Interspace Communication Revolutionizes Media Buying with Integrated Advertising Solutions

Vikas Nowal - Interspace Communication CEO and Founder

The Indian media and advertising industry has long been dominated by multinational giants like WPP, Omnicom, and Publicis Groupe, with agencies operating in rigid silos—creative, media, digital, out-of-home, and activation all functioning independently. Against this backdrop, Vikas Nowal, CEO and founder of Interspace Communication, has built a profitable, zero-debt media agency that's challenging the status quo.

Starting in 2013 at age 32, Nowal has grown Interspace from a single-office operation to a full-service media powerhouse, maintaining client relationships averaging 7-8 years while competing against industry stalwarts. His philosophy? "We are building profit centers, not cost centers."

This is the story of how a small-town boy from Pilani, Rajasthan, disrupted the Indian advertising landscape by doing what the giants wouldn't: integrating media services and putting client needs first.

📊 Key Industry Challenge

The media industry suffers from a "zero differentiator" problem where most agencies offer similar services in siloed structures. Interspace's integrated approach solves this by delivering complete media solutions rather than fragmented services.

The Problem: Fragmented Media Landscape

The traditional advertising model has been broken for years. Large network agencies have created artificial divisions between creative, media planning, digital, out-of-home, and activation services. For clients, this means dealing with multiple agencies, conflicting strategies, and budget infighting.

"What they do is they just bucket all these services that a client has to go and pick and choose every time," Nowal explains. "Every vertical is fighting for their share of spends within the client budgets."

This fragmentation creates several critical issues:

  • Communication Breakdown: Multiple agencies mean multiple account managers, conflicting strategies, and misaligned objectives
  • Budget Wars: Different agency verticals compete for client dollars rather than collaborating
  • Strategic Incoherence: Campaigns lack unified messaging across different media channels
  • Efficiency Loss: Clients spend more time coordinating agencies than focusing on business results

The industry's consolidation around multinational giants has only exacerbated these problems. As Nowal notes, "In an industry which is completely driven by stalwarts... for someone to take entrepreneur plunge is not at all a very easy task."

The Market Opportunity

While the traditional agencies focused on maintaining their siloed structures, Nowal identified a crucial gap: clients needed integrated media solutions that could deliver results faster and more efficiently than the bureaucratic network agencies.

"That is one opportunity that we saw and that we started to work towards. Also like I said there's a certain framework most of the agencies they look at they have certain parameters in terms of how much should the profitability be who which media owner should they be working with so there's already too many predefined parameters that one has to work over here."

— Vikas Nowal, CEO and Founder, Interspace Communication

The Solution: Integrated Media Approach

Interspace Communication's revolutionary approach centers on client-first media solutions. Instead of selling predefined services, they analyze brand communication challenges and recommend optimal media mixes based on category, industry, competition, product, and geography.

"We do not go as an out of home agency or as a mainline media agency. What we go to them is that there are certain brand product communication challenges that could be solved through media communication and this is what we bring on depending upon the category depending upon the industry depending upon the competition on the product on the geography we figure out a media mix of where would the television take a lead or a print would take a lead or OTT would take a lead or an out of home would take a lead and how all other media offerings could complement."

Strategic Expansion: The Profit Center Philosophy

Unlike many startups that rush to scale, Nowal adopted a methodical approach to growth. Interspace's expansion strategy focused on building sustainable profit centers rather than rapid, uncontrolled growth.

📈 Strategic Growth Timeline

  • 2013: Started with Mumbai office, achieved profitability in 6 months
  • 2014: Expanded to Hyderabad, another 6 months to profitability
  • 2015: Launched Bangalore operations, followed by Kolkata
  • 2016: Opened Delhi office (2.5 years after founding)
  • 2016-2020: Added retail marketing, trade marketing, and activation services
  • 2021-Present: Full-service media agency with integrated solutions

"So when you were to look at last 12 years we have been fighting against all these stalwarts. All these stalwarts or the multinational agency they come with a with an aura they come with a legacy of calling themselves as a global agency or a network agency or agency which established what 25 30 years back we had none of it we didn't have any name like a B Pande or a Sam Balsara we not have any legacy we did not have deep pockets as all these people have but one thing that they failed which allowed entrepreneurs like me many other enter into this business is that those people they never invested back into the business."

Talent Strategy: Building from Scratch

Interspace took a contrarian approach to talent acquisition. Instead of poaching experienced professionals from competing agencies, they focused on hiring and developing young talent fresh from college.

"So what we did is we in started and we invested in the younger talent which is right out of college. So most of our colleagues are management graduates that we hire in during the campus placement or right after their first stint is when we basically have them on board and the good thing is that all these people because they were not from their domain they never wanted to go back to some other agencies."

This approach has several advantages:

  • Lower Attrition: Younger talent is less likely to be poached by competitors
  • Cultural Fit: Building company culture from the ground up
  • Fresh Perspective: No baggage from traditional agency practices
  • Loyalty: Higher retention rates and stronger commitment to company vision

Implementation: Building the Business

Interspace's success wasn't built overnight. Nowal's approach combined strategic patience with operational discipline. The company maintained a zero-debt policy, focusing on profitability rather than rapid expansion.

Financial Discipline

Unlike many entrepreneurs who chase funding and valuation, Nowal maintained strict financial control:

💡 Financial Wisdom

"We are a completely profitable setup. We are a zero debt. We never borrowed loans from anyone or neither a bank or NBFC because we knew that the moment you borrow loan or take loan from a bank you have to repay and when you have to repay you don't have to pay the X amount you have to pay X plus Y. So you got to work harder and a lot of your earnings would get into consumed into that Y part of it."

This financial discipline allowed Interspace to weather challenges like COVID-19 without compromising their business model or resorting to desperate measures.

Service Evolution

The company's service offerings evolved organically based on market needs and client requirements:

  • Years 1-2: Out-of-home media specialization
  • Years 2-3: Added retail marketing and trade solutions
  • Years 3-5: Expanded into activation and experiential marketing
  • Years 6-12: Full-service media agency integration

"So when we started back in 2013, we started as an out-of-home agency and we were not driven by. So what we did was at that point in time I took a basic learning of how the earlier business houses used to build business which is take one step at a time, one step at a time, one agent at a time."

Results: Sustainable Success

Twelve years after founding, Interspace Communication stands as a testament to sustainable entrepreneurship in the media industry. The company has achieved remarkable metrics that speak to their approach:

📊 Key Achievements

  • 12 Years of profitable operation without debt
  • 7-8 Year Average client retention rate
  • Zero Debt business model with complete ownership
  • Multi-Office Presence across major Indian cities
  • Full-Service Capabilities from out-of-home to national campaigns

Client Retention Success

Perhaps the most impressive metric is Interspace's client retention rate. In an industry known for agency hopping and short-term relationships, maintaining clients for 7-8 years on average is extraordinary.

"And that's only because every time we have to deliver there was legacy or a name or a network not solving any purpose for us but it was a plain simple how much are we able to deliver on the efficiency and the efficacy of a particular campaign it worked for us."

Competitive Advantage

Interspace has successfully competed against multinational giants by leveraging their agility and integrated approach:

  • Speed: Faster decision-making and campaign execution
  • Integration: Unified strategy across all media channels
  • Client Focus: Solutions based on needs rather than predefined services
  • Cost Efficiency: Lower overhead without legacy infrastructure

Industry Evolution and Future Vision

Nowal has witnessed firsthand the dramatic transformation of India's media landscape. From traditional television and print dominance to today's fragmented digital ecosystem, the industry has undergone radical changes.

Media Landscape Transformation

The advertising industry has evolved dramatically over the past three decades:

🔄 Media Evolution

Then: 3 main offerings (television, print, radio)
Now: 20+ media options including digital, OTT, social media, out-of-home, experiential, shopper marketing, rural marketing, and more

"Earlier predominantly the media mix was television print radio little bit of cinema a little bit of out-of-home right. So if you were to look at from three offerings nowadays like 20 offerings, right? So this is what has evolved and hence we also evolved ourselves."

Political Marketing Revolution

Nowal has observed the professionalization of political advertising in India, noting that election campaigns now resemble major brand launches:

"The total political budget right general election budget by all political parties and certain government entities put together their entire election budget was slightly close to a lakh of crore. Now a major chunk of it was basically the advertising bit which comes as the."

This has created new opportunities for media agencies that understand how to execute integrated campaigns across multiple channels.

Future of Media and Technology

Looking ahead, Nowal sees technology continuing to transform the industry, with AI playing an increasingly important role:

🔮 Future Trends

AI Impact: Reduced production costs, faster turnaround times, and automated creative adaptation
Media Fragmentation: Continued growth of digital channels and personalized advertising
Measurement Focus: Greater emphasis on ROI and performance metrics
Integration Demand: Growing need for unified media solutions

Key Takeaways for Entrepreneurs

Vikas Nowal's journey offers several valuable lessons for aspiring entrepreneurs:

Strategic Patience

"Rome was not built in a day and so to say a good setup business entity also takes a minimum of a decade to establish itself in terms of profit in terms of people in terms of culture. profits do come in within three years. But culture and building an ecosystem takes as much time as a decade."

Build Profit Centers, Not Cost Centers

The focus on profitability rather than growth at all costs has been central to Interspace's success. Each expansion was carefully planned to ensure it would contribute positively to the bottom line.

Invest in People

By hiring young talent and developing them internally, Interspace built a loyal team aligned with the company's vision and culture.

Adapt and Evolve

The company's ability to evolve with the changing media landscape—from out-of-home specialist to full-service integrated agency—has been crucial to their sustained success.

🎯 Entrepreneur Philosophy

"We all believe that we are working for a company but the fact is we are working for ourselves when you work a particular place you are building your own credentials. So when you join a place and recruit a place, you are wiser than what you were when you joined right. So every organization that I've worked with I did deliver numbers but at the same time I was building my credentials and hence when you think that you are not working for a company but you are working and you're getting to build your own credentials and you're getting paid for it. I don't think there could be any bigger motivation than this bit."

Conclusion: The Future of Integrated Media

Vikas Nowal and Interspace Communication have demonstrated that it's possible to build a successful, sustainable media agency while competing against industry giants. Their integrated approach, focus on profitability, and commitment to client success has created a blueprint for the future of media services.

As the media landscape continues to fragment and evolve, the demand for integrated solutions will only grow. Interspace's journey shows that with the right strategy, discipline, and focus on delivering real value, entrepreneurs can disrupt even the most established industries.

For aspiring media entrepreneurs, Nowal's story offers hope and practical guidance. By building profit centers, investing in talent, maintaining financial discipline, and staying true to their integrated vision, Interspace Communication has not just survived—they've thrived in an industry dominated by global giants.

The future of media buying lies in integration, and Interspace Communication is leading the way.

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