As the chief executive officer of Trikaya Grey, Nirvik Singh has his eyes open to the emerging opportunities in the Indian advertising industry. Excerpts from an insightful interview with Mukta Malhotra of FE-Thinktank:How will Internet advertising grow in India?
Advertisers are not exploiting this medium right now. Banners are not interactive. However, there will be growth in online advertising in India. In another three to four years, the Indian advertising industry is expected to clock in Rs 15,000 crore. Of this, online advertising is expected to account for as much as Rs 300 crore.
What will be the role of media planners in the changing scenario?
During the Nineties, media planners had to change their skill-sets when cable television picked up. Today, it is a similar situation. Now, media planners need to acquire different set of skills and figure out the optimum way of getting clients.
Will advertising on WAP devices and ATMs pick up in India?
By advertising on WAP devices and ATMs, advertisers can speak to their consumers on an one-to-one basis. This will help advertisers in micro-segmenting their target audience. Such advertising should soon catch on.
How are the needs of advertising clients changing?
Today, clients want integrated communication solutions including direct marketing, event management and public relations. Two or three years down the line, advertising agencies will have to understand the emerging technologies and should become communication companies.
Will there be consolidation in the Indian advertising industry?
Yes. From an advertising agency point of view, such consolidation should usher in economies of scale and cost efficiency. Consolidation will also include acquisitions of communication networks and media companies by advertising agencies in a bid to gain media clout and to be able to offer their clients competitive rates.
What is the real challenge before the Indian advertising industry today?
The real challenge is in transforming pure advertising practitioners into communication practitioners. We need to scale up our communication companies quickly and look at acquiring specialist organisations.
How do Indian advertising agencies compare with their global counterparts?
We are benchmarks for Asia. Europe and USA are ahead in technology. We need to catch up with them in specialist communication areas.
Where do you see growth in the Indian advertising industry coming from?
The Indian advertising industry will grow rapidly during the next five years. More advertising categories will open up. Dot-coms, entertainment and healthcare segments should become larger and offer growth opportunities for the industry. The industry needs to exploit specialist communication areas also for growth.