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Ad Slowdown Looms

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MUMBAI: A slowdown in the advertising economy looms large amid weakening domestic growth, a sliding rupee and wobbly markets.

Fears of a crisis worse than the Lehman days in 2008 are spreading fast and wide as India reports its economic growth for the latest quarter at a nine-year low of 5.3 per cent.

The ad economy will now struggle to match up to the early hope of a 10-12 per cent growth this year.

Admits GroupM South Asia CEO Vikram Sakhuja, “The slowdown will certainly impact ad spends. We had forecast a 12 per cent growth for the advertising industry in 2012. But now that the economy is going through a slowdown, it will be difficult to assess at this stage the exact extent of impact it will have for the year.”

A GroupM study pegs the ad industry size at Rs 333.88 billion in 2011, up 13 per cent. It estimates this to grow 12 per cent to Rs 373.97 billion.

Madison Media has been more conservative with the growth estimates, expecting the media advertising industry to grow 9 per cent to Rs 280.13 billion in 2012.

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Forecasters will need time to make adjustments to their predictions made at the early part of the year. But many of them feel the need to make only minor downward revisions unless the clouds get stormier.

“A clear pattern in consumer spends is not yet visible. A clearer picture will emerge three months down the road,” says Lodestar UM CEO Shashi Sinha.

Historically, ad spends have seen cuts when the economic growth has softened.

Says DraftFCB Ulka Advertising ED and CEO MG Parameswaram, “We have noticed that over the last decade ad spends are broadly aligned with GDP growth numbers. We have seen that when GDP crosses 7 per cent, it has a beneficial effect on ad spends. Similarly when it goes below 5 per cent, it sends signals for a big ad cut. Fortunately we have not gone below 5 per cent, but 5.3 per cent is still bad enough.”

Media analysts feel the road is going to be bumpy this fiscal. Last month, for example, is a bump for the auto sector. Maruti, India‘s largest carmaker, reported a 4 per cent dip in sales in May while Hyundai Motor, the second in rank, saw a paltry 3 per cent rise.

The demand outlook is unlikely to improve, made still harsh by a sharp increase in petrol price. External factors and a slow start may upset the Society of Indian Automobile Manufacturers (SIAM) to roll back its forecast of 10-12 per cent sales growth for the fiscal.

Says ZenithOptimedia CEO Satyajit Sen, “Consumption will get impacted and there will be pressure on price. Being dollar dependent, the telecom handset manufacturers will be hurt. The financial sector will also see a slowdown. Everything, however, will depend on how we recover from the shock of the fourth-quarter economy growth numbers.”

Print will be hurt the most if this slide continues and companies start shrinking their advertising budgets. Television networks, who depend heavily on advertising as their source of revenue, will also feel the heat.

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Says Sen, “Magazines and radio will feel the pinch while television will be the least affected medium.”

Multi Screen Media president network sales, licensing & telephony Rohit Gupta agrees that television is more resilient than the other ad mediums. “Television is still the cheapest medium and in hard times we have traditionally seen print and hoarding face ad cuts. Even in the ‘Lehman‘ crisis, television grew by 10 per cent.”

The mood among Indian industrialists is gloomy as they believe that the economic mess is largely due to government mismanagement and policy paralysis. Despite the European economy getting more desperate and the world, including China, slowing down, a broader ad retreat will not happen if the government starts taking corrective measures.

Companies, however, have already started making efforts to ensure that their ad budgets drive in efficiencies.

Says TV Today Network CEO Joy Chakraborthy, “Advertisers are spending but are showing more caution. In case of a slowdown, they will relook at genres and their advertising mix. Sports (read Cricket) may take a hit as it is a high-investment genre. Niche channels may also get impacted.”

Broadcasters, in fact, will find it difficult to define their terms in case of hard negotiations with media agencies. Advertisers will take a hard look at expensive genres.

Says Sen, “The price inflation in GECs (general entertainment channels) will be under question mark. However, the genre is still a valid opportunity.”

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Gupta does not agree that mass entertainment channels will feel the pinch. “The categories which are heavy on GECs are not going to cut back their ad spends. FMCGS are doing well and telecom service providers will continue to invest in promotions. Even the auto sector, which has increased its share of ad spends on TV, will be visible as there are many car launches taking place. Retail, finance and the manufacturing sector, which are seeing a slowdown, are, in any case, not heavy on television.”

