Bartle Bogle Hegarty, arguably the most creative ad agency in the world, has been planning an office in India, seventh across the globe. Headquartered in London, BBH has offices in Singapore, Tokyo, New York, Sao Paulo and Shanghai.
At present, BBH, which was started in 1982, boasts of a global billings of $ 1 billion and Publicis Groupe - the leading advertising network has a 49 per cent stake in the agency.
In an interview with Business Standard, Simon Sherwood, chief operating officer, BBH worldwide, tells Prasad Sangameshwaran and Rashmi Hemrajani on how BBH with its selective global presence is suitable for the client requirements of the future and the agency's India entry strategy. Excerpts:
Is BBH planning to set up operations in India?
The Indian advertising industry pegged at Rs 13,200 crore (Rs 132 billion), has been growing at a 20 per cent rate every year. We would be entering the Indian market but not before the end of 2007.
BBH needs to get their entry strategy right, if you start things correctly, everything else would fall in place. The Indian office would be only our seventh operation across the globe. We believe in maximum coverage via a mini-network.
Where are you planning to open your first office and how many offices are you planning in India?
Probably Mumbai, as most advertising agencies are in the city and it is considered as the financial capital of the country. BBH believes that you don't have to be physically present to serve the clients in specific markets.
It's widely believed that your agency will be approached for a alliance by agencies like Lowe India which will lose a significant part of the Lever business to you?
We have met several agencies in India but have not got into any talks for a joint venture, merger or acquisition. Lowe is a fine advertising agency and in some cases we handle the same brands such as Axe and Unilever detergent products. But we cannot tie-up with them as we are a part of different networks.
We have also heard that BBH is in talks with Orchard (the bouquet agency of Leo Burnett India)?
Orchard is helping us for a specific client in Singapore. But that's as far as it has gone, we are not looking at a tie-up with them.
So would you enter India on the strength of your global clients like Unilever?
The Indian advertising industry is a large space where everyone can survive and it would be wrong to say we will take anything away from anybody.
Does BBH encourage clients to take decisions on the central level?
As we don't have a presence in most markets, we prefer clients to take decisions on a central level.
