Nov 17: Advertising’s Identity Crisis, SpiceJet Hanging On

SRK just got a 55-storey commercial tower in Dubai named after him. The tower, which is called Shahrukhz by Danube, only for the lack of better options we hope, will even feature a life-size statue of SRK in his signature arms-wide-open pose at the entrance. Honestly, that’s bad ass. But seems like when SRK is involved, aise bade bade logon ke liye aisi choti choti cheezen hoti rehti hain.

Now, let’s get into the Dispatch! 🚀

Today’s reading time is 7 mins.

For decades, large advertising networks dominated the industry with big ideas, big budgets and even bigger reputations. But that era is rapidly dissolving. Legacy agencies are now battling falling valuations, shrinking margins, and constant restructuring. Their traditional model, built on long-term retainers, layered hierarchies, and brand-building campaigns - simply cannot keep pace with the speed at which brands operate today. What once felt like stability now looks like stagnation.

Performance Marketing Has Taken Over: Today, marketing decisions revolve around dashboards, data streams, and measurable outputs. Brands are less interested in award-winning films and more focused on conversions, cost-per-click, and return on ad spend. This shift has pushed performance-driven firms and digital-first players to the forefront. They offer what modern businesses want: real-time optimisation, rapid experimentation, and transparent metrics. As budgets move towards performance, big networks find themselves losing ground in areas where they once had complete dominance.

The New Kings: The biggest beneficiaries of this shift are agile, independent agencies and tech-enabled creative firms. Unburdened by legacy structures, they produce high-volume content tailored for multi-platform consumption. These agencies excel at quick turnarounds and cost-efficient delivery, making them the preferred partners for startups and new-age brands. Their blend of creativity, analytics, and speed reflects exactly what the market now demands, constant content at scale backed by measurable impact.

Why The Old Guard Is Struggling To Adapt: Legacy networks face an identity crisis. Their size, once an advantage, now slows them down. Multi-layered approval systems, siloed teams, and outdated pricing models make it hard to compete with nimble players. Meanwhile, the pressure to merge creativity with data is mounting. But transformation is proving far more complicated than anticipated. Many networks are still figuring out how to integrate tech, analytics, and creative talent without diluting their strengths.

Attempts At Reinvention: To stay relevant, big networks are restructuring their operations and consolidating their creative, media, and digital divisions. Some are embracing AI tools to speed up production, while others are focusing on hybrid teams that blend storytelling with performance metrics. But progress remains uneven, and many agencies are stuck between preserving their heritage and evolving for the future.

Gems & Jewellery Exports Slump: India’s gems and jewellery exports dropped by ~31% in October, falling to USD 2.17 billion, according to GJEPC data. The decline is largely blamed on weak global demand, volatile bullion prices, and earlier US stocking ahead of tariffs. Exports of cut and polished diamonds dropped by almost 27%, while gold jewellery exports fell around 25%. Lab-grown diamond exports also suffered, compounding pressure on the sector.

Export Gains From US Tariff Rollback: Roughly USD 2.5–3 billion of Indian exports are set to benefit from recent US tariff exemptions, says Ajay Sahai of FIEO. The relief primarily favors agricultural and high-value food products, including coffee, cashew nuts, tea, and spices. These exemptions open up “space for premium, speciality, and value-added products,” according to Sahai.

How SpiceJet Is Hanging On: SpiceJet remains financially fragile: in Q1 FY26, it reported a loss of INR 238 crore, citing airspace restrictions and grounded aircraft. Around 40% of its fleet is grounded, and its domestic market share has shrunk to below 4%. To stay afloat, the airline raised INR 3,000 crore via a QIP and has begun reactivating grounded planes. However, high fixed costs from old leases, liabilities, and underutilisation stretch its recovery potential.

Russian Oil Imports: India remained the world’s second-largest buyer of Russian crude in October, importing about $2.9 billion worth. The surge comes despite fresh U.S. sanctions on Russian oil giants like Rosneft and Lukoil. Analysts say India is leveraging steep discounts on Russian oil, a shift made possible by Western restrictions on European buyers.

Google’s Big Bet In Andhra Pradesh: Google is expected to scale its investment in Andhra Pradesh beyond $15 billion over the next five years, according to CM N. Chandrababu Naidu. The company plans to build a major AI-driven data centre in Visakhapatnam, which would anchor a broader strategy to make the state a global data-centre hub. Naidu says this investment is just the beginning, hinting that Google could double its commitment over time.

JPMorgan Chase CEO Jamie Dimon has issued one of his sharpest warnings yet on the direction of the U.S. economy, arguing that a mix of excessive regulation, high taxation and anti-business policymaking could push America toward a slow-burn decline. His message: if the U.S. doesn’t fix these structural issues, the country could end up following Europe’s stagnation trajectory.

America Could Become Europe In 30 Years: Dimon argues that successive layers of regulation and escalating costs have slowly made U.S. cities and states less competitive. He says the country is burdening businesses with rules that both stifle innovation and push job creators to friendlier jurisdictions. While Europe remains prosperous, Dimon points out that it has suffered two decades of sluggish growth, warning that the U.S. could face a similar fate if it loses its competitive edge.