News TV broadcasters, however, depend on the financial and retail sectors. They are already struggling to up ad rates due to competition and fragmentation in the genre.

Joy, however, believes that the situation can‘t worsen for them as news is still a terribly underpriced genre. There are also spike events in the calendar like the Olympics and the elections.

“News broadcasters will not get affected unless the slowdown really starts biting more broadly. Let us not forget that news has a wider source of advertisers. Local advertisers are also present. The time, however, has arrived for innovative sales,” he says.

The next two quarters are going to be crucial and companies will swing their ad budgets accordingly.

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Says LG CMO L.K. Gupta, “If the next couple of quarters or so are bad, then companies will draw up alternatives in terms of marketing spends.”

Advertising will become sales driven. “With the consumer market being hit and inflation staying high, ad spends will definitely take a blow. The bottom line of companies will be under pressure. Advertising in this backdrop will have to be ROI oriented,” says ZenithOptimedia managing partner Sanjoy Chakraborty.

India is facing headwinds from high gas prices, a slowing global economy and financial crisis in Europe. However, nursing the economy back to health will depend on the government‘s drive to manage the fiscal deficit and introduce policy reforms so that investments flow in. The ad industry can only hope that the situation doesn‘t turn grim.

(With inputs from Prachi Srivastava & Urvi Malvania)

MAM

Why the Best Campaigns Today Start With Insights, Not Ideas

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MUMBAI: For decades, creative storytelling has been the cornerstone of brand communication. The “big idea” amplified through catchy jingles, striking visuals, and memorable hooks was once the gold standard for relevance and recall. Creativity defined presence, and the loudest, boldest campaigns often won attention.

But the marketing landscape today looks very different.

Audiences are more exposed, more discerning, and far less patient. They are inundated with messages across platforms, formats, and creators, often encountering hundreds of brand touchpoints in a single day. In this environment, creativity alone especially when untethered from real consumer truths is no longer enough to move behaviour. Great ideas are abundant. Meaningful impact is not.

This is where insights matter.

The difference may seem subtle, but it is fundamental. An idea represents what a brand wants to say. An insight reflects what the audience is already thinking, feeling, or experiencing. The most effective campaigns emerge not from cleverness alone, but from the intersection of these two forces.

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From creativity to relevance

As the marketing ecosystem becomes increasingly saturated, consumers are growing immune to inflated claims and surface-level storytelling. Even beautifully crafted campaigns can fail if they are disconnected from lived realities. The gap between a brand’s internal enthusiasm and the audience’s actual sentiment can be the difference between attention and indifference.

Insights help bridge this gap. They force brands to pause, listen, and observe to understand emotions, behaviours, cultural contexts, and contradictions. Instead of trying to be remembered through louder branding, insight-led campaigns allow audiences to see their own experiences reflected back at them. When a campaign articulates a problem that feels personal, relevance is created. Trust follows.

Insight is interpretation, not information

It’s important to distinguish between data and insight. Data tells us what is happening. Insight explains why it is happening. While data is measurable and structured, insights are interpretive and dynamic, shaped by real-time sentiment and human behaviour.

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Modern consumers are full of contradictions. They demand authenticity while remaining deeply aspirational. They want brands to take a stand but expect nuance, not instruction. They seek transparency, yet are drawn to curated narratives. These tensions are not obstacles, they are opportunities. When understood correctly, they can shape communication that feels timely, credible, and human.

Some of the most effective campaigns today are born not in isolated brainstorm rooms, but through listening to audiences, creators, editors, online communities, and cultural signals. Insights often exist in blurred patterns, but once identified, they can redefine how a brand connects.

A recent campaign we executed for Domino’s illustrates this shift clearly. The brief wasn’t to make a pizza look bigger or louder. Instead, it was rooted in a simple behavioural truth: in Tier 2 and Tier 3 markets, sharing food is an emotional act tied to family, celebration, and value perception. The “Big Big 6-in-1 Pizza” became a canvas for this insight. The campaign leaned into regional voices and real sharing moments, allowing people to show how they experienced the product rather than being told why they should buy it. Influencers and celebrities amplified genuine usage, not scripted endorsements. The impact from engagement to footfall to sales came not from a clever idea, but from understanding how people relate to food in their everyday lives.

