MUMBAI: Acquisitions and mergers seem to have become a norm in the advertising world. The latest agency to join the bandwagon is Indian advertising agency Scarecrow Communications (Scarecrow), which has now been acquired by international advertising network M&C Saatchi.
Scarecrow will now become Scarecrow M&C Saatchi, in a 50:50 partnership with M&C Saatchi. When asked about the technology and tools that the company would get access to with this merger, Scarecrow founder Manish Bhatt said that they were still unclear about it but will start the conversation on the same soon.
The renewed revenue and profit sharing will be on the basis of the new shareholder stake.
Founded in 1995, M&C Saatchi has today become the world’s largest independent advertising network. Powered by its philosophy brutal simplicity of thought, it comprises 27 agencies in the Americas, Europe, Africa, Middle East and Australasia and eight specialist companies, which include cutting-edge outfits such ass M&C Saatchi Sport & Entertainment, M&C Saatchi Mobile and the fast-growing customer engagement agency, LIDA.
Scarecrow will retain its own identity and will operate with full creative freedom, exactly the way it used to. However, as expected, there will be an integration with global financial processes and compliance practices.
The eight-year-old Scarecrow was a part of the new wave of independent agencies in India that bloomed about 10 years ago but was able to achieve profitability and scale, in a relatively short period on the strength of its campaigns for Quikr, &pictures, Religare, Baby&Me (Nestle), FunFoods (Dr. Oetker), Kohinoor (McCormick), Haier, DBS, Edelweiss, Danone B’lue, Wagh Bakri, Rasna, Living Foodz, Vivel and Fiama Di Wills (ITC), Only Vimal, DNA, Rupa, Spykar and Hungama.
Today, it has an extensive roster of brands on AOR (agency on record), including Viacom 18, Capital First, Emami, Future Generali, Zee Learn, Alcon Novartis, SebaMed (USV Pharma), Lactalis, Radio City, VTP, Mahindra, Business Standard, Arthimpact, Anchor, Panasonic and Reliance Capital.
Scarecrow’s story over the last eight years and what has been achieved reminds M&C Saatchi founder Lord Maurice of the story of M&C Saatchi itself. He says that it’s a story of hard work, determination and dedication.
Maurice adds, "An individual acting alone or almost single-handedly can make, what seems highly improbable, in fact happen. This is why, to welcome Scarecrow to the federation of like-minded, like-thinking entrepreneurs, that is the M&C Saatchi network, is a most important occasion for the company and for me. I’m sure Scarecrow M&C Saatchi will develop into the jewel in our crown and this is a historic start for a great new partnership.”
M&C Saatchi worldwide CEO Moray MacLennan says the company's strategy is to find top talent in key markets and give it the freedom, responsibility and backing to flourish. He adds that it was relatively easy to identify India as a key market but it was challenging to find the right talent.
Bhatt agrees that international multinational agencies, including Dentsu Aegis Network, WPP, Y&R and Chiel, were looking for acquisitions but the company did not want to associate with multinational corporations. But after meeting Moray MacLennan, David Kershaw and Jeremy Sinclair in London, the team was clear that M&C Saatchi was the perfect partner for Scarecrow. "They have entrepreneurship in their blood. The culture of M&C Saatchi, that sprung from the personalities of the brothers themselves–irreverence, low tolerance for jargon, challenging the established order and the history of many larger-than-life campaigns–are qualities we identify with," says Bhatt.
