Nearly 85 per cent of the media spends in the UK are audited. In India, the figure for audited spends may be under five per cent.
Together, Mumbai-based media audit company Spatial Access Solutions and the UK -based Fairbrother Lenz Eley are set to change that.
The 14-month-old company, Spatial Access has tied up with FLE, one of the leading media auditing and consultancy companies in the world that was set up in 1990.
"For the time being, it's a partnership and there is no equity participation," says Meenakshi Madhvani, managing partner SAS.
FLE works with advertisers in nearly 56 markets and has advised clients on media spends worth $4 billion. The company's director and partner, Phil Welch, says that the decision to enter India was pushed by client demand.
"Already four or five of our major international clients are present in India in sectors spanning the pharmaceuticals, leisure, beverages and telecommunications businesses. They have invited us as most of them are looking at media expenditures in India," he says.
Welch has been visiting India for the last five years but says that the company's India foray could not have been better timed. "The focus on media in India is taking off."
Adds Madhvani: "Besides media spends in India are growing." She believes that media fragmentation is causing media inflation.
"For instance, there are five kids' channels today. As the viewership gets divided, the cost of reaching 100 kids obviously goes up," she explains.
The popular belief in India is that clients and ad agencies resist audits and there is no scope for this business. Madhvani disproves that. SAS has roped in 24 clients in the past one year and audited spends worth Rs 400 crore (Rs 4 billion).
The partnership between the two companies will allow FLE to offer its clients media audit services in India through SAS. On the other hand, Spatial Access will be able to utilise FLE's growing global network for Indian clients looking for international auditing and consultancy.
Currently, Spatial Access is working with clients in six cities -- Mumbai, Pune, Delhi, Ahmedabad, Chennai and Bangalore.
Madhvani says that in India, "media is still seen as an expenditure and not as an investment. We need to change that." Adds Welch: "We're confident that working with our Indian partners will help clients improve the ROI on their media budgets."
FLE has also forged an alliance with Media Management Inc to enter the US market. An office in South Africa is on the cards. "We are getting the main theatres of media covered," remarks Welch.
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