London-based advertising agency WPP is eager to make acquisitions in India but heightened venture capitalists’ interest is making any such deal expensive. [via Economic Times] “Whenever we look at companies to acquire, we find that venture capitalists are already invested or are looking at investing. Investment amounts range from $3 million to $6 million and this makes it difficult for us to explore these options,” according to WPP’s country manager (India) Ranjan Kapur.
Then there is the difference in the pattern of media growth in India and overseas. “Globally, interactive communication forms 8-9% of the advertising budget, but in India the spend is just about 1-2%,” Mark Read, WPP’s director of strategy. “This is because the traditional forms of media such as television and print in India are still growing, while globally they are seeing a decline.”
Despite inflated prices for target companies and the difference in media growth areas, India’s strong GDP growth, investment in infrastructure and the growing offshoring of pre-media work is expected to keep India on the WPP radar.