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What's behind Media.Monks becoming India's fastest growing major ad agency?
Media.Monks' revenue nearly quadrupled, from Rs 31.5 crore to Rs 117.8 crore in 2021-22, according to the afaqs! Top 50 Marketing Agencies Report. It is structured quite differently from the usual agency.
S4 Capital's Media.Monks was established in 2021 with the merger of MediaMonks and MightyHive. Since then, the digital-first marketing, advertising and technology services company, has grown into one of the world’s most significant agencies. It’s active in 54 locations across 36 countries.
Media.Monks is now focussing on India. According to the Top 50 Marketing Agencies report by afaqs!, it’s the fastest-growing digital agency in the country. Its revenue jumped nearly four-fold in a single year - from Rs 31 crore in 2021 to Rs 118 crore (up 274%) in 2022. (The report’s ranking was for 2021-22, ending March.)
The agency’s offerings range from digital strategy and creative concepting to content production, ad films, CGI, AI, websites, mobile applications as well as games.
Speaking about the agency’s growth, Poran Malani, country head, S4Capital, says that the dramatic growth isn’t surprising, and is a part of their plan.
“The other agencies were built 70-80 years ago. We were built in the digital age. We’re able to adapt and change all the time.”
“There’s no legacy that we’re building on. This (digital) is our skill set. Our survival depends on two things - staying on the edge of technical disruption in the creative world and scaling.”
Robert Godinho, MD at Media.Monks India, states that the growth globally and in India, is averaging 30% and 60%, respectively.
He also says that at the moment, content is the highest contributor to the agency’s growth, followed by media.
The agency is focussing on acquiring the right talent as well as expansion, say Malani and Godinho. Malani shares that the company’s structure allows them to adapt and acquire talent much faster than the competition.
"We’re going to focus on attracting the best talent, training and retaining them.”
“We want to be No.1, both in size and reputation. We’re at the very beginning and have a long way to go. For example, if you don’t attract the best gaming and tech talent, you may survive for the next one or two years, but can you do it for the next 15 years? We’re going to focus on attracting the best talent, training and retaining them.”
"It’s becoming increasingly important for clients to look at agencies that are able to have control over execution."
Godinho adds that another factor that differentiates the agency from the competition, is that a lot of its skill sets lie in-house. It’s becoming increasingly important for clients to look at agencies that are able to have control over execution.
“We have in-house coders, animators, designers, and DOPs. We have our own studios. We’re building digital avatars and influencers through artificial intelligence, as well as solutions that are more affordable, automatable and personalised for clients.”
Looking ahead
As per Malani, the agency’s revenue is split 50:50 between project work and retainers.
He adds that there’s a lot of potential in India, as a market. What’s aiding the agency’s growth is the fact that it’s able to bridge the gap between brand and technology.
“If you go back 60-70 years, TV was new, and you had radio and print. Even after 20 years, TV used to get only 20% of a client’s budget, and it wasn’t until the Coca-Colas of the world came along that things became more interesting. What they were able to do is shift the entire ecosystem towards TV within five years."
“Our role in India is to do the same. At the moment, there are brands that have allocated 30% of their budgets to digital. We need to build the client’s belief beyond performance (marketing). That’s what we see happening over the next five years.”
Challenges
What’s happening globally at the moment, is a cause of concern, as per Malani.
"The challenge is to keep up and not water down to save numbers."
“India is growing, but the rest of the world isn’t, and we have to protect ourselves. We have to make sure that the issues – be it related to the economy, elections or banking system, don’t blow us over.”
“Second, we have to be aware that what was good last year, won’t necessarily be good this year. Our competitors will catch up and experiment. They can come back with a vengeance. So, we have to be prepared for that and stay ahead. As we grow, the challenge is to keep up and not water down to save numbers." he adds.