Businesses Are Voting With Their Feet: A major part of Dimon’s argument centers on the growing divide between business-friendly and business-hostile states. He notes that companies are rapidly shifting headquarters and operations out of high-tax, highly regulated cities into states like Florida, Texas, and Tennessee, which offer lower taxes, simpler rules and more predictable environments. According to him, this internal migration is a clear signal that policymakers in some major urban centers are ignoring economic realities while doubling down on policies that increase dependence on wealthy taxpayers, taxpayers who are leaving.

Warning For Progressive Leaders: Dimon also delivered a thinly veiled critique of progressive governance models, calling out the push for “free everything” free childcare, free buses, free services without considering how these will be funded.
He stresses that cities relying heavily on high-income earners cannot afford to drive them away through higher taxes, rising crime, and poor public services. His stance is clear: over-promising and overspending may win elections but weaken cities economically.

The Real Losers, Lower-Income Americans: While Dimon’s warning seems targeted at policymakers, he insists the consequences fall hardest on low-income communities, not corporations. Higher compliance costs, slow permitting, and excessive regulations raise consumer prices, limit job creation, and make it harder for small businesses to survive, ultimately hurting those with the least financial cushion.

Samsung’s AI Bet: Samsung is set to invest $310 billion over five years, largely to scale up its AI infrastructure, including memory chips and data centres. Part of the plan includes a new chip plant (Pyeongtaek) and regional AI data hubs. The move reflects Samsung’s push to gain a stronger foothold in the booming AI-compute market, driven by global demand.

OpenAI’s Billions To Microsoft: Leaked financial documents show that OpenAI paid Microsoft $494 million in 2024, and $866 million in the first three quarters of 2025. These payments stem from a revenue-sharing deal in which OpenAI gives Microsoft 20% of its income. Meanwhile, OpenAI’s compute (“inference”) costs have surged, suggesting it may be spending more on operational AI workloads than it earns.

What’s Going Wrong With The U.S. Economy: The U.S. job market is showing alarming weaknesses: several key sectors are cutting jobs, raising red flags about broader economic stability. Service-sector growth is stalling, and rising input costs, especially due to tariffs, are squeezing both hiring and profitability. Some analysts warn the country could face stagflation or deeper economic malaise if these trends persist.

Tariff Cuts On Essentials: Trump has reversed tariffs on over 200 imported food items, including coffee, bananas, beef, tomatoes, and orange juice, in a bid to ease rising grocery prices and voter anger. The exemptions, which take effect retroactively, mark a sharp pivot from his own previous tariff strategy. White House officials say the move is meant to tackle cost-of-living pressures, especially in battleground states.

AI Bubble Worries Among Startup Founders: Growing concerns around overvaluation and speculative funding are fueling anxiety in the AI startup world, according to interviews with founders. Replit CEO Amjad Masad says revenue growth is slowing, and some companies are scaling back their projections. But not all are panicking: Credo AI CEO Navrina Singh argues that investment in AI oversight and infrastructure is just the natural evolution of a new era.

Big Korean Bets After U.S.-Korea Trade Deal: Samsung Electronics and Hyundai Motor announced massive domestic investments after a recent U.S.-South Korea trade deal raised fears of capital flowing out of Korea. Samsung committed to 450 trillion won (~$310 billion) over five years to expand memory chip production and build AI-related infrastructure. Hyundai pledged 125.2 trillion won for 2026–2030 to boost R&D in robotics, AI, and green mobility.

Delhi Blast Fund Trail: Indian intelligence agencies have traced roughly ₹20 lakh in funding linked to a handler associated with the militant group Jaish-e-Mohammed in the wake of a car blast in Delhi. The discovery suggests possible external or extremist funding fueling terrorist operations in the capital. Agencies are investigating whether these funds played a role in facilitating the blast or other linked activities.

India Inc’s Freelance Push: Indian companies are aggressively hiring freelancers and independent contractors to remain agile and competitive. HR heads say this strategy helps reduce fixed costs while giving access to high-skill talent for short-term or specialised projects. With remote work now normalized, businesses are also building “gig-lead” silos to manage these external workers more effectively.

World Bank Funds & Bihar Polls: Pavan Varma of the Jan Suraaj party alleges that ₹14,000 crore of World Bank funding intended for development was diverted to finance the Bihar Assembly election. According to Varma, the funds were misused by political actors to influence voters rather than for pro-poor or infrastructure programmes. He claims the diversion reflects a growing trend of misuse of international aid during electoral cycles.

India-Russia Jet Gamble: HAL (India) and Russia’s UAC plan to co-produce the SJ-100 regional jet in India, marking a major push into commercial aircraft manufacturing. But industry observers remain skeptical: no Indian airline has committed to buying the jet yet, and there are questions around long-term maintenance, certification, and economics. The SJ-100 has a mixed track record, past reliability and cost issues could make it a hard sell in the competitive 100-seater market.

Women May Join Territorial Army Battalions: The Indian Army is reportedly considering inducting women into Territorial Army battalions, reportedly expanding beyond just officer roles. If approved, this would mark a historic change, allowing women to serve in TA infantry units, not just engineering or support roles. Advocates say the move could significantly boost gender diversity in India’s reserve forces and empower citizen-volunteers. 

THAT’S ALL FOR TODAY!

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