Storyboard18 | RK Swamy and BBDO part ways. Here's why

As we got into a conversation with Swamy, he spoke about the amicable end to their partnership, the changes he witnessed in the advertising industry, the big disruption he sees coming, and how talent still continues to be the biggest challenge for agencies.

A partnership is defined by two equal partners. We always believed that we need to be a partner and not be subservient to anybody. Normally, when a partnership ends, there could be possibilities of acrimony.

The reason why we decided to go our separate ways was to integrate our offerings (RK Swamy Hansa Group) as one. BBDO was only in the advertising business and offered services like media and creative. And, we were serving the same ecosystem of marketers with services like marketing analytics, media research, events, health care communication, public relations, outdoor, AdTech, MarTech, etc.

So, the multiple clients we have can also be served across systems in a unified structure to help us deliver better than a structure where BBDO’s interest would be in one small segment. And, both the partners agreed that we function separately in an amicable manner.

There are a few companies we have signed up with but we are not supposed to disclose them as of now. The consolidated turnover of RK Swamy Hansa Group is 100 million dollars. We have close to 1000 people working for us full time. We have multiple call centres—ingoing and outgoing calls with consumers for ratings—where the number of people working for us is another 1000. And, there are field operations with another 500 people working for us. As a group, we may have 2500 people working for us.

In 1985, life was very simple then. We had only one television station which was Doordarshan. Print was small and we did not have the digital medium then. The setup of the independent media had not happened in a full proof manner. Hence, full service agencies did not feel threatened. Then life became more complex as more and more channels began to emerge. Media broke away from mainstream advertising. The commission structures began to get challenged. As things moved forward, the industry had to be reconfigured.

The fundamentals of advertising even today have not changed. We are always looking to connect with the consumers. The medium may change, the messaging may change, but the reason to communicate with the audience will never change. People get confused with the way they have to communicate rather than what needs to be communicated.

Digital is all prevalent. Short form videos too are relevant today. There was a time when people felt that it would be difficult for them to adjust with short form videos. Today, videos are very much consumed for longer durations.

One main challenge is attrition. Another challenge, which is not just in India but is happening around the world is people or talent, who have worked with larger agencies are moving out and starting their own. They are able to provide personalized services—because it is their own business—and there is a cost advantage factor where they don’t carry the tag of a large entity. They can provide the clients good quality service at a comfortable price. But, this does not work for everyone. This is because most of these small agencies are not adequately staffed.

There is so much talk happening about artificial intelligence (AI), machine learning (ML), virtual reality (VR), augmented reality (AR) that it would take over and even talks about programmatic buying and merged reality.

But, what could create havoc is the loss of privacy which will make blockchain technology very important. I think technology has to reach a stage of being able to ensure privacy.

Today, communicators are so super creative that I find it difficult to comprehend what they are trying to say. A good amount of money is spent behind communication where nothing specific is being communicated. Is it my inability or lack of being unable to understand their communication? I am not sure.

When I look at IPL, sometimes I feel their communication just leaves you cold. Since crores of money are spent behind communication, when one is unable to comprehend, it doesn’t leave them any wiser. I hope, people who create such advertisements or buy into them, realise the folly that they are committing.