Mumbai: Omnicom Group Inc., the marketing communications conglomerate with more than $10.5 billion in revenues, will soon launch OMG Digital, its consolidated digital media arm, in India in an effort to tap a market that, while small, is growing at 50% a year.
An executive at Omnicom India who did not wish to be identified said OMG Digital will start operations in India soon, but declined to disclose the time of the launch.
Globally, OMG Digital oversees all of Omnicom’s digital business. That includes digital units of Omnicom’s media specialists such as OMD (Optimum Media Direction) and PHD. It also shelters Next, Omnicom’s emerging media practice, and all digital acquisitions. In terms of media spend, that translates to about $2 billion of business.
In India, OMG Digital will likely be the conglomerate’s entity that oversees all digital operations of various group companies, including OMD, Tribal DDB (the digital arm of Mudra DDB Pvt. Ltd, an Omnicom agency), and new digital media acquisitions.
The Omnicom India executive said OMG Digital would be the functional leader in digital media across Omnicom Media Group. He added that Omnicom would “make investments in new digital initiatives” through OMG Digital.
Omnicom is among the first marketing communications conglomerates to consolidate digital media buying. The digital advertising market in India accounts for 3-4% of total ad spend—globally, this ratio is 7-9%. The market, however, is growing fast. Last year, digital media buying in India was worth Rs218 crore and it has been growing at 50%. According to Leroy Alvares, country head, Tribal DDB, there are clients, typically from travel portals or financial services firms, who spend 30-40% of their budgets on digital media.
The consolidation of digital media buying will strengthen Omnicom’s negotiating position with companies such as Google, Yahoo, and Microsoft (for MSN). It will also provide more consumer information that the company can use. “The spirit of a cookie is what we’re after: any and all intelligence that can be generated from our online campaigns, we’re looking to capture,” OMG Digital chief Sean Finnegan had said at the time of the company’s global launch. There is a need to consolidate digital media buying since this space is too fragmented, says Chandradeep Mitra, president, OMS, the media specialist of Mudra DDB. “Mobile on Internet, broadband content, social networking, blue-tooth technology etc drive digital investments in the region,” he adds.