Talent drain: Why is the ad industry losing its CEOs and top guns? – Pt 2
In Part 1 yesterday, we discussed the reasons why some advertising veterans are moving out of the industry to other professions. Today we take a look at the increasingly uncomfortable agency-client relationship and a skewed business model. And the solutions they suggest to overcome these issues.
Is the scenario as bleak or uninspiring as CVL Srinivas who has quit the agency business makes it sound? He goes to the extent of saying, “When I decided to quit, I never felt any fear for my future. On the contrary, I feared for the people I was leaving behind.”
If that’s the case, there must be some way to combat these issues that we discussed yesterday -- be it compensation or lack of challenge for those who have been in an agency setup for a long period.
Skewed business model:
According to Srinivas, the media agency business has certain peculiarities, especially the fact that “the amount of effort required and the investment put in is not commensurate with the revenues one derives from the client”.
He elaborates, “I think that the business model is faulty. The clients look at agencies as mere vendors. Most clients are not mature enough to see the big picture. For this the media agencies themselves have to be blamed. The remuneration that clients pay is not usually in line with the agency’s requirement and this needs to change. It is the onus of the agency to add value to the client and it’s the onus of the client to make full use of the skills and talent of an agency and not depend on it merely to release advertisements.”
He added, “Media agencies need to adapt faster to the technological changes happening around which would help the business. These are signs of things to come where the media agencies have to reinvent themselves. Having said that, what I want to reiterate is that there is nothing wrong with the advertising profession but the issue is with the business model.”
Santosh Sood, a veteran of the advertising business who quit Rediffusion DY&R late last year as Chief Strategy Officer, too feels that things would turn for the better if the agency structure of agency is re-looked. He said, “I believe that the agency setup can be structured differently to bring more value to people in the industry as well as the clients. The agency business as it is today is stressful where different people have different agendas, which adds to the stress. Also, agencies need to come out of the time wrap and stop playing by the FMCG rule, which is not a relevant model now. ”
Sood added, “While one does not profess excessive creative regimentation but the agencies also need to look at process driven creative which would work for the brand. A sudden brainwave in terms of ideas might not work every time.”
Reality check:
Ajay Ahluwalia offers his suggestions from a creative’s point of view. He said, “We're too divorced from reality and too caught up doing nice lines and cute stuff that sometimes click, and sometimes don't. There is a need for interaction with the world outside which is not adequate now. This will help in what we write or design and will really tickle the guys outside.”
He also added, “Account management by and large has reduced itself to being on the fringes: just driving the revenues or rushing to bow to the client as fast as they can, the minute the client cracks the money whip. The instances of where an agency has a point of view that's actually meaningful and not just whim and is willing to stick to it, is becoming rarer.”
In a candid moment he said, “And you have a bunch of people on the client side who should actually not be involved with advertising and make matters worse.”
Training:
Debraj Tripathy, CEO of Sieger Solutions, the ad sales arm of Deccan Chronicle, gives his take on how to deal with exodus. He said, “Training is important for upgrading one’s skills and this has to be at three levels: improving job skill, career skill and life skill. While to some extent we do focus on addressing issues of career and job skill, the issue of life skill has never been addressed which is important in retaining people.”
He added, “There is a need to come up with platforms where the industry as one unit can address issues of compensation, attracting talent and retaining them.”
So is advertising just for the young?
Srinivas is categorical that youngsters have identified the issues bedeviling the agency setup and are no longer attracted to the industry. “The testimony to this is the talent crunch that the industry is facing today.”
Though Ahluwalia does not agree. “Not at all. People like Piyush Pandey, Prasoon Joshi, Freddy Birdy, Balki are anything but young, and they're the guys who're running the creative business. Age is incidental to how well you do in advertising. The freshness of your ideas and the youthfulness of your mind have everything to do with it. Youth has energy and, of course, fresh perspectives. If you're creative and like being creative; if you keep thinking fresh and be innovative, the ideas won't dry up. And as long as they don't, you're what advertising needs and wants.”
In complete contrast, Sood gives an interesting take on senior people quitting advertising. He said, “This also shows that the advertising people are much in demand, hence the move is happening outside the industry. There are a lot of new industries that require in-house branding and communication expertise and for them an advertising professional is the best bet.”
So, is it that the while the ad industry is yet to figure out how to reinvent itself, there are smart clients who are ready to pick up the seasoned talents? The jury is out, though the portends are not too encouraging for the agency business.
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TOP STORIES
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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ShareSwapan 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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