Q: This month, senior WPP executives have been doing an Asia Strategy. I believe you are meeting the Finance Minister before leaving India...has this got anything to do with wanting to consolidate WPP's businesses in India?
A: No
Q: What is stopping WPP from going the whole hog?
A: Historcally, over time, WPP has increased its interests in JWT and that has been the process over a period of time. Now, we've stopped short of 100% and I intuitively feel that it's important to keep atleast part of the equity, in the businesses here in India in the hands of the people here. Over the last 22 years, the growth has been stellar.
Q: While you say it's about different horses for different courses, suely you would like to increase stake in Rediffusion?
A: Yes we'd like to but I don't think 27% or 40% is the right level.
Q: If you can't increase your stake in Rediffusion Y&R, what's keeping you from getting out of it and launch Y&R as a separate brand?
A: No, I wouldn't do that. That's the route we've gone with Dentsu and we have a joint company with Dentsu. What happens in the long run with Dentsu and its approach to global expansion is very interesting.
Q: So, you are saying that we shouldn't be expecting any change with WPP's equation with the Rediffusion banner?
A: No, you should never say never to anything.
Q: What about my meetings with the Finance Minister?
A: I don't comment on my schedule. But any meetings I might have here and whatever they might be about are with clients, with the media and with the government in the context of our expansion.
Q: Recently, there has been a trend - that all of television network buying was bought keeping in mind a new metric - commercial rating point. Do you see that as pressure on agency creative as well as media buying and planning?
A: What you are referring to is another iteration of accountability and measureability. I see that as being an opportunity because with this comes greater ability for us to answer the holy grail issues, like 'how much our clients spend and where should they spend them?'.
Q: We've been seeing a lot of big advertisers going out of their way to do digital work. Are you seeing monies being reallocated within budgets or are budgets being expanded to include the digital apace?
A: I would say it's a bit of both. The internet, interactive and search is about 8% to 9% of worldwide advertising budgets. People spend about 20% of their time online and there is a disconnect that needs to be resolved over time.
What clients are doing is, exploring this aggressively, so, that they can up the budget to 20%. The big companies are not doing this, they are spending 5% to 10% of their budgets, if at all, in this area. They will eventually become stronger spenders.
Q: To get ahead in the digital space by acquiring companies, is WPP paying too much?
A: Our business in India is about $250 million and in China, it's about $600 million this year. We will grow in China, our organic growth, more than our next biggest competitor. India will grow at 20% while China will grow at 28%. So, it's mostly organic growth.
Q: Is Omnicom's long term view of wanting to be in India and setting up agencies here, worrying you?
A: I think it's a lot of noise and a lot of talking but not much doing. The growth in our business is now 2.4 times as much and we've got a lot of chatter from Omnicom. Their interest and focus happens to be in Tokyo and New York rather than in Mumbai, Delhi or Shanghai.
Source: MoneyControl
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