MAM
Investment vs returns: What ad agencies should know during Covid2019
Advertising and marketing agencies have witnessed a different horizon during the Covid2019 pandemic, especially the ones serving digitally. Several brands have diverted their marketing spends towards digital mediums, while several others still believe in traditional advertising as the sole solution. Regardless of what experts and marketers think, the growth of advertising has been consistent, and with the markets becoming increasingly competitive, the ad world is surely going to grow unstoppably.
An ad agency largely invests in the following formats, and let’s see how they can anticipate returns in all of these domains:
● Advertising spends for clients
Several ad agencies invest in the advertising spends of their clients and get paid for it in return, on a frequent interval. Some agencies, in this process, also charge an ad management fee which is usually a percentage of the total advertising budget finalised upon mutual agreement. Due to the skyrocketing digital traffic during Covid2019 times, the average cost of advertising for sales/impressions decreased significantly which eventually led to a better return of investment for both the agency and the brand.
● Good content creation
We have heard numerous times that ‘content is the king,’ and true to its meaning, creating the right kind of content is really important for agencies and brands alike. Once you invest rightly into creating relevant and impactful content, it is sure to give you returns which go way beyond just sales conversion.
There are several success stories of how an impactful content has created the right kind of brand recall and visibility for several advertisers across the globe.
● Efficient teams
Covid2019 brought in difficult times for businesses across the globe. With the buying cycle at a halt, cash flow decreased and it became increasingly difficult to pay the salaries and remuneration. In such a scenario, agencies that have continued to invest in their efficient teams will flourish in the longer run.
Such an effort not only adds up more credibility but also develops a sense of trust for the agency among the team members. Investing in the right team is a must and returns are sure to come.
● Client relationships
Due to the economic slowdown, some brands had to stop agency services and keep the work on hold for a certain period of time which varied from a month to may be a few months. While one of the perspectives says that you should avoid working when not being paid for it, on the other hand, in such a scenario, several agencies choose to stand by their clients and support them in times of crisis. This strengthens their bond with their clients and helps in developing a connection for a lifetime. Such investments in building client relationships always pay off in the longer run.
(The writer is co-founder and CEO of Gemius. The views expressed are her own and Indiantelevision.com may not subscribe to them)
Brands
Wipro hires 7,500 freshers, withholds FY27 hiring outlook
Profit rises to Rs 3,522 crore, Rs 15,000 crore buyback announced.
MUMBAI- Hiring may be on, but visibility is off, Wipro is adding talent even as it pauses the crystal ball. The company hired 7,500 freshers in FY26 but stopped short of offering any hiring outlook for FY27, underscoring the uncertainty gripping the IT services sector as it pivots towards an AI-led operating model.
The disclosure came alongside its fourth-quarter earnings, where management flagged volatile demand conditions and refrained from committing to future workforce expansion. Chief human resources officer Saurabh Govil noted that over 3,000 of the total hires were onboarded in the March quarter alone, signalling continued intake despite a lack of clarity on deployment pipelines.
This divergence active hiring without forward guidance reflects a broader industry pattern where talent acquisition continues even as deal conversions remain uneven and client spending cycles stretch. Wipro expects its IT services revenue for the June quarter to range between a decline of 2 per cent and flat growth sequentially in constant currency terms, reinforcing near-term caution.
Chief executive officer Srini Pallia pointed to artificial intelligence as both a disruptor and an opportunity. He said evolving client priorities are pushing the company towards outcome-driven engagements, with Wipro increasingly focusing on a services-as-software model through its AI Native Business and Platforms unit. The shift marks a structural change from traditional headcount-led growth to AI-enabled delivery frameworks.
The company has already committed over $1 billion to its AI ecosystem, with investors closely watching how these investments translate into revenue. For now, the numbers present a mixed picture. Net profit rose sequentially to Rs 3,522 crore, while revenue grew 3 per cent to Rs 24,236 crore. However, core IT services performance remained under pressure, with full-year revenue declining 0.3 per cent in dollar terms and 1.6 per cent in constant currency.
Large deal bookings offered a counterpoint, rising 45.4 per cent year-on-year to $7.8 billion, highlighting a widening gap between deal wins and actual revenue realisation. On a quarterly basis, IT services revenue slipped 1.2 per cent sequentially, signalling continued softness in execution.
Margins, however, told a more optimistic story. Operating margins expanded to 17.3 per cent in the fourth quarter, up from 14.8 per cent in the previous quarter, reflecting improved cost discipline. That said, the company cautioned that upcoming wage hikes and the ramp-up of large deals could exert pressure going forward.
Attrition stood at 13.8 per cent in the March quarter, indicating stabilisation after periods of elevated churn. Alongside its earnings, Wipro also announced a Rs 15,000 crore share buyback, reinforcing its focus on shareholder returns, with a payout ratio of 88 per cent over the past three years.
Taken together, the numbers capture a company in transition investing in AI, maintaining hiring momentum, but navigating a demand environment where growth is uneven and visibility remains limited.
