The interview was originally published in Storyboard 18.
Dentsu X CEO Sujata Dwibedy says advertisers are consolidating agency mandates, reallocating up to 30% of television budgets to CTV and exploring ChatGPT advertising, although spending on the AI platform remains limited.
Dentsu has secured over Rs 1,200 crore worth of new business since January 2026, driven by a combination of new account wins and the expansion of existing mandates across its network, according to Sujata Dwibedy, CEO, dentsu X.
The growth comes as large advertisers increasingly consolidate media, creative, commerce and performance marketing requirements under integrated agency partnerships, even as pricing pressures continue across the advertising industry.
In an exclusive interaction with Storyboard18, Dwibedy said the agency group is also experimenting with advertising on ChatGPT across categories including FMCG and BFSI, although meaningful budget allocations are yet to materialise.
Meanwhile, connected television (CTV) is beginning to draw spending directly from linear television, with advertisers typically allocating 10–20% of their TV budgets to the medium. Among digitally mature brands, particularly in automotive and BFSI, the proportion can reach 20–30%.
Dwibedy also discussed the changing economics of media planning, the rise of creator-led performance marketing through dentsu's Results in a Box proposition, festive advertising trends and why traditional reach-based metrics are becoming less relevant for Gen Z audiences.
Edited excerpts:
Dentsu X has reported strong new business momentum. How has the agency performed in 2026, and is growth coming from new accounts or existing clients expanding their mandates?
Our growth story this year has been driven by the strength of the group. It is not just about completely new account wins but also horizontal expansion within the dentsu ecosystem.
From January until now, we have won more than Rs 1,200 crore worth of new business. A significant part of that has come from horizontal expansion, alongside some large marquee account wins.
Our proposition of One Dentsu brings together media, CXM, creative, data, technology, commerce, performance marketing and consulting capabilities. Rather than operating through disconnected agency silos, we want clients to experience the collective strength of the network through one integrated partner.
This Media++ focus, operational standardisation and client-centric approach have contributed to our growth.
Are advertisers consolidating media and digital mandates under fewer agencies? Has that intensified pressure on agency fees?
Clients are increasingly looking for consolidated partners. Interestingly, this takes us back almost 20 years, when integrated mandates were common.
Since late last year, we have seen more advertisers wanting to work with one agency rather than multiple smaller partners. It improves productivity, saves time and allows the agency to become more embedded in the client's growth agenda.
We generally participate in pitches as One Dentsu rather than dentsu X alone, except in certain global mandates. More than 60–70% of our business comes from all-India accounts.
There is definitely pressure on fees and commissions. It is an industry-wide challenge. Some agency holding companies have started offering extremely low fees, which has further intensified pricing pressure.
Macroeconomic pressures, including higher input costs across advertiser categories, are also affecting marketing investments and, consequently, agency remuneration.
Is CTV now taking actual budgets away from linear television? What proportion of TV spending is being redirected?
CTV in India has crossed the experimental stage. Large advertisers are no longer necessarily treating it as an incremental channel. Increasingly, they are reallocating television budgets towards CTV.
Typically, around 10–20% of TV budgets are being allocated to CTV. Among digitally mature brands, particularly in automotive and BFSI, that can increase to 20–30%.
Automotive, BFSI, e-commerce, electronics and D2C brands are leading this transition.
Linear television remains important for mass reach, but CTV offers better audience targeting, addressability and measurement.
Planning is also becoming screen-agnostic. Advertisers are evaluating video platforms based on reach, precision targeting and measurable outcomes rather than treating television and CTV as entirely separate channels.
With CTV inventory commanding higher rates, are advertisers getting enough returns to justify the premium?
I wouldn't say every premium is justified.
Some of the highest CPMs are associated with impact properties, including IPL, KBC and large reality shows, where attention and reach are significant.
But CTV delivers more than reach. It offers audience intelligence, incremental reach, frequency management, attribution and the ability to optimise campaigns in real time.
For categories targeting urban and affluent consumers, those capabilities can justify a premium over linear television.
The conversation ultimately needs to move towards incremental business impact and return on investment.
How is festive advertising spending shaping up in 2026, and which platforms are attracting incremental budgets?
We expect festive advertising spending to grow around 13–17% over 2025, potentially reaching 20%.
However, the incremental spending is not necessarily going towards traditional television or print. Much of the growth is going to platforms closer to consumer intent and conversion.
Retail media and quick commerce are attracting significant attention because brands can reach consumers close to the point of purchase.
CTV, digital video and creator-led platforms are also gaining share.
Linear television remains important for mass reach, particularly sports, but measurement challenges have made advertisers more cautious about evaluating campaign delivery.
Print continues to attract festive advertising because of its credibility and consumer response, including from e-commerce and retail brands.
Overall, spending is migrating from traditional reach and awareness towards intent, consideration and conversion.
Are nano-creators and UGC increasingly becoming part of performance marketing rather than standalone influencer campaigns?
Absolutely. We have been seeing this shift for some time, and it is an area where we have invested significantly.
Through Results in a Box, we are bringing creator-led communication and performance marketing closer together.
We have already started working on end-to-end creator-to-performance models with several BFSI clients.
We have also developed technology dashboards that help identify which creators work for particular brands, how their communication performs and where campaign corrections are needed.
Consumers often relate more closely to people they regularly follow than to conventional brand messaging. That familiarity can support conversion.
Creator marketing was already contributing to performance outcomes. The difference now is that we are making the process more scientific and measurable.
Is dentsu working with OpenAI on ChatGPT advertising? Are clients allocating meaningful budgets to the platform?
We are partners with OpenAI, and our engagement is strong. But it is still very early.
Advertiser interest in ChatGPT is significantly ahead of actual advertising expenditure.
We have started experimenting with clients in FMCG and BFSI, and are exploring opportunities across automotive, travel, technology, education and e-commerce.
The opportunity is different from traditional search or social advertising because consumers are actively exploring options, evaluating trade-offs and making decisions.
However, budgets are not meaningful yet. Clients are investing to experiment, and the platform is still expensive.
If the results demonstrate value, we could see budgets moving from Google Search, performance marketing and other lower-funnel digital channels.
But it is too early to quantify that shift.
How is Gen Z changing media planning? Would a Rs 100 crore campaign targeting this audience require a fundamentally different allocation?
Gen Z is an extremely technology-savvy, value-conscious and socially responsible audience. Generic advertising is unlikely to work with them.
Communication needs to be customised, personalised and genuinely relevant.
AI will become one of the important areas of investment, followed by social platforms, where much of their product discovery takes place.
We have seen momentum for FMCG and beauty brands targeting younger consumers through Instagram and platforms such as Snapchat.
But their digital behaviour extends beyond mainstream social platforms. Discord, Reddit and other communities are increasingly important.
What works today may not necessarily work two months from now because their platform preferences and behaviours are changing rapidly.
Is the industry's obsession with reach becoming counterproductive, particularly when targeting Gen Z?
Reach is becoming less useful as the primary objective, not just for Gen Z but across several sectors.
We are living in an algorithmic world where consumer signals, addressability and conversion matter enormously.
Reach still needs to be measured, but it cannot be the main target.
The real question is whether brands are creating meaningful engagement that leads to measurable outcomes.
Ultimately, media planning needs to be driven by business results rather than reach alone.
