Publicis Groupe [EURONEXT Paris: FR0000130577] today announced the acquisition of Convonix, one of India’s leading Digital Marketing Consulting firms based in Mumbai. Convonix will align with Starcom MediaVest Group (SMG) in India which makes the combination amongst the largest Digital Marketing companies in India. This transaction brings together two complementary organisations - Convonix's strength in Search, Social and Analytics combined with Starcom’s strength in Media strategy creates a unique offering for the burgeoning digital marketing space in India and expands Convonix’s geographical presence in India to Delhi, Bangalore and Chennai besides Mumbai. This news follows a number of recent acquisitions announced by Publicis Groupe in India and fortifies its position as India’s largest digital marketing operation.
Founded in 2003, Convonix has evolved from being the 1st Search Engine Optimization organization in India to becoming an Integrated Digital Marketing Solutions provider, and currently employs over 200 internet marketing specialists serving clients such as Taj Hotels, Reliance Industries, Kotak Mahindra Group, Club Mahindra, Kodak, Aditya Birla Group among others. Convonix has a strong international footprint with over 60% of its business coming from overseas. Convonix has also recently developed a proprietary in-house brand monitoring and social listening platform called IrisTrack which enables clients to gather market insight on their products and competitors and also engage customers online to improve their customer service.
The three founding members; Vishal Sampat, CEO; Sarfaraz Khimani, co-COO; and Pallav Jain, co-COO, will continue to lead the agency. Convonix will sit within SMG and will operate as SMG Convonix, with two market-facing brands: SMG Digital and Convonix.
“As the first SEO organisation in India, Convonix has continued to innovate and build the very best digital capability whilst being highly respected for its ability to recruit the best talent from universities each year, and transform them into digital advertising experts through a rigorous training program,” said Laura Desmond, Global Chief Executive Officer for Starcom MediaVest Group. She continues: “combined with our existing talent in the market, this deal strengthens our offering to ensure we are the market leaders in digital.”
Year on year, Convonix has increased revenues on average 66 percent since 2008. According to the latest ZenithOptimedia adspend forecast, Search Marketing continues to expand rapidly in India and is forecast to increase 35% in the region during 2013, and more than 70% in the next two years.
Vishal Sampat, CEO for Convonix comments: “We have built our reputation by focusing on talent, training, technology and performance, and doing so has enabled us to rapidly evolve with the consumer. Aligning with SMG gives us global scale and a more powerful face to the market which we can leverage to constantly improve our offering and give our clients the best tools and solutions available.”
The acquisition of Convonix is a testament to Publicis Groupe’s strategic commitment to expanding its operations across India, with the ambitious goal of doubling its size in India between 2010 and 2015.
Srikant Sastri, VivaKi Country Chair for India who is presiding over the acquisition and transition of Convonix adds: “After the Convonix acquisition, we are now clearly the digital marketing leaders in India, ahead of any other global network. We are positive that this acquisition will set the tone for our next phase of digital pre-eminence both in terms of expertise and revenue and we are continuing to explore other agencies that can help us capitalize on the outstanding potential of the digital marketplace in India.”