Nagesh Alai, director – India Operations, Draftfcb Group and president, AAAI (Advertising Agencies Association of India) is not at all surprised with media agencies starting to offer creative solutions and creative agencies providing media solutions. In this conversation with Campaign India, Alai talks about the current state of the media and advertising industry, and steps required by agencies to keep the industry growing.
Commenting on the challenges facing the industry, he explained, “Rising inflation and prices are definitely putting a dampner on the consumer demand, and as a result productions are reduced across all sectors. These are all pressure points for the second-half (of the year). Obviously, the agencies will have to plan accordingly and don’t get carried away with investments. What we are trying at the association is to bring some financial literacy among the agencies, or to restate the need for financial literacy and prudence. So that you are careful with your costs and negotiations with your clients, and never ever take business which are not adding to your bottomline.”
Talking about the importance of brands working with network agencies, he added, "I would like to believe that advertising is not only about producing a 30 second television commercial. It is an end manifestation of so many things which go behind the scenes in terms of understanding the consumers, mediums, how to have a targeted reach. There are so many aspects to it. I do not think it will work out successfully".
Alai also informed that the association is actively involved in discussions with several other industry associations including IBF and NRS for arriving at a common ground on various factors. Watch the video here: