The Anchor: 4 reasons why digital media’s mergers and acquisitions are a good sign

12 Sep,2012

By Rammohan Sundaram

 

#1 It is a sign that the market has matured:

It shows that India as a market has matured. All these agencies which have been acquired are at least 10 years old and these are the people who have done all the hard work – whether it is Communicate2 which was acquired by Aegis Media or Hungama Digital acquired by JWT, etc. It’s a natural progression and these are things which happen when businesses are scaling up.

 

#2 Large agencies bring large clients:

When large agencies acquire a standalone agency, it comes with large clients and as a result, it helps the standalone agency maintain continuity in the business, especially for clients attached to the agency that they have been associated with over the last several years.

 

#3 Standalone agencies are allowed to retain vision:

It is important for continuity in the business, and there is no reason why the standalone agency needs to change post-acquisition. While operational and financial processes will inevitably change, how you run your business usually doesn’t. This is so that there is a continuity of the vision that first started the standalone agency and has ensured the continuation of its growth.

 

#4 Brings more talent to the agency:

The companies which are successful today are those that have got tremendous talent. In order to build talent, loyalty and attrition rates which are lower than any other competitor is the key to success for an advertising agency in the business today. This is what most of these agencies have managed to do and that’s the differentiator.

 

Rammohan Sundaram is CEO and MD, NetworkPlay Media Pvt. Ltd

 

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