By ANINDITA SARKAR
Indiantelevision.com Team

(29 July 2009 11:45 pm)

MUMBAI: Leo Burnett has chalked out a four-step strategy as it pushes for a 10 per cent revenue growth this year in a tough market.

Says Leo Burnett India chairman Arvind Sharma, "In 2008, our revenue grew by 20 per cent. But as global recession hit the economy, many clients from travel, BPO/software and mutual funds tightened their advertising spends."

For the first half of the year, the agency's focus was to protect its present clients and businesses. "We helped them witness a healthy and valued growth," says Sharma.

Beginning from July, the second phase saw Leo Burnett pick up some large businesses like Unitech Wireless, Philip Morris and Samsung Star Touch Screen.

Elaborates Sharma, "In a bid to foresee further growth, our second part of the plan was to pick up some large businesses. We have already signed on a few large brands like Unitech and are now in the process of adding more."

Leo Burnett, which derives 70 per cent of its revenues from local clients, will continue to develop its marketing services business with a core focus on three areas - activation, digital and shopper marketing.

"We have done a lot of activations for a number of our clients, the most visible one being the Hindustan Petroleum activation across petrol pumps. In the digital space, 'Jago Re' was the more recognised activation," Sharma explains.

In its fourth leg, Leo Burnett will look at making acquisitions of small specialist agencies with the right talent pool and potential.

Sharma believes that the advertising sector will take another six months to stabilise. "While I expect the client ad spends to increase by 5-6 per cent this year, the advertising agency revenues for the year will remain flat. Last year, the advertising agency revenues grew by about 12 per cent," he says.