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How the World’s Top Ad Agencies Colluded to Fix Prices in India

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Internal communications revealed that major global advertising firms secretly coordinated to rig ad prices in India’s vast market, undermining competition and client choice.

In October 2023, Omnicom Media’s India CEO, Kartik Sharma, expressed frustration in a WhatsApp group after a rival agency attempted to poach a client by offering lower rates—violating an industry-wide agreement on pricing.

The WhatsApp group, formed in August 2023 and including top executives from WPP’s GroupM, Omnicom Media, IPG Mediabrands, Publicis, Havas Media, Japan’s Dentsu, and India’s Madison World, discussed coordinating pricing strategies and responses to clients. According to evidence reviewed by Reuters and obtained from India’s Competition Commission (CCI), the agencies agreed not to undercut each other, colluded with broadcasters to penalize non-compliant firms, and coordinated financial terms for at least four major Indian clients.

The cartel was facilitated by two industry bodies—the Advertising Agencies Association of India (AAAI) and the Indian Broadcasting & Digital Foundation (IBDF)—both led by senior executives from WPP Media India and Reliance-Disney respectively. The AAAI circulated guidelines requiring agencies to charge minimum commissions on digital and traditional ads and agreed with broadcasters not to offer unilateral discounts.

The CCI dossier revealed discussions about client pitches involving firms like Swiggy, Cipla, Meesho, and Kshema Insurance. For example, the AAAI arranged a Zoom call to unify the industry’s stance on rebates for Swiggy’s ad campaign. A Dentsu executive noted on WhatsApp that the agencies would retain 30% commission and pass back 70% to clients as rebates.

In August 2023, AAAI’s president urged broadcasters like Walt Disney to withhold business from agencies breaking the cartel agreements. Tensions rose when Omnicom Media learned that ITW Consulting had bypassed these pacts with a direct deal on Disney’s Hotstar streaming platform during the Cricket World Cup.

Despite these revelations, the foreign headquarters of the involved agencies have not confirmed awareness of the collusion. Dentsu India disclosed its involvement under the CCI’s leniency program aimed at reforming industry practices from within. Other agencies declined comment, and the regulator has yet to conclude its probe.

This investigation adds to ongoing scrutiny of ad agency practices globally, with similar probes underway in the U.S. following suspicions of anti-competitive behavior.

Reddit Rolls Out AI-Powered Ad Tools to Boost Brand Engagement

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Reddit has introduced two new artificial intelligence-driven advertising tools designed to help brands engage more effectively with its massive user base by tapping into active community discussions, the company announced on Monday.

The first tool, “Reddit Insights powered by Community Intelligence,” gives marketers real-time analytics by identifying trending topics, sentiment, and audience behavior on the platform. It aims to support advertisers in campaign planning and idea testing with a better understanding of Reddit’s niche and topic-specific communities.

The second feature, “Conversation Summary Add-ons,” allows brands to display curated “positive” user comments directly under their ads—essentially integrating community endorsement to improve ad relevance and trust.

Reddit is among a growing group of digital platforms—including Snap and Pinterest—that are investing in AI tools to better target ads and retain marketing spend amid broader economic uncertainties. According to the company, France’s Publicis Groupe is already piloting Reddit Insights, with a broader rollout to ad agencies planned for July.

The move follows WPP Media’s recent downgrade of global ad revenue growth expectations—from 7.7% to 6%—citing risks linked to shifting U.S. trade policies. In response, marketers are increasingly seeking flexible ad models and AI-powered optimization tools.

Despite these challenges, Reddit has shown strong momentum. In May, the company issued a second-quarter revenue forecast that beat analyst expectations, although CEO Steve Huffman warned of potential traffic disruptions due to changes in Google search behavior.

Earlier in March, Reddit also released enhanced content moderation and analytics features to help community managers enforce platform rules and improve content performance insights.

Publicis Acquires Lotame, Doubles Consumer Reach to 4 Billion

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Publicis, the French advertising powerhouse, has announced an agreement to acquire data and ID technology group Lotame, with plans to integrate it into its targeted marketing division, Epsilon. This acquisition is set to significantly enhance Publicis’ technological capabilities in the ever-evolving digital advertising sector, effectively doubling its individual consumer profiles to 4 billion from 2.3 billion.

While the financial terms of the deal were not disclosed, Publicis CEO Arthur Sadoun emphasized the strategic importance of data and technology, noting that the company has invested $1.5 billion in these areas over the past six months. In addition, Publicis plans to allocate between 800 million and 900 million euros ($864.6-$972.6 million) this year for future acquisitions in the technology and proprietary data sectors.

“AI is nothing without data,” Sadoun highlighted, showcasing the power of their 25,000 engineers and CoreAI system. This technology allows Publicis to track individual digital footprints, predicting and influencing consumer behavior across all screens and platforms globally. The system can even identify financial strain in consumers, instantly adjusting advertising to promote budget-friendly alternatives.

The acquisition of Lotame will enable Publicis to engage with 91% of all adult internet users, further solidifying its position as a leader in the digital advertising space.

The acquisition comes after a decade-long, 12 billion euro transformation that has seen Publicis leverage AI and big data to become the world’s largest advertising firm. With competitors like Omnicom and Interpublic set to merge, creating a $25 billion revenue entity, Publicis is keen to stay ahead in the competitive advertising landscape.

As personalisation becomes a growing priority for clients, Publicis is poised to continue its market growth, with an organic growth forecast of 4%-5% for 2024. In contrast, British rival WPP is expecting flat revenue and profit growth, with its stock hitting a four-year low after disappointing results.