Publicis Loses Idbi Principal Ad Account To Network

In a recent development, the Rs 100 crore plus advertising agency, Publicis India, has lost the advertising account of IDBI-Principal Asset Management. The account has now shifted to a small-sized agency called Network. While the size of the business was Rs 2-3 crore while with Publicis, analysts feel that IDBI Principal will hike the advertising budget to Rs 5 crore now.

Confirming the move, IDBI Principal's spokesperson told Business Standard, "The account has moved from Publicis to Network as of February 25. We needed a change of advertising agency in terms of creative as well as servicing."

Apart from Network, four other agencies -- TBWA Anthem, Saatchi & Saatchi, Horizons and Ad Factors -- pitched for the account.

 

Apparently, this is the third mutual fund account that Publicis has lost in a span of three months. Prior to IDBI, the agency had to part with Alliance Capital account followed by SBI Mutual Fund last month.

Clarifies Praveen Kenneth, chief executive officer, Publicis India, "I would not like to say that we lost SBI Mutual Fund and Alliance Capital. We had to give up both the accounts in order to hold on to IDBI Principal's account. But it is sad that we lost IDBI Principal. Basically, the client had been wanting to go for a pitch for a long time."

However, industry sources indicate that IDBI Principal chose Network over Publicis because it felt that Publicis could not understand the essence of the mutual funds business. IDBI Principal's spokesperson said, "Network may be low profile in its operations, but the agency has a phenomenal industry knowledge and excellent expertise in the mutual funds field. Its creative is backed by thorough research. Also, the agency works with a client in tandem where communications is concerned and delivers results on time."