Shifting the starting point

Today’s consumer landscape demands a shift in perspective from “What should the brand say?” to “What does the audience need to hear right now?” This marks a move away from inward-led marketing toward communication shaped by behaviour, emotion, and cultural relevance.

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Brands leading today are keen observers. They notice when perfection stops resonating. They sense when luxury shifts from aspiration to excess. They recognise when influencer content begins to feel repetitive and trust erodes.

Virality, too, is often misunderstood. It is not a strategy to chase, but an outcome. Campaigns rooted in insight do not aim to go viral; they aim to resonate. When content reflects something familiar, a shared truth, emotion, or tension, it travels organically because people see themselves in it.

Ideas attract attention. Insights build connection.

The evolving role of PR

For PR professionals, this shift has redefined success. Coverage volume alone no longer tells the full story. The more meaningful questions today are: Did the communication influence behaviour? Did it align with cultural conversations? Did it address a real consumer pain point?

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Insight-first thinking allows these questions to be answered at the planning stage, rather than corrected midway through execution.

In a world where formats and platforms will continue to evolve, what remains constant is the power of authentic communication. The strongest campaigns today do not begin with a brainstorm, but with observation, interpretation, and empathy. That is not just better marketing, it is more responsible, resilient, and meaningful brand-building.

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Brands

Ahmad Muneeb elevated to VP – HR centre of excellence at Zepto

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MUMBAI: Zepto has elevated Ahmad Muneeb to vice president – HR centre of excellence, placing him at the helm of the company’s total rewards, executive compensation and organisational effectiveness as the quick-commerce firm powers through a high-growth phase.

The move follows his stint as senior director of the HR COE, where he played a central role in preparing the company for IPO readiness while scaling its people analytics capabilities. During this period, Muneeb helped align complex performance management structures with more streamlined and scalable employee experience frameworks.

In his new role, he will steer the design of total rewards strategies, executive compensation planning and organisational design, while also overseeing performance management, employee experience initiatives and people analytics programmes.

Before joining Zepto, Muneeb spent nearly three years at Meesho, where he held multiple rewards and HR business partner roles. Earlier in his career, he worked as a senior rewards consultant at Mercer, advising high-tech clients on compensation benchmarking, pay structures and talent-focused reward frameworks.

He began his hr journey at Cognizant, where he supported compensation programmes for nearly two lakh employees across India and worked on m&a compensation alignment and skill-based pay initiatives. Prior to moving into HR, Muneeb started his career as a software engineer at Netcracker, bringing a technical grounding to his people strategy work.

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With a mix of consulting rigour, start-up agility and enterprise-scale experience, Muneeb’s elevation signals Zepto’s continued focus on building robust people systems as it races towards its next phase of growth.

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Brands

Dell names Aishwarya Sudhakar director of marketing intelligence

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INDIA: Dell Technologies is doubling down on artificial intelligence in marketing. The company has elevated Aishwarya Sudhakar to director of marketing measures and intelligence engineering, tasking her with building an enterprise-wide framework for AI-led measurement and customer intelligence.

In the role, Sudhakar will oversee unified data strategy, advanced modelling and context engineering: areas increasingly central to how large technology firms link marketing performance to business outcomes. Her remit includes shaping scalable systems that support Dell’s next phase of AI deployment across marketing functions.

Sudhakar steps into the position after holding a series of senior roles at Dell, including AI lead for marketing orchestration, senior manager, and senior data scientist in customer insights. Across these roles, she led global teams working on large-scale machine learning models, data pipelines and customer analytics.

Before joining Dell, she began her career at Tata Consultancy Services as a systems engineer and later founded Oclor, a shopping discovery start-up, where she built end-to-end technology platforms. The combination of enterprise-scale data work and entrepreneurial experience has shaped her focus on product-led, engineering-first innovation.

As technology companies seek sharper attribution and intelligence in an AI-saturated market, Dell’s move underscores the growing importance of marketing measurement as an engineering discipline rather than a reporting function.

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