How Lonely Is It On Madison Avenue, Really?

He may be sans Cinthol, Vicks, and Whisper, but CEO Sam Balsara isn't sans media-buying skills, energy-or ideas.

Sam Balsara, CEO, Madison Advertising: "These are some of life's cruel blows. I am old enough to bear them"

''I have been stupid for the last 12 years,'' he grins, as foxily as only Sam Balsara can. Zero is the number of accounts Madison Advertising (Madison) has lost in the last 12 years (if you exclude NELCO, the Tata Group's burnt-out TV project, an account no one grabbed). Sixteen is the rank of this mid-sized ad-shop. And with capitalised billings of close to Rs 80 crore in 1998-99, Madison has registered steady growth-rates.

No wonder CEO Sam Balsara has been jolted right out of his cushy rocking (office) chair: he has lost half his business in 3 months. In April, 1999, Madison lost Godrej's Rs 15-crore Cinthol account to Ambience Advertising. Less than 2 months later, Madison ended its alliance with the global ad major, D'Arcy Masius Benton & Bowles (DMB&B)-part of the $8-billion Macmanus Group-which now has a 51 per cent stake in Ambience. As a result, Madison lost its most prestigious client, Procter & Gamble (P&G), and the Vicks and Whisper accounts, which are together worth close to Rs 25 crore.

''I suppose these are some of life's cruel blows. I am old enough to bear them,'' shrugs the 47-year-old ad veteran. Pulling on his well-known reserves of ''limitless energy,'' Balsara is donning his strategy cap. Apart from running after new business, he is planning to leverage Madison's strength in media-buying. ''It's a challenge, and I am confident we can face it,'' he avers. Adds Rajiv Agarwal, 44, Managing Director, Enterprise-Nexus: ''Madison is going to pull through not just because it is a fabulous agency, but also because of its energetic CEO.'' Can Sam play it again?

13 IS THE AMBIENCE

Thirteen is a lucky number for Ashok Kurien, the 49-year-old head of the newly-named Ambience D'Arcy. With DMB&B picking up a 51 per cent stake in the agency, its capitalised billings are straightaway going to shoot up from Rs 66 crore last year to Rs 106 crore-thanks to the Whisper and Vicks accounts it has landed from Madison. Ambience's status in the pecking order-last year, at No. 17, it was a rung below Madison-could jump up to No. 13. And as it moves into its thirteenth year of operations. Says Kurien: ''We believed in giving ourselves time to create a product on our own which was respected, and we have reached that stage today.''

Sure. But how does Ambience tackle the issue of media-buying? Between its 13 clients, Ambience does not buy the media for 4 of them. Unfortunately, for Kurien, they are the biggies: P&G, Godrej, Marico, and Lakme. While it is a creative hotshop, Ambience is not a media-buying hotshop. Admits Kurien: ''I have always been interested in creative advertising. I am not in the least bit interested in rushing ahead and setting up an AOR now. It will all depend on what DMB&B wants to do.'' And with DMB&B opting for Madison's services for media-buying, it may lead to a tie-up between the two-again. The ambience is just right.

MEDIA-BUYING. Madison's USP is not its creative executions alone; if the agency is a force to be reckoned with, thank its media-buying strengths. The Madison Agency Of Record (Madison AOR) has 5 hot-shot clients-BPL, Coca-Cola, Godrej, P&G, and Tata Tea-and billings of Rs 200 crore-150 per cent higher than Madison's capitalised billings. Balsara set up the first AOR in the country in 1993; today it is one of the Top Two media-buying houses, along with Carat India.

Sums up Adi Godrej, 54, Managing Director, Godrej Soaps: ''Their main strength today is in media, where they are still doing well by retaining big accounts. This is going to help the agency continue to do well despite these short-term setbacks.'' In fact, in early June, 1999, a visibly-relieved Balsara announced that P&G had appointed Madison AOR for its spectrum of media-buying as opposed to just TV earlier. Says Enterprise's Agarwal: ''Madison AOR has built a good niche in media, where it is giving some of the biggest agencies a run for their money.'' For instance, in 1996, Madison AOR grabbed the Coke media-buying account from Ammirati Puris Lintas.

Balsara now wants to unbundle the Madison AOR division into a separate company. It is far from revolutionary-Ammirati Puris Lintas and McCann Erickson have already separated media from their creative and client-servicing functions-but makes sense. For one, Balsara will then have the option of tying up with 2 agencies, one strong in media and the other in creative. Crucially, although the alliance with DMB&B is over, 2 of Madison's biggest media-buying clients-Coke and P&G-are DMB&B accounts.

Both companies, claims Balsara, have emphasised that they will continue to deal with Madison AOR despite the DMB&B de-alignment. DMB&B itself seems to have no problems with the arrangement. Points out Garry Titterton, 41, President, DMB&B Asia-Pacific: ''In most parts of the world, media-buying is handled by one agency, and strategy, client-servicing, and creative is executed through another. So, we will not review the relationship in media-buying operations in the short term. Sam has done a good job.''

But what about Ambience, which, in any case, is not known for its strengths in media-buying (see box)? Shrugs Ashok Kurien, 49, CEO, Ambience: ''I never really was turned on by media.'' Could Balsara be looking at a tie-up with DMB&B for media-buying? While both DMB&B and Balsara refused to comment on the matter, the marked absence of bad blood over their recent break-up could be a portent for another reunion.

Enterprise's Agarwal puts it bluntly: ''For advertising, Balsara will need to seek a partnership.'' As partnerships with international agencies are de rigueur, it is right on top of Balsara's agenda. All he says is that he is ''talking around.'' As it happens, there are still a few international majors who are yet to forge ties with agencies in India-like Brann Worldwide, TMP Worldwide, and Carlson Marketing Group.

More interesting, some better-known names with Indian alliances are re-shopping for partners. They include Bozell, ddb Needham, Bates, and BBDO. But tie-ups do not happen overnight, and Balsara will also need to chase new business with a vengeance. Madison has had few eggs-less than half a dozen, really-left in its basket: Godrej, Blue Star, Philips (domestic appliances), Allied Domecq, and Global Trust Bank.

Avers Balsara: ''We must accept that we have to go out and get new business, and not just sit back and think about it.'' Strangely, no one at Madison knows how. Admits Balsara: ''We never go out and make a cold call-never. If somebody calls us, we don't have a ready presentation or a brochure.'' So, in April, 1999, Balsara hired an accounts director from the Mudra Group. Says Balsara: ''That was my first structural response to what's happened. I guess the kind of growth-rates we registered made us complacent. Obviously, we now have to re-orchestrate the direction we initially set for doing business.''

Last month, Madison got itself 3 new accounts albeit small ones: Sara Lee Bakery India (Nutrine), Ajanta Pharma (Pinkoo gripe water and Trimol analgesic), and Consolidated Coffee (Rich Cafe). As Balsara tries to chase the biggies, the absence of a partner will hurt. Avers Goutam Rakshit, 49, Managing Director, Advertising Avenues: ''Sam's energy is what is going to make Madison successful.'' Well, as he tries to resurrect Madison in the days ahead, Sam is going to have to draw on every possible bit of it.