Keith Smith, President, TBWA\International

"In markets like the US and UK, the focus now is not on the traditional media people but people who understand touch-point planning...You can't necessarily separate the big creative idea from the media -- it is not about having the big idea and then deciding on which media you want to put it. You can take the buying process away in an agency but the actual planning process should get closer to creative."

TBWA is one of the most reckoned agencies worldwide and the organisation has some ambitious plans for the Indian market. With its Disruption theory, the agency has showcased some good work for its clients internationally. Now, as TBWA is close to completing a decade in India, Keith Smith, President, TBWA\International, takes stock of the Indian operations and the way forward.

In this interview with Noor Fathima Warsia, Smith speaks of his experiences with India and where the market stands on the international scene. Excerpts:

Q. Also, unlike most markets, India is still on the commission structure. What is the plus or minus you see in this?

There are other markets like Japan that are still commission based. It was the separation of the creative and media function that really kicked in the fee structure and it really has its advantages. You should not base your ideas on how much would a client spend on TV and that tends to happen in the commission structure. I don't see why India should not go the fee route sooner or later; I believe many players are already doing it. That said, India is a traditional market even now and the commission structure will be here for a long time.

Q. India is the centre of discussion today for almost all media and advertising discussions. However, whether it is advertising revenues or performance in international awards, India still has a long way to catch up. What do you think is holding us back?

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It is just a matter of time. India is probably where China was five years ago and people were saying exactly the same thing about China then. People were talking about 9 to 10 per cent growth year-on-year and that there would be increase in ad spends. And that is happening today; we have clients in China who are spending amounts that are significant even by Western European standards. It is just a question of the maturity of the market.

Q. Is there anything interesting you have identified?

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There are always things on the radar. India is not an easy market to buy but we are always on the lookout for opportunities in various areas and nothing really to talk about right now.

Q. How is the pace of growth in India?

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The pace of change is the same that China had. However, a strong point in favour of India is its very strong creative culture. China is a state-driven economy and I think that shows in the kind of thinking that comes from there. India has a strong film culture and so it is not surprising that we have Indian creative people doing very well in international awards like Piyush Pandey or Prasoon Joshi or R Balki. On the other hand, China does not have a single known creative director. Given the strong creative and good economic growth rate, I'd say India will get there faster than one thinks.

Q. But in India, the game is still a lot about volumes...

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It is today, but whether it still would be a year or two from now, is debatable. At the outset, you need to have media strengths -- there is no question about it. But is that redefining anything? In the US, for instance, there are small agencies that do all their media in-house and their clients don't seem to be suffering much.

Q. Another area that has really been busy in India is mergers and acquisitions. How important do you think it is for a market like India?

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Very important! We are looking at it all the time but you have to keep a few things in mind. When you are trying to develop a culture -- India or any other market and we are working very hard in developing the true TBWA and Tequila culture anywhere that we are and operate in - if you are trying to make an acquisition, it has to fit perfectly with the culture you are trying to establish in addition to bringing in the relevant value add.

Q. Taking your point on the creative and media segregation, a school of thought today is that the two should be merged. What is your view on that?

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There are already some changes coming - evolution of sorts can be seen. In markets like the US and UK, the focus now is not on the traditional media people but people who understand touch-point planning. For instance, in LA we are experimenting with something called the Media Rocks Laboratory. We have touch-point planners who are not there to buy media but work with the creative people. You can't necessarily separate the big creative idea from the media in media relationships. So it is not about having the big idea and then deciding on which media you want to put it -- it really doesn't work very well that way. It is better that you let these people work together. So, we are actually experimenting on that in the UK and US, and we are going to do that in markets like Japan as well.

This is not going back to the integrated structure. You can take the buying process away in an agency but the actual planning process should get closer to creative.

Q. We are seeing quite a few developments in India where media players are mulling over consolidating their buying function. Does this bring in any relevant media strengths?

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It is debatable, isn't it? Does the straightforward volume actually get you the discounts that agencies once used to get? We really don't know. Media owners are getting smarter and don't necessarily see volume as the simple way of guaranteeing the media agency the kind of prices they used to get. Media companies have become savvy and want to work with companies that have innovative ideas. It is a slightly different game now. Twenty years ago in Europe it was all about volumes but that is changing.

Q. Finally, how does TBWA\India stack up in comparison to TBWA offices in other markets?

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Well, not in the top order of course but then India itself isn't in terms of international revenue figures. It is not there but it has huge potential with an economic growth rate of 9 to 10 per cent. What we are doing now is planting the seeds of where we want to be in the future. That is what we did for China - it took us a long time to get it right but we finally got it right in the three last three years. All the offerings are working well there now and we expect the integrated TBWA business model to take off in India soon too.

India offices are already growing very fast with a healthy new businesses rate in 2006. In 2007, you can see us at number 12 or 13 in the market if all goes as planned. And if we continue to be true to our business model, we should achieve even greater heights.

Q. Omnicom is suddenly very active in India and we understand that they are ready to launch independent agencies as well. Does this impact TBWA in India in any way?

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Doesn't impact at all.