We plan to focus on both organic growth and selective acquisitions: Rana Barua, Havas

Early this year, Havas expanded Rana Barua’s role to Group CEO for India, South East & North Asia, placing nine additional markets under his leadership.

With nearly three decades of experience, including five years of managing Havas' India operations, Barua now oversees over 2,000 employees across Havas Creative Network and Havas Media Network.

He introduced the "One Asia" philosophy, which leverages regional expertise to bridge geographical gaps and implemented the Havas Village model in India, enhancing growth through integrated and cross-sell pitches.

Under his leadership, Havas India has attracted major new clients such as PayU, Aditya Birla Group, and Coca-Cola Company, highlighting the firm's expanding influence and strategic acumen.

In an interview with exchange4media, Barua discussed his experiences since assuming the new role, key learnings, the impact of the One Asia philosophy and much more. 

Edited excerpts: 

How has your experience been so far. What have been the new learnings and what have been your primary focus areas? 

With a year’s experience, I have a clearer understanding of the profile of the markets across the nine countries we operate in. Working directly in these markets has revealed their intricacies, contrasting sharply with the more simplified perceptions from the outside. Smaller markets like Singapore, despite their exciting prospects, pose significant challenges due to their limited scale. Indonesia, on the other hand, is notable for its rapid economic growth but presents its own set of challenges related to size and scale. Talent acquisition is another hurdle; unlike India, where there is an abundance of talent, these markets require finding the right fit in a more constrained pool. The overarching opportunity in Asia remains substantial. 

Our approach, termed the "One Asia" philosophy, leverages the diverse expertise available across the region. By integrating talents from Thailand, Japan, the Philippines, and Vietnam, among others, we overcome geographical and time zone barriers. This philosophy has already started yielding positive results as we restructure operations and prepare for expansion. 

Looking forward, we plan to focus on both organic growth and selective acquisitions. Singapore stands out due to its strategic importance. Despite its high costs and competitive nature, Singapore’s resurgence and governmental efforts to attract industries signal significant growth potential.

Our acquisition strategy will be more selective, given the smaller number of viable targets compared to larger markets. We are considering acquiring expertise, which will enhance our capabilities and complement our existing strengths. Overall, while the market constraints and fewer options present challenges, we are confident that our focus on strategic alliances and organic growth will position us effectively for future success.

What new technologies or areas of expertise are you introducing in India, or expanding to other markets?

There is a significant amount of work happening in consumer experience (CX), creative media, and health, both globally and in the region. All three areas are highly active, with a strong focus on tech-driven innovations. We are investing heavily in AI and have a global partnership with Adobe, which we announced last year. However, the direct impact of these advancements is still unfolding. While some countries have adopted these technologies more rapidly, we are balancing the transition between cutting-edge technology and more traditional methods of working.

What sets India apart is our ability to manage both approaches effectively. In contrast, other markets may have adopted a specific technological focus, but India excels in integrating modern and classical methods. We are also focusing on what I refer to as the "experience journey". This concept encompasses not just consumer experience, UX, or UI but a broader experience platform journey that is undergoing significant transformation. This is a key area of focus for us, as we continue to evolve and adapt to these changes.

How is the Havas Village model functioning in India? What have been some of the key successes and challenges in integrating different services and teams under this model?

Havas India has grown into a network of 24 agencies offering diversified services with over 2,500 employees, and the collaborative Village model has been one of our key pillars of growth.

At a time when advertising budgets are under pressure and big pitches are few and far between, the cross-sell village model is the best way forward. We have strong relationships with over 200 clients on our roster, which has led to both organic and cross-sell growth. This year, we achieved over a strong 90% growth in the integration model compared to last year, with 25 integrated and cross-sell pitches.

While I can't disclose all the new business wins due to NDAs, one case study I am particularly proud of is for Coca-Cola Company and how three of our agencies are working with them. That’s the power of integration. In fact, one of the agencies, PR Pundit also won at Cannes Lions this year for their work on Coke Studio.

This year Havas announced several significant partnerships and collaborations. How have these initiatives contributed to Havas' strategy in the APAC region? 

In India, we are seeing tremendous growth through diversified services, almost to the tune of over 30-35%. This is primarily because clients are increasingly looking for innovative and meaningful business solutions. Over the last six years at Havas India, I focused on strengthening our product, varied expertise and the village ecosystem.

We are now one of the strongest in the region in terms of strength and size. When the regional mandate was added to my remit, I identified several gaps in expertise. India can play a huge role in filling these gaps because we have tried and tested our expertise here. And we have competent leaders, advocates who are ready to diversify and enhance and expand.

How has this year been for Havas India in terms of business performance? How many new clients have been added so far?

We have been growing at a healthy double-digit. For us, organic growth from existing clients has been the biggest driver. Along with integration and cross-sell. While the environment is challenging, Havas continues to grow and deliver to the global milestones and agreed budget parameters.

In terms of new business, we have added several key clients across the village this year, including PayU, Usha Martin, Yatra, Aditya Birla Group, Panasonic, Motilal Oswal, Coca-Cola Company, Nvidia, Mahindra Auto, Hero MotoCorp, Reliance General Insurance, Tetra Pak, ICICI Bank, Muthoot Fincorp, Bose, Dainik Bhaskar, Intuit, Viacom18, JLR, VLCC, Agoda, Bira91, Lakme, Dove, Garnier, Too Yumm, Tata Steel, Dr. Reddy's Labs, and several others.

How is this year's festive period rolling out across media as compared to the previous year? How much growth can we expect?  

The overall sentiment for the festive season is positive, despite large-scale sporting events and elections in the first half of this year. India’s total advertising expenditure (AdEx) is projected to grow a little above 10% in 2024, driven by robust economic recovery, increased consumer spending, and significant digital transformation across sectors.

The festive period, from September to November, is crucial for brands to achieve their sales targets, with extensive campaigns planned around major festivals like Onam, Diwali, and Navratri. This year, we expect around 30% of total ad spending to be generated during the festive season.

Given that digital adex has surpassed TV adex by a significant margin, is TV advertising really on the decline, or does it still hold value in the current landscape?

TV advertising is changing its form – with the growth of CTVs. TV advertising is moving from linear TV to CTVs. The proliferation of OTTs has added an additional layer of complexity to the overall TV viewing landscape. While digital will continue to grow in the years ahead, the linear TV is also here to stay.

More than 80% of homes in India remain single-TV households, making it essential for brands to continue leveraging television to reach the masses. Linear TV, especially during festive campaigns and major events like World TV premieres, remains a critical part of the media mix. At the same time, Connected TV offers advertisers flexibility and targeted reach, allowing for a more balanced and effective strategy.