Up come on board
e4m Staff Disney Star has signed nine broadcast and digital streaming sponsors for the upcoming Asia Cup.
Charged by Thums Up, Nerolac Paint+, Amazon Pay, Jindal Panther, My11Circle, MRF, Samsung Galaxy Z Flip5, Wild Stone and Thums Up have come on board for the upcoming tournament.
As reported earlier by exchange4media, Disney Star has sought Rs 26 crore for the co-presenting sponsorship on TV and Rs 30 crore for Disney+ Hotstar.
According to industry sources, the associate sponsorship on Star Sports has been priced at Rs 19.66 crore, whereas for the ‘powered by’ sponsorship on Disney+ Hotstar, the broadcaster is seeking Rs 18 crore.
As per the information available with exchange4media, Disney+ Hotstar has three sponsorship tiers-- co-presenting (Rs 30 crore), powered by (Rs 18 crore) and associate sponsorship (Rs 12 crore). The broadcaster is offering an estimated reach of 120-140 million for co-presenting sponsors, 90-100 million for powered by and 60-70 million for associate sponsorship.
A spot buy for 10 seconds has been priced at Rs 25 lakh for the India vs Pakistan matches, while for the non-India matches, the ad rate for 10 second is Rs 2.3 lakh. The India matches plus the final for ODIs has been priced at Rs 17 lakh per 10 seconds.
Asia Cup is scheduled to be held from 30 August, 2023, to September 17, 2023.
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Sorted 360 wins creative & social media mandate of Reliance Mall
The agency will manage offline and online campaigns for Reliance Mall
Sorted 360, an integrated creative and social media agency, has won the mandate to providing brand solutions for Reliance Malls across India.
“Sorted 360 is set to enhance Reliance Malls' market presence with their unparalleled creative prowess and strategic thinking,” read a press release.
“Sorted 360's commitment to pushing the boundaries of creative communication aligns perfectly with Reliance Malls' ethos. With a pan-India presence spanning across 19 cities and growing, Reliance Malls has consistently captivated customers by offering an array of Reliance brands and third-party fashion & lifestyle brands. The mall has established an unparalleled connection with its patrons through superior quality, a remarkable value proposition, and an unmatched shopping experience,” it read further.
"We are thrilled to welcome Sorted 360 as our trusted partner in advancing our brand presence across the nation," said the Head of Marketing at Relaice Malls. "Their proven expertise in retail, shopping center management, and innovative creative strategies make them the perfect fit for our vision."
"Partnering with Reliance Malls is a testament to our commitment to shaping extraordinary brand experiences," remarked Prerana Anatharam, Co-founder of Sorted 360. "We are excited to leverage our strategic and creative acumen to further elevate Reliance Malls as the epitome of convenience, choice, and excellence."
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KlugKlug onboards Hemang Mehta as Country Manager for Indias
Mehta was most recently Head of Agency Relationships at Network 18 Media & Investments
KlugKlug has appointed Hemang Mehta as its Country Manager for India.
Mehta will play a pivotal role in driving KlugKlug's growth and expansion within the Indian market and be responsible for Sales & GTM Strategy
Prior to that, he has also represented organisations like Exponential (now VDX.tv), India Today Digital and Rediff.com. His expertise spans various domains including digital media sales, mobile marketing, media planning, and buying, social media marketing, and more.
Hemang Mehta expressed his enthusiasm about joining KlugKlug, saying, "I am thrilled to be a part of KlugKlug, a forward-thinking platform that is reshaping the influencer marketing landscape. As much as I look forward to collaborating with the exuberant team at KlugKlug, I am super excited to interact with the brands to deliver powerful data-backed Influencer solutions that will guarantee business outcomes."
Commenting on the appointment, Kalyan Kumar, Co-Founder and CEO of KlugKlug, stated, "We are excited to welcome Hemang Mehta to our team as the Country Manager for India. His extensive experience in digital media sales and marketing will be instrumental in driving our efforts to provide influencer marketing solutions to our clients. We believe Hemang's leadership will be key in scaling our operations and expanding our reach within the Indian market."
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