“Winning one more award will not make a difference. Over the past four years, our consistent wins have resonated with clients. As a result, we are getting called for more pitches and we are even getting businesses without the need for a formal pitch,” said Ajay Gupte, CEO of Wavemaker South Asia. Wavemaker was judged the Media Agency of the Year at the recently held Goafest 2024.
In conversations with exchange4media, Ajay Gupte shares being adjudged the Media Agency of the Year at Goafest 2024, their focus areas for the year, growth expectations and more.
Edited excerpts:
What does it take to be a winning agency?
We are consistently winning awards in every competition we enter. But these aren't overnight achievements; it's the culmination of purposeful and strategic investments made over many years. The DNA of Maxus, now Wavemaker, has always been characterized by innovation, award-winning performance and forward-thinking investments. Looking back to 2003-2004, we invested in a digital team at a time when digital advertising was still nascent. Similarly, we pioneered a content team when content marketing was not yet a client priority. Our commitment to innovation continued through investments in e-commerce in 2015-16 and in data and tech teams, including analytics and data scientists, in 2017-18. These investments span various fronts, including talent acquisition, training and technology.
We have hit a virtuous cycle. We have over 150 clients at any given time. Our investments have enabled us to offer products and solutions tailored to our clients' needs. They understand our vision and come on board, allowing us to continually learn and refine our strategies. Our success has allowed us to establish best practices that benefit a wide range of clients. Whether it's content creation, e-commerce strategies, performance optimization, or data management, our track record speaks for itself, evident in numerous case studies and awards. It is only because of the fact that we have invested, deployed, learnt and have created our own textbooks that is helping us tremendously. We reached a tipping point where it is all coming together for us. I believe this is the primary reason behind our consistent winning.
Does winning awards help in getting more clients?
Awards are a by-product of the work we're able to accomplish. We don't invest in e-commerce with the goal of winning an award; rather, we invest in it because it might be the right solution for a particular client, potentially leading to success. Then, the quality of our work is what earns us recognition and awards. When you consistently win, people notice. One award will not make a difference. Over the past four years, our consistent wins have resonated with clients. As a result, we are getting called for more pitches and we are even getting businesses without the need for a formal pitch. I believe this is the real proof of our success. Additionally, everyone wants to be part of a winning team and where the action is. This allows us to attract top talent more easily, reflected in our low attrition rates.
How has this year been for the agency in terms of business?
It's been truly fabulous. In 2023, we won a lot of business, totalling almost Rs 1700 crore. We are now experiencing the full-year impact of that business, along with continued success in winning new clients in the first half of this year. Furthermore, our diversified services are gaining traction, allowing us to introduce them to more clients. For instance, if we initially had 20 clients utilizing our e-commerce services, we have expanded that to 50 clients. Even a slight increase of 1-1% in revenue per client, while seemingly small, significantly impacts our bottom line. From this perspective, it seems that Wavemaker isn't seeing many challenges.
And how has it been for the industry?
There's a lot to look forward to in the industry. Some sectors are thriving, like automobiles and consumer durables, which are doing exceptionally well. Overall, things are on the upswing. While FMCG faces challenges due to input cost growth, these are normalizing. The stock market is performing strongly, and with the hope of a great monsoon, there's optimism for crop yields and economic growth. The first three months have been fantastic, surpassing even 2023, indicating sustained growth. Additionally, the funding winter of 2023, where spending drastically decreased, has now seen a recalibration, with a 20% growth. This suggests a positive trajectory. While I don't want to be overly optimistic, I believe there are more reasons to celebrate than to be negative.
The IPL is over and election results will be out soon, but the T20 World Cup has started. What are the advertisers' sentiments towards it?
There's some traction on the T20 World Cup, but it's not on the same level as the IPL. One reason could be that it's being held in America, hence there's still a bit of caution. However, I'm hopeful, especially since all the India matches are scheduled for 7 pm, which is a perfect time. There are seven India matches, including the highly anticipated India-Pakistan match. Whenever we have an India-Pakistan match, it draws a massive audience. This was evident in previous tournaments. Once viewership picks up, clients will likely start investing. I'm confident that after the initial week, it will gain momentum
What is the outlook for the next quarter?
The January to March period has shown significant improvement compared to last year. April to May, depending on the category, is experiencing growth ranging from 6-12%, which is quite promising. I believe this momentum will continue, and by the end of the year, we can expect around a 10% growth rate, which is a positive outlook. The July to September quarter typically sees lower activity, but with Diwali approaching in the second half and there being a new government by that time, next quarter looks good for the industry.
What is going to be the focus for Wavemaker this year and how much growth are you expecting?
We have created a lot of capabilities and want to take it to more of our clients, ensuring
that many more clients come on board with what we've built. This involves significant training and efforts to help more people within our ecosystem understand our initiatives. WPP and GroupM have made substantial investments in technology, tools, and research, including WPP Open, our unified platform. It covers everything from receiving briefs to campaign release and new post-campaign measurement, consolidating these processes onto one platform. These new areas are emerging, and it's crucial to swiftly onboard and train our team members to ensure they are comfortable with these developments. This will empower them to effectively present our offerings to clients, benefiting everyone involved. So, my clear focus for this year is to build upon what we have created and use and internalize the investments made by WPP and GroupM.
If the market is growing at 10%, I want to grow at 20%. To achieve this, I rely on several pillars of growth: the business acquired last year, the business I plan to win this year, and our value-added services. When you combine these with our anticipated organic growth of 10%, it totals to at least a 20% growth expectation.
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