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After acquiring a majority stake in Hungama Digital in 2012, JWT India's digital division, called JWT Digital, is looking out for other alliance options in the new technology space such as in apps and social media. Mohit Hira, digital head, JWT India, tells Digbijay Mishra that clients are shifting investments and priority to digital advertising. Edited Excerpts:
How is JWT's digital business growing and what are your plans?
It is early days for JWT Digital (we are two-years old) but we know that we are sitting on the cusp of a huge potential market. Many of our clients have gone on to the digital space; we are partnering them, not just using in-house resources, but also pooling in the best resources available. That is why we acquired a majority stake in Hungama (Digital) last year, which is one of the finest digital agencies. We are looking at some other spaces as well.
What are these new spaces of interest?
I really cannot talk about that in detail. We are open to alliances or acquisitions, if they are in new technology such as in mobile, social media or apps. We are pursuing some options.
We have seen digital agencies funded by venture capitalists (VCs), what do you make of it?
It is good that there is more funding available so that agencies will be able to invest in quality service. If VCs are investing that means they have done their homework, indicating there there will be stability. That's why JWT, globally, is growing digitally in a big way as clients trust us for our overall communication solutions. You cannot ignore digital anymore.
But in India, the perception persists that digital always plays second fiddle in communications?
I don't agree that advertisers are seeing digital as a secondary option. There are enough and more advertisers who have shifted not just advertising investments, but priority and time to digital campaigns. For example, at NIIT, where I was earlier, my target group comprised students, who spent a lot of time online. It was not like we briefed the mainline agency first and then moved to digital for its advertising. The deep integration I had seen there is happening with other clients too.
How has the 51 per cent stake purchase in Hungama Digital helped you so far?
Hungama (Digital) brought in a certain set of skills and competencies with the attendant credibility and trust. It has a terrific team in terms of strategy, business, technology and production. Infact, Carlton (Carlton D'Silva, chief creative officer at Hungama Digital) was on the Cannes jury for one of the categories. The team has complemented us with skills we did not have.
How have you seen companies take to digital advertising?
Early adopters were technology companies, who were on the Internet like eBay, Microsoft, since for them it was natural. The second wave has seen companies that have youth as a target group. Today, almost every brand has youth as its audience, be it a deodorant, mobile operator, chewing gum or branded shoes. So, that's where a lot of interesting work is being done. Surprisingly, one category which has exploded is automobiles.
Does the digital medium cost less than traditional media?
It is a myth that just because it is digital, it should be cheap. You are putting in as much effort in cracking an idea as you would in any medium. Clients need to realise that there is a cost to an idea.
Owing to the economic slowdown, is the industry feeling the pinch?
There is enough research to show that in a shrinking economy, brands that keep investing in advertisements, tend to gain a lot more. I don't think we are feeling any such pinch now.
