Saatchi & Saatchi doubles in size in five years—but agency model under strain as ROI obsession rises

Mint

26-06-2025

Mumbai: Creative agency Saatchi & Saatchi India has quietly doubled in overall scale and revenue size over the past five years, expanding headcount, winning marquee mandates and growing its digital arm nearly tenfold. But even as the agency rides a strong growth wave, chief executive officer (CEO) Paritosh Srivastava admits the broader industry is staring at some fundamental shifts—from broken revenue models and rising client demands to the slow erosion of creativity itself.
The year 2024 has been the best in the agency's history, Srivastava told Mint. 'We've won large mandates—Diageo, Skoda, Pampers, FedEx and Leela Hotels—and we now operate with over 400 people across Saatchi & Saatchi, BBH India and digital agency Saatchi Propagate," Srivastava said. The group's digital arm, acquired in 2019, has grown from a ₹4 crore operation to ₹40 crore in projected revenues for FY25.
While there is no formal industry ranking or audited revenue leaderboard for creative agencies in India, unlike media buying agencies, Saatchi competes with other top networks such as Ogilvy, Leo Burnett, McCann, DDB Mudra, FCB and Lowe Lintas.
Srivastava attributes much of this momentum to Publicis Groupe's Power of One model, where integrated teams from creative, digital, CRM, media, commerce and data work together under one unified mandate. 'Close to 80% of our wins are now Power of One. Clients don't want seven different agencies interpreting their brand in different ways. We're solving end-to-end."
But behind that integration lies the reality of a creative industry stretched thin. Margins are under pressure, campaign timelines are shrinking and budgets are splintered across platforms. Srivastava acknowledges that clients are more focused than ever on one thing: results.
'There's no ambiguity—measurableReturn on Investment (ROI) is the priority," he said. 'The advertising business has become serious. Clients are accountable for every rupee they spend and so are we. Awards are great, but we exist to drive business outcomes."
There's no universal benchmark for ROI in advertising since it varies based on parameters such as brand, category, campaign objective, and platform. Yet firms like Ogilvy, McCann, Leo Burnett and FCB have traditionally led in both scale and awards tally.
Identity rethink
Srivastava believes this shift has forced agencies to rethink their very identity. 'The retainer and commission model is under stress. The only way forward is to align with clients on key performance indicators (KPIs) and take shared responsibility. If agencies want to stay relevant, they have to stop thinking in silos—creative, media, strategy—and start owning the full funnel."
That shift has strategic implications. Saatchi, Srivastava said, now operates one of the largest strategy teams among Indian creative agencies. 'Strategy is no longer a support function—it's the arrowhead. It guides creative, informs effectiveness and brings the client's business reality into the room."
Yet, the big question remains—what about creativity itself? In a world dominated by dashboards, performance metrics and templatized storytelling, where does the bold idea fit in?
'It's true," Srivastava admits. 'We're living in an age of sameness. There's too much noise. Brands are struggling to stand out. That's why belief systems matter—BBH's 'Zag when others Zig' or Saatchi's 'Nothing is Impossible' aren't taglines. They're creative operating systems that help us resist the pull toward mediocrity."
Still, many in the industry are concerned that creativity is being overshadowed. 'There's a risk," he said. 'But creativity is no longer just about a 60-second film. It's about interpreting data in a fresh way, building loyalty and driving commerce. It has evolved, not disappeared."
On talent, the cracks are deeper. The advertising industry, unlike IT or consulting, has historically underinvested in long-term pipeline building. 'We don't have a ready talent base. So we've started building our own," Srivastava said. The group has delivered over 1,600 hours of training in 2024 and now recruits actively from smaller towns and interdisciplinary backgrounds—science, statistics, anthropology.
The employee fix
He's candid about what's broken: 'As long as agencies keep hiring at ₹5-6 lakh, they'll keep struggling. You push that to ₹10-15 lakh, and the quality transforms overnight. But we need to convince clients to pay for the talent they expect."
Srivastava also pointed to industry image problems. 'We haven't pitched advertising well to the next generation. It offers energy, challenge, impact—yet it's not considered sexy anymore. We need to fix that."
The agency's certification as a 'Great Place to Work' is one step in that direction. 'We're the only large creative agency in India with that badge. That means something," he said. Attrition among fresh recruits remains around 30%, but drops sharply after three years, he added.
Asked whether legacy agency brands still matter in an era dominated by startups, data, and performance-driven storytelling, Srivastava was emphatic. 'They'll matter more. As data and tech get democratized, what will set brands apart is trust, consistency and creativity. That's what legacy agencies—if they adapt—can still deliver